Learn to Trade: from Emulation Mode to Live Orders on Crypto Market

Moontrader's emulator is a convenient mode for practising and testing strategies without risking any funds. It allows you to run algorithms and practise manual trading directly in the terminal without sending real orders to the exchange. However, it’s important to understand that results in the emulator and in the live market can differ significantly.

In emulation mode, all operations occur 'inside' the terminal. All the features available to users in live trading are also accessible in the trading emulator. This enables you to test any tools without risking your capital. What's more, you can even start with a zero balance.

Here's what the trading emulator offers traders:

• The freedom to test any available terminal tools;
• An opportunity to learn how to trade and understand how specific algorithm settings affect outcomes;
• A safe environment for developing skills and gaining insight into how the cryptocurrency market works, without paying for experience with real money.

How to enable it?

You can do this from the main interface screen or in individual algorithms, which is useful if you are already live trading but want to test a new strategy without involving your deposit.

The main feature of emulation mode is that there is no data exchange between the Exchange and the Terminal. On the one hand, this enables users to test strategies without using their deposit. However, it provides results that are close to reality, but not 100% accurate. Only the real market can provide precise outcomes, so interpret emulator results carefully.

Before launching algorithms on the live market, remember:

• There is no actual data exchange with the exchange in emulation mode. The terminal receives data but sends nothing back.
• In live trading, slippage and delays in the Exchange's response can occur, particularly in high-frequency trading.
• The emulator does not pose a risk of API bans due to high request volumes. In reality, Exchanges limit the number and frequency of orders. When switching to live trading, adapt your strategy to these limits.
• The emulator executes all orders equally, regardless of order book position. In the real market, your order may not be filled immediately or may only be filled partially.
• Real trading fees can reduce profitability, so make sure you factor this in during your analysis.

Now that you understand how emulation mode works, here are some general recommendations from the Moontrader team. These cover everything from testing to switching to live trading.

1. Use the emulator to learn, test and optimise your strategy;
2. Analyse which elements may behave differently in real market conditions;
3. Switch to live trading gradually, starting with small volumes;
4. Monitor how the strategy behaves in real conditions and adjust accordingly.

The emulator is just one step in the journey. Real trading begins when you have a full understanding of the market nuances and can apply your strategies while being aware of how they behave in the real market.

Use the emulator to learn, hone your skills and trial your strategies. However, remember that only the live market will reveal true results and effective strategies. When switching to live trading, take your time to analyse the market and use the built-in terminal tools to make your strategy more reliable, flexible, profitable and enjoyable. 

Not installed the terminal yet? Join via our referral links to receive discounts on Exchange commissions and bonuses, as well as a free PRO licence for Moontrader.

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