November 28, 2018
Paper trading is a good way for new participants to engage in trading the markets without risking their own capital and allowing them to understand the basic market/trading concepts. The markets themselves can be a very complex and intimidating environment for new traders. This is why simulate trading can help out with learning basic strategies, order executions, platforms, chart pattern recognition, backtesting algorithms and so much more until traders are confident to put capital at risk and go live. However, not all simulators are created equal.
Some stock trading simulators in the market today do a decent job at emulating current real-time market conditions but many others fail at providing a learning experience that unparalleled to live to trade. This is because most people trade in what is similar to a stock market game application, simulator or practice software in which order executions are calculated from the entry price of a stock and determine, mathematically, whether you are up or down on that position and by how much. Although this was a major breakthrough back in the early 2000s, by today’s standard, most paper trading software just doesn’t cut it.
Many virtual simulators fail at several critical areas such as displaying the current real-time market data and the environment in an accurate manner, often relying on delayed information. Not being able to account for volume traded in dark pools. Not being able to display accurate level 2 order books and showing which market orders are routed from, how much volume and at what price. Finally, unsophisticated software is simply not able to show what kind of an impact a trader would have on the price of a stock, if they were to trade large quantities, such as partially filled orders, slippage, and liquidity on both sides.
So is there a proper solution for new traders to participate in the market while getting the most accurate market data and information as possible when trading? Yes, the answer is Trader2B.
Trader2B is a proprietary trading firm that has been around for about 10 years. They have spent a tremendous amount of resources in developing a proper simulated trading software called the Haywood Trader Platform in which they are able to emulated real-time market conditions with up to 95% accuracy. Trader2B’s artificial intelligent technology allows them to integrate routing information from various exchanges and brokers, giving them the ability to scan and indicate accurate fills in thin market volume within milliseconds, display precise Level 2 Order Book information showing who is on the bid/ask price as well as all the order execution in the Time and Sales book. The Haywood Trader Platform uses smart technology to provide the most immersive and complete trading experience that all new traders in this modern era need in order to get the most out of a simulated trading environment.
It’s so important nowadays to get precise virtual trading software because there are so many on the market offering similar technology to get the new traders to sign up. However, without being able to account for realistic market environment, all a trader will learn from using inferior software is how that one particular platform works, rather than how to understand key components of the market. A good example of this is, most simulated softwares, are unable to account for where market participants will likely have their stops set at certain key price levels, support, resistance, high of the day or lows of the day. When any of these key levels are triggered, there is typically a liquidity gap in prices, making it hard to enter or exit a market at price without experience some form of slippage. In live trading, this happens all the time. However, when it comes to a simulated environment most softwares overlook this issue, making it impossible for new traders to comprehend this market concept and others like this. This is why it is so important for new traders to understand that when they begin to trade and learn basic strategies, market/trading concepts, chart patterns, and other similar topics, that they do it using a simulator that is the most precise.
For new traders that want to get the most comprehensive paper trading experience in the stock market with a realistic and accurate trading environment, Trader2Bs’ Haywood Trading Platform is the only way to go. It provides new traders with a simulated trading environment that matches real-time market conditions while taking into account how each trades will impact the price of the stock that you trade. Trader2B developed this smart engine to give itself an edge on finding the best possible traders out there and fund them to trade as part of their proprietary trading group. In order to find the best talent, they had to create this software that would give the most accurate representation possible to live trading so that when a trader does go live, their performance and results will remain consistent. This ability gives traders an unparalleled opportunity to learn how to successfully trade the markets in a simulated environment until they can gain the confidence to go live and put capital at risk.