What is the difference between backtesting, exchange demo and live trading?
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Compare historical and real-time data, simulated and real funds, and account connections.
What each mode does
A backtest runs a strategy on historical market data with a configured starting balance. Use it to compare trading rules and parameters.
Exchange demo trading follows real-time market data and submits orders to an exchange demo account. It requires API credentials for that environment.
Live trading connects to a real trading account and uses its funds to execute orders.
| Mode | Data and funds | Use |
|---|---|---|
| Backtest | Historical data; simulated starting balance | Compare rules and parameters |
| Exchange demo | Real-time data; simulated funds | Check account connectivity and order execution |
| Live trading | Real-time data; real funds | Execute real trades |
Where backtest capital comes from
Initial capital is a number you set for the test. For example, a 100,000 USDT setting starts the backtest from that simulated balance.
Demo and live runs read data from the selected trading account. Before starting, check the capital basis, order allocation and total exposure limit separately.
Start a run after backtesting
Select the trading environment and account, save the run configuration, complete startup confirmation, and open run monitoring to check the instance.
Backtest progress shows completion of the test job. Run monitoring shows the trading instance, start time, positions and orders.
Where to begin
Choose a strategy, read its trading rules, run a backtest and inspect the trade records. Configure an exchange demo account when you are ready to test real-time execution.
After connecting the account, check the instrument, fees, minimum order size, margin and permissions. Complete startup and verify the instance status.
Troubleshoot a strategy with no trades