Crypto trading can be overwhelming even for seasoned traders. Factor in the volatility that’s often synonymous with the crypto market and the risk and difficulty involved increases exponentially. Navigating the 24/7 crypto market and trying to take advantage of trading opportunities can be an impossible task, while algorithmic trading methods that possess the ability to do so are reserved to programmers and investment gurus who can code complex strategies.
We know that crypto traders (novice or pro) deserve better. With the DPP Platform, we have made advanced algorithmic trading strategies easy to learn and accessible to anyone, regardless of their technical ability. The DPP Platform’s Forward Test feature is a key component of this initiative. Forward testing (sometimes known as paper trading) is a common investment term meaning to test “the performance of markets in order to provide further confirmation regarding a system’s effectiveness and show its true colors before real cash is on the line.”
The Forward Testing feature is free to all DPP Platform users. Unlimited forward testing will be available to all who register for the DPP Platform (this requires a minimum deposit of 1 DPP to verify your account). The Forward Test feature allows users to learn how to create, test, and tune algorithmic trading strategies completely risk-free by simulating how strategies perform on exchanges before ever deploying them on a live exchange. We wanted to allow each user to learn algorithmic strategy creation and feel comfortable creating their strategies before launching live trades trading across exchanges. In the future, we will also add support for backtesting.
Forward Testing is also a great way for new traders to learn how markets react to certain strategies and understand how different automated trading strategies can be tweaked to achieve a specific goal. When paired with any of the available Strategy Templates, Forward Testing can also be a very useful tool for learning how to create effective algorithmic strategies before ever putting any real digital assets on the line. Recently we provided an in-depth look at some of the Strategy Templates that are available at launch, you learn more about them here.
So how does the Forward Testing feature work? The DPP Platform currently replicates 1,446 markets across several leading exchanges. Five exchanges are currently supported with Forward Testing, including Binance, Bittrex, Bitstamp, HitBTC, and Tokens. Over time we will expand the number of exchanges that will be supported by the DPP Platform and the Forward Testing feature.
Users can add any digital assets and fiat (supported by the selected exchange) to their Forward Test wallet with a maximum limit of $50,000 per wallet. Once a strategy is created or a Strategy Template is selected, a user can run forward testing by connecting their strategy to one of the available replica exchanges. Once deployed this strategy is tested based on real-time market data.
For each supported market, an order book snapshot is taken every minute from the selected exchange. Strategies can also be set to place orders on the forward test order book, thereby adding further depth to the market. The DPP Platform uses a matching engine to match orders placed by the strategies and remove them from the forward test Order Book. Orders from the exchange’s Order Book snapshot will stay on the forward test Order Book until the next snapshot is taken.
We think Forward Test is going to be a really popular feature with many users. Have fun testing, tuning, and learning how to create your algorithmic strategies. And remember that troubleshooting and making modifications are part of the process of creating a winning strategy. Pay attention to how the market reacts to your strategy when you make certain changes. Soon you’ll be ready to deploy your strategy live and start earning. For more everything DPP Platform and algorithmic trading, keep locked to DPP.
Sign-up for the DPP Platform, invite friends, and start earning immediately! The DPP Platform is a powerful algorithmic trading service bringing advanced automated trading tools to the crypto space, while making them accessible and user-friendly for anyone. All of this is made possible through the platform’s strategy creator which provides a user-friendly drag-and-drop interface where you can create, backtest, forward test, and run multiple automated trading strategies across several exchanges.