How do I paper trade?

[SunTrader]

Lol...I was doing that 33 year ago.

But if you do, you'll need tick data in order to properly manage stop order.

That.

Should be obvious, or at least 1 minute data.

 

[nooby_mcnoob]

If he's literally doing it on paper, ticks are unnecessary. Simple OHLC candles are sufficient.

 

[SunTrader]

If he's literally doing it on paper, ticks are unnecessary. Simple OHLC candles are sufficient.

Depends on how accurate you want to be. Using OHLC bars, instead of ticks, forcing you to make assumptions.

 

[nooby_mcnoob]

Depends on how accurate you want to be. Using OHLC bars, instead of ticks, forcing you to make assumptions.

If he's literally doing paper and pen trading.... I don't think anything matters haha.

 

[andy_p]

1. Get pen, paper and chart/data.
2. Write down what you bought for how much and when. Stop loss too.
3. Later on check back if SL was hit.
4. Profit

Hello,

How do I check if the stop loss was hit first before the take profit mark? This is what confuses the hell out of me. Do I look at all of the candles and see if the candles went near my stop loss?

 

[rb7]

Hello,

How do I check if the stop loss was hit first before the take profit mark? This is what confuses the hell out of me. Do I look at all of the candles and see if the candles went near my stop loss?

Not sure what else to add except to re-read my previous post.
Maybe you don't like my answer but you gotta do what you gotta to do.
Otherwise, you'll need to guess if you stop loss got hit before your profit tarket.

 

[Pekelo]

and see if the candles went near my stop loss?

Touched, but yes. I was kind of just kidding though, after all we are living in the 21st century and you can paper trade for free online, no need to waste actual paper!

 

[ph1l]

Hello,

How do I check if the stop loss was hit first before the take profit mark? This is what confuses the hell out of me. Do I look at all of the candles and see if the candles went near my stop loss?

You can use a free charting service. For example https://www.barchart.com/stocks/quotes/CAT/interactive-chart

The chart clearly shows some prices occur before others. If your stop and take profit hit the same bar down to the minimum granularity of the service (1 minute in the above example), estimate which was hit first by using the price that was closer to the open of the bar. If they are the same distance, assume the stop was hit first.

 

[SunTrader]

You can use a free charting service. For example https://www.barchart.com/stocks/quotes/CAT/interactive-chart
View attachment 272352
The chart clearly shows some prices occur before others. If your stop and take profit hit the same bar down to the minimum granularity of the service (1 minute in the above example), estimate which was hit first by using the price that was closer to the open of the bar. If they are the same distance, assume the stop was hit first.

I'd say assume the stop was hit regardless of which is closer/same distance.

If a strategy is robust erring on the conservative shouldn't matter.

 

[easymon1]

Hello,

I have a question and this seemed like the closest forum that I can put it in. I have a strategy I`ve bought it and it`s about gap trading. So I have an entry point and exit point or a take profit point. But I also have a stop loss. My question is how to I write it down on paper and how do I know, by looking at the chart or I don`t know how because this is the problem, how do I know if the stop loss hasn`t been triggered and It went on to be profitable to trade or if the take profit point was never ticked or my order wasn`t filled.
Thank you

andy, Do you have a hand-written list and a solid understanding of:
What triggers a buy or a sell to open?
What triggers an exit?