Demo account explained (Paper Trading account) | 3Commas Help Center (2024)

Practice Trading in 3Commas without risking your funds!

You don't need to invest anything as a Demo account (ex. Paper Trading account) is a simulation where you get a virtual deposit for trading purposes:

  • Learn how to trade without risking real funds; you can find out about an allowable number of tools in this article.

  • Practice with the 3Commas features.

  • Practice your trading skills and test new trading strategies.

  • Experiment using TradingView custom bot messages or develop your own Apps with the 3Commas Developer API!

IMPORTANT NOTES!

Thank you for your understanding.

Get a similar experience to real trading...

The Demo account replicates actual price movements. The price moves the same way as on a real exchange and in real-time. Demo account price movements are duplicated from real trading prices on the Binance.com Spot market!

BTC has good news and is rocketing to the moon?

ETH has terrible news and is bleeding hard?

It will be the same for the Demo account.

Demo account still requires funds to buy or sell, but you get them the easy way: press a button, and you'll have $10000 deposited to your Demo account!

Sadly, it's impossible to transfer profits made with the Demo account to your real exchange account, but you can reset your losses as often as you want.

You can master technical analysis with a Demo account, and your skills will become stronger when trading your real account.

3Commas features work the same way for both Demo and real trading, but the Demo account is isolated from your real accounts, so if you play with Smart Trade on the Demo account, you won't notice any change in your account balances after switching back to live trading.

...But there's no trading volume simulation

Demo account doesn't simulate liquidity, so unlike real trading, there is no order book simulation and no partial fills. High liquidity pairs like BTC/USDT work well, even without the liquidity simulation. The difference is noticeable only on low liquidity pairs where there are fewer traders and thinner order books.

Differences between Demo account and real trading:

  • Orders fill when the price hits their level regardless of size. 0.1 BTC will have no difference from 10 BTC, but it feels different time on real trading.

  • Market orders fill like there is always someone to buy & sell at the best possible price. On real trading, a market order might fill at the much worse price if there is no liquidity on the exchange order book.

  • All trailing features in 3Commas rely on market orders, which means on Demo account, they will always have the best possible result.

FAQ

Q: What exchange does Demo account use (represents) for trading pairs and chart data?
A:Binance.com Spot markets

Q: Is it possible to add more than one Demo account?
A: No, only one Demo account is allowed.

Q: Is there a maximum amount of active trades and/or active bots I can create on the Demo account?

A: Yes, in order to ensure the Demo account system runs smoothly and efficiently for all users, the maximum number of active deals and bots is set and varies from plan to plan. You can find out about the allowable number of tools in this article. The allowed number of tools described in this article apply to both Real and Demo accounts! For example, if you have an Expert plan and have 250 DCA running bots on a Real account, you cannot launch any bots on a Demo account.

Q: Does Demo account simulate fees?
A: Yes, 0.1% per order.

Q: What is the starting balance for the Demo account?
A: You get the following balances:

  • 10000 USDT

  • 300 BNB

  • 50 ETH

  • 1 BTC

Q: Can I remove funds from the Demo account?
A: No, but you can reset Demo account balance and/or buy some coins that you won't use to leave yourself as much of the needed coin balance as you want.

Q: Is Demo account a paid feature?
A: Yes and no - you don't need to pay specifically for it but you should have one of the paid subscriptions to be able to use the Demo account. Please note that tools available in Demo account will match the subscription you have active.

Demo account explained (Paper Trading account) | 3Commas Help Center (2024)

FAQs

What is the difference between paper trading and demo account? ›

Demo account users receive an amount of virtual money in the beginning, and can start trading by opening selling and buying positions. Just like a real account, the paper trading account shows market movements on the traders' screens, so they can decide if they should continue their trade or get out.

How do I reset my paper trading account? ›

To reset your paper trading account: Click the User menu (head and shoulders icon in the top right corner) > Account Settings > Paper Trading Account Reset. Select the reset amount using the Select Reset Amount drop down menu. If you select Other you can manually enter the amount you want to reset to.

How to reset paper trading 3commas? ›

Thank you for your understanding.
  1. Switch to Demo account mode.
  2. Cancel trades and bots.
  3. Go to the My Portfolio page.
  4. On the Demo Account modal window, click on the 3-dots menu and click on the Delete button.
  5. Confirm the deletion.
  6. Enable the Demo account again.
  7. Here is a short video displaying the entire procedure:

How to trade using demo account? ›

A demo account allows users to buy and sell stocks using paper trading, but test those trades under real, live market situations. Investors may want to try a demo account before they start investing in futures, commodities, or currencies, even if they already have experience investing in stocks.

What are the disadvantages of paper trading? ›

One drawback is that paper trading does not replicate the emotional aspects of real trading, as there is no actual money at stake. Slippage and liquidity: Simulated trading may not account for slippage (price differences between order placement and execution) and liquidity issues that occur in real markets.

Is paper trading good or bad? ›

Paper Trading boosts confidence and enhances the stock trading practices of a new trader. Since it is simulated, there is no scope for gaining actual returns.

When should you stop paper trading? ›

This will depend on each individual's circ*mstances and also how long it takes them to become comfortable. Consider conducting paper trades for at least six months before switching to a live brokerage account. Even after switching, it helps to maintain a demo account to hone your strategy.

How do paper trading accounts work? ›

Paper trading is simulated trading that allows investors to practice buying and selling securities. Paper trading can test a new investment strategy before employing it in a live account. Many online brokers offer clients paper trade accounts.

Do you have to pay for paper trading? ›

Yes, you can paper trade for free. You will have to open an account to do it, but all the brokers listed here allow you to open an account for free.

How do you connect paper trading? ›

Login to your TradingView account and open a chart for the instrument you want to paper trade e.g. AAPL stock. In the bottom pane, click on the account selector dropdown next to the broker logo. Select the “Paper Trading” option. A popup will appear, click on the “Enable” button.

Why is my trading bot not working? ›

You don't have enough money in the right wallet

Note that to run a futures bot, you need to have money in your futures wallet. If you want to run a spot DCA bot, you need to have funds in your spot wallet. If your wallet doesn't have enough funds, you won't even be able to set up a bot.

How to paper trade for free? ›

The 7 Best Stock Market Simulators (Free Virtual Paper Trading Platforms & Apps)
  1. Get your free eToro Demo Account.
  2. Get thinkorswim paperMoney here.
  3. Start using TradeStations Trading Simulator here.
  4. Download NinjaTrader's free Simulate software here.
  5. Get eToro Paper Trading.
Nov 10, 2023

How long should I trade on demo account? ›

Once you deal with those complexities and understand how trading will fit into your real life and you are consistently profitable for several months, you may be ready to trade. Four to six months is a good timeframe to demo before going live (that is four to six months of consistent profit).

How does a demo account work? ›

A demo account is a type of account offered by brokers to simulate the real market environment on their trading platform. The biggest difference is that instead of trading with real money, virtual funds are used. You can therefore not lose any real money when using a demo account.

Is trading with a demo account worth it? ›

Demo trading can also be a good way to 'scratch an itch' responsibly, without any real-world risk. If you just can't shake the urge to try a risky trade, it's better to do it in the demo environment and get it out your system. It's like taking a ride on a rollercoaster instead of buying a motorbike.

Is paper trading demo trading? ›

You'll often see demo accounts described as 'paper trading', which is the term to describe simulated securities trading.

What is the difference between demo and real trading? ›

In demo trading, traders do not have to deal with the emotional stress of losing real money. However, in live trading, traders risk losing their hard-earned money, which can cause them to become emotional and make irrational decisions.

What is a paper trading account? ›

Paper trading is simulated trading that allows investors to practice buying and selling securities. Paper trading can test a new investment strategy before employing it in a live account. Many online brokers offer clients paper trade accounts.

What is the difference between paper trading and real trading? ›

There are several key differences between paper trading and live trading: Risk: The biggest difference between the two approaches is the level of risk involved. With paper trading, you're not risking any real money, so there's no financial risk. With live trading, there's always the potential to lose money.

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