Trade Simulation
Last updated
Last updated
Trade simulation provides a risk-free environment for Waveform agents to practice, refine their strategies, and generate data to improve Waveform’s trading models. In this simulated environment, agents are given Paper SOL to execute trades, allowing them to test their strategies without financial risk. These simulated trades help us gather valuable data on agent performance, which in turn improves our models and enhances future trading algorithms.
Paper SOL Trading
Virtual Trading Environment: Agents are allocated a virtual balance of Paper SOL to execute trades. This simulated trading is designed to mimic real market conditions while removing financial risk.
Simulated Market Data: Trade simulations are based on real-time market data, allowing agents to test strategies under live market conditions without the risk of actual capital loss.
Real-Time Execution: Just like real trading, agents can place buy and sell orders, track their profits or losses, and analyze their trading history.
Collecting Data for Model Improvement
Data-Driven Feedback: Each trade executed in the simulation is tracked to help improve the performance of our models. This includes detailed information on:
Trade volume and frequency
Entry and exit points
Profit and loss per trade
Strategy performance across various market conditions
Continuous Learning: The data collected from paper trades is aggregated and analyzed to enhance our machine learning models, ensuring that real-world performance improves once live trading is enabled.
Performance Analytics and Insights
Trading Insights: After completing a simulation, users can view detailed reports on their trades, including win/loss ratios, average return, and overall portfolio performance.
Agent Performance Metrics: Metrics like trade success rate, reaction to market events, and risk management are assessed to fine-tune the agent's behavior.
Simulated Portfolio Tracking: Users can monitor the performance of their portfolio in real-time, simulating potential gains or losses as if it were actual capital.
1. Set Up Your Agent for Paper Trading
Create a New Agent: In the agent setup dashboard, Paper Trading is enabled by default.
Customize Trading Strategy: Input the strategies you want to test, including market indicators, social monitors, and trade execution rules.
2. Monitor the Performance
View Trade Logs: Check the "Trade Simulation" section in the agent dashboard to track your agent’s performance, including a record of all simulated trades.
Analyze Results: Review trading outcomes, such as the profitability of specific strategies or how well the agent responds to different market conditions.
Refine Your Strategy: Based on the insights gathered, tweak your agent's strategy to improve its performance in future simulations.
3. Evaluate and Optimize
Track Key Metrics: Focus on key performance indicators such as:
Return on investment (ROI)
Current Positions
Avg. Hold Duration
Refine Your Agent: Use the insights and feedback from each trade simulation to adjust the parameters of your agent, optimizing its trading strategy for better performance.
Test Multiple Strategies
Use the simulation to test different types of trading strategies, including trend-following, smart money indicators, or arbitrage strategies, in order to determine which works best in different market conditions.
Optimize Risk Management (Coming soon)
Test risk management features such as stop-loss and take-profit limits to ensure that your agent is managing risk effectively. Simulating various risk scenarios will give you a better understanding of how your agent behaves under pressure.
Analyze Market Events
Simulate trading during high-volatility periods, such as major news events or market crashes, to see how your agent reacts. This helps in fine-tuning responses to market shocks.
Track Performance Over Time
Consistently monitor how your agent performs over extended periods. This can help you identify if your strategies work better during specific market conditions (bullish vs. bearish trends) or in certain time frames.
Earn Rewards for Creating Agents
Incentive Program: As a reward for creating and refining agents, Waveform will offer incentives for users who develop high-performing agents through the paper trading platform. These rewards are based on the agent’s performance in simulations and the data generated, which directly contributes to improving our trading models.
Performance-Based Rewards: Top-performing agents that demonstrate strong profitability, risk management, and adaptability to market changes will be eligible for rewards, which can include:
Exclusive Access to advanced features once real trading is enabled.
Token Rewards and other perks once live trading becomes available.
Help Improve the Platform
Data Contribution: By participating in paper trading, users are directly contributing to the development of Waveform’s trading algorithms. The data generated from paper trades helps improve model accuracy, which benefits all users once real trading begins.
Real Trading Coming Soon: While only paper trading is available at the moment, we’re preparing to enable real trading for agents soon. Once real trading is enabled, users will be able to execute actual trades with real capital, leveraging the strategies they’ve honed during the simulation phase.
Seamless Transition: Users who have participated in trade simulations will have their strategies ready for real trading, and the rewards program will continue, now with real-world financial stakes.
