QC Paper Trading

I am not sure if I understand what QC paper trading platform is.  Is this QC platform linked to a real broker demo account? 

Also, is the following strategy/algorithm lifecycle correct?

  1. Strategy development (e.g. in Python)
  2. Strategy backtesting
  3. QC paper trading testing
  4. IB paper trading testing (or other partner broker)
  5. Live trading on IB live account (or other partner broker).


Update Backtest

I would say the life cycle is correct. Though I never stop 3 and 4 if possible, I just add 5. It helps to know the differences and try to eliminate them via adjusting slippage or fees.

The docs describe QC's paper trading as:

"See how your algorithm would have performed with our paper trading feature. We use real live-data feeds but a virtual brokerage to execute your trades. Each project is allocated $100,000 virtual currency to track how you've performed."

This QC paper step is very important. Moving from the backtester to a live server/data may have some unexpected surprises to debug. One example: I didn't realize a compute process would take 5+ minutes due to a slight difference with History speed. So my on-open orders were over 5 minutes late due to my own bad planning (fixed by simply moving compute stuff to pre open). You want to perform a hardcore review to ensure your live-data algos match the intentions of the backtest and how it was undertaken.


Derek, thanks for your very helpful feedback.


Update Backtest


The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


This discussion is closed