An algorithmic strategy evaluates predefined conditions consistently. Paper trading applies those decisions to simulated balances and positions. It is useful for testing workflow and behavior, but it cannot perfectly reproduce live liquidity, slippage, or market impact.

Separate signal from order

A signal expresses what the model observes. An order expresses how much simulated exposure to take. Risk controls belong between those two steps.

Record the assumptions

Price source, evaluation time, fees, rounding, and rebalance frequency materially affect results.

Paper action
Submit a small simulated order and verify the price, fee, balance change, and decision history.