Paper trading basics

PAPER4 min read · updated 2026-07-04

Every account starts in paper mode, and the Free tier stays there. Paper trading runs against your Alpaca paper account: real market data, simulated fills, zero dollars at risk.

The PAPER badge

The PAPER badge in the top bar is the environment indicator: it’s visible from every authenticated screen and flips to a pulsing LIVE (plus a striped top bar and an outline around the entire screen) only after the full enable-live ceremony. While the badge says PAPER, your trades and the automatic engine touch only the paper account. One deliberate exception once live keys are saved: the kill switch’s Liquidate and Cancel open sweep BOTH accounts — an emergency stop shouldn’t care which badge is showing, and it only ever cancels or sells, never buys.

What’s real, what’s simulated

RealSimulated
Market data, signal runs, rankingsOrder fills (executed by Alpaca’s paper engine)
Order lifecycle, audit trail, reconciliationCash and buying power (paper balance)
Risk caps, kill switch, every safety controlProfit and loss

The whole pipeline is identical: same signals, same caps, same reconciliation (the routine check that our records match the broker’s). That makes paper a faithful rehearsal of live, not a toy mode.