Paper trading means placing simulated trades against live market prices without real money at stake. Orders, fills, and P&L are tracked as if real, so you can watch a strategy behave in real conditions - the good days and the ugly ones - before risking capital.

What it is genuinely good for

Paper trading answers two honest questions. First: does the system do what it claims - enter when it should, exit when it should, size correctly? Second, and more important: can you leave it alone? Most damage in trading is self-inflicted - overtrading, moving stops, chasing. Paper mode lets you watch your own reactions with nothing on the line.

The one thing it cannot simulate

Paper trading has a blind spot: emotion under real risk. A drawdown feels different when it is your rent. Simulated fills can also be slightly optimistic, since they do not always model slippage perfectly. So treat paper results as a test of the process, not a promise of the outcome - and when you go live, start small.

Paper trading proves the machine works. Only real money proves you will let it.

How NoVo uses it

NoVo is built to run in paper mode first, on live data through a paper brokerage, so you can watch it read the tape and execute its rules with zero risk. It is the intended on-ramp: prove the system to yourself, get comfortable with the discipline, then flip to live when - and only when - you are ready. Here is what "autonomous" really means in that context.