Foretale Trading Engine
info
The Foretale trading engine is a simple trading engine that neither accounts for zero slippage (the liquidity of all market assets is high enough that each trade can be carried out immediately at the last price when an order is placed) and zero market impact (the capital invested by the software trading agent is so insignificant that is has no influence on the market). It always simulates with market orders (take fee is applied).
Why Simulate a Trading Engine?
In order to backtest flows, it is necessary to run simulations on historical data. A simplistic simulation could be achieved with just historical crypto pricing data, however such an implementation ignores many of the nuances of crypto trading. That’s why we have developed our own trading environment to robustly back test and simulate flows developed by Foretale on historic data.
How perfect is a Trading Engine Simulation?
It is widely acknowledged that trying to simulate any event perfectly is pretty much impossible, furthermore a simulation on historical data should not be considered as a correct prediction of future events. There are always factors and influences that a simulation cannot take into consideration. The Foretale Trading Engine simulator tries to incorporate as many factors as possible into our trading environment to make it as robust as possible. The more robust the simulation of the trading environment the more indicative the results of the simulation are of future performance.
danger
Historical events are no guarantee of future performance.