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Execution Mode Comparison and Transition Guide

This guide provides a comprehensive comparison of Planar's three execution modes (Sim, Paper, and Live) and guidance on safely transitioning between them.

Mode Overview

Planar supports three distinct execution modes, each designed for different stages of strategy development and deployment:

Detailed Mode Comparison

Feature Comparison Matrix

FeatureSim ModePaper ModeLive Mode
Data SourceHistoricalLive Market DataLive Market Data
Order ExecutionSimulatedSimulatedReal Exchange API
Capital RiskNoneNoneReal Money
Market ImpactNoneNoneReal
LatencyNoneReal NetworkReal Network + Exchange
SlippageModeledModeled from Order BookReal Market Slippage
FeesModeledModeledReal Exchange Fees
Order BookHistorical/ModeledReal-timeReal-time
SpeedVery FastReal-timeReal-time
API LimitsNoneRate LimitedRate Limited
Funding CostsModeledModeledReal

Execution Characteristics

Sim Mode (Backtesting)

Best Use Cases:

  • Strategy development and debugging
  • Parameter optimization
  • Historical performance analysis
  • Backtesting across multiple time periods
  • Monte Carlo simulations

Performance Characteristics:

  • Speed: ~3.9M candles in 8 seconds (single core)
  • Memory: 2-8GB depending on data size
  • Scalability: Excellent for large datasets

Paper Mode

Best Use Cases:

  • Strategy validation with live data
  • Real-time performance monitoring
  • Market condition adaptation testing
  • Pre-live deployment validation
  • Strategy parameter fine-tuning

Performance Characteristics:

  • Speed: Real-time (limited by market data frequency)
  • Memory: 1-4GB depending on complexity
  • Latency: Network + processing delays

Live Mode

Best Use Cases:

  • Production trading
  • Real capital deployment
  • Market making strategies
  • Arbitrage opportunities
  • Professional trading operations

Performance Characteristics:

Transition Strategies

Development Workflow

The recommended development workflow follows a systematic progression through all three modes:

graph TD
    A[Strategy Idea] --> B[Sim Mode Development]
    B --> C[Parameter Optimization]
    C --> D[Historical Validation]
    D --> E{Results Satisfactory?}
    E -->|No| B
    E -->|Yes| F[Paper Mode Testing]
    F --> G[Real-time Validation]
    G --> H[Market Condition Testing]
    H --> I{Paper Results Good?}
    I -->|No| J[Refine Strategy]
    J --> B
    I -->|Yes| K[Live Mode Preparation]
    K --> L[Small Capital Test]
    L --> M[Gradual Scale-up]
    M --> N[Full Deployment]

Sim to Paper Transition

Pre-transition Checklist

Configuration Adjustments

Paper to Live Transition

Comprehensive Validation

Live Mode Preparation

Common Pitfalls and How to Avoid Them

Sim Mode Pitfalls

1. Overfitting to Historical Data

2. Unrealistic Execution Assumptions

Paper Mode Pitfalls

1. Ignoring Market Impact

2. Over-optimizing on Current Market Conditions

Live Mode Pitfalls

1. Insufficient Capital Management

2. Inadequate Risk Management

Best Practices for Mode Transitions

1. Gradual Transition Approach

2. Validation Gates

3. Configuration Management

See Also

Monitoring and Alerting Across Modes

Cross-Mode Performance Tracking

This comprehensive mode comparison and transition guide provides traders with the knowledge needed to safely and effectively move their strategies from development through to live trading, while avoiding common pitfalls and maintaining proper risk management throughout the process.