Demo vs Live Deployment
Understanding the difference between Demo and Live trading modes is crucial for safe and successful grid trading. This guide explains both modes, when to use each, and how to transition safely.
Demo Mode
What is Demo Mode?
Demo Mode, also known as paper trading or simulated trading, allows you to practice grid trading with virtual funds in a risk-free environment.
Key Characteristics:
- 🎮 Simulated funds - Virtual balance provided for testing
- 📊 Real market data - Uses actual cryptocurrency prices
- 🔄 Full functionality - All features available except real execution
- 💸 Zero financial risk - No real money involved
- ⚡ Instant setup - No exchange connection required
How Demo Mode Works
Your Action → Virtual Order Placed → Simulated Fill (using real prices) → Virtual Profit/Loss
- You create a grid bot with virtual funds
- The system monitors real market prices
- When price hits a grid level, the system simulates an order fill
- Virtual profits/losses are calculated based on real market movements
- You see realistic performance metrics without financial risk
Benefits of Demo Mode
1. Risk-Free Learning
- ✅ Learn the platform without losing money
- ✅ Understand how grids respond to different market conditions
- ✅ Make mistakes without financial consequences
- ✅ Build confidence before trading with real funds
2. Strategy Testing
- ✅ Experiment with different grid configurations
- ✅ Compare arithmetic vs geometric grids
- ✅ Test various price ranges and grid counts
- ✅ Validate your trading ideas
3. Platform Familiarization
- ✅ Explore all features and settings
- ✅ Learn the user interface
- ✅ Understand performance metrics
- ✅ Practice bot management (start/stop/edit)
4. Instant Setup
- ✅ No exchange account needed
- ✅ No API keys required
- ✅ Start trading immediately
- ✅ No verification processes
How to Use Demo Mode
Step 1: Enable Demo Mode
- Look for the mode toggle at the top of the page
- Switch to "Demo"
- You'll receive virtual balance automatically
Step 2: Create and Run Bots
- Create grid bots as you would in live mode
- All configurations work identically
- Monitor performance in real-time
- Bots run 24/7 using real market data
Step 3: Analyze Results
- Track profit/loss over time
- Identify optimal parameter settings
- Learn which market conditions work best
- Document successful configurations
Spend at least 1-2 weeks in demo mode before moving to live trading. This helps you understand:
- How grids respond to volatility
- Optimal parameter settings for different pairs
- When to adjust or stop a bot
Limitations of Demo Mode
While demo mode is valuable, it has some limitations:
1. Simplified Order Execution
- 📍 Simulated fills: Assumes all orders fill at exact grid prices
- 📍 No slippage: Real markets may have slight price differences
- 📍 Perfect liquidity: Demo assumes infinite liquidity
- 📍 Instant execution: No order queue delays
What this means: Your demo performance may be slightly better than live trading. Real trades can have:
- Slippage (±0.05-0.2% typical)
- Partial fills taking longer
- Orders not filling in low liquidity
2. Psychological Differences
- 📍 No emotional impact: Virtual money doesn't trigger real fear/greed
- 📍 Different decision making: Easier to hold losing positions
- 📍 Risk perception: May take more aggressive positions
What this means: Live trading will feel different emotionally. Real money triggers psychological responses that demos can't replicate.
3. Exchange-Specific Features
- 📍 Fee structures: May differ from simulation
- 📍 Order types: Some advanced orders unavailable
- 📍 Rate limits: Real APIs have restrictions
When to Use Demo Mode
Perfect For:
- 🎓 Beginners learning grid trading concepts
- 🧪 Testing strategies before risking capital
- 📚 Learning platform features and interface
- 🔬 Experimenting with new parameter combinations
- 📊 Backtesting ideas against current market data
Example Scenarios:
Scenario 1: New User
→ Spend 2 weeks in demo
→ Create 3-5 different grid configurations
→ Observe how they perform in various market conditions
→ Identify which setups work best
→ Transition to live with small amounts
Scenario 2: New Trading Pair
→ Even experienced users test new pairs in demo first
→ Understand the pair's volatility characteristics
→ Find optimal grid spacing and range
→ Validate strategy before live deployment
Scenario 3: Parameter Optimization
→ Test 10 different grid counts
→ Compare performance over 1 week
→ Choose best-performing configuration
→ Deploy in live mode
Live Mode
What is Live Mode?
Live Mode connects to real cryptocurrency exchanges and executes actual trades with your funds.
Key Characteristics:
- 💰 Real money - Actual cryptocurrency and profits/losses
- 🔌 Exchange integration - Direct API connection to exchanges
- ⚡ Real execution - Orders placed on actual order books
- 📈 True performance - Reflects real market conditions
- 🎯 Real profits - Can earn actual returns
Requirements for Live Mode
1. Exchange Account
You need:
- Active account on a supported exchange
- Completed KYC verification (if required by exchange)
- Sufficient balance in your trading pair currencies
Supported Exchanges:
- Binance
- Coinbase Pro
- Kraken
- [Additional exchanges based on your integration]
Check the exchange list in your account settings to see all supported platforms.
2. API Keys Setup
To connect your exchange account, you'll need to create API keys. Here's the complete process:
Step-by-Step API Key Creation:
On Your Exchange (Example: Binance)
-
Log in to your exchange account
-
Navigate to API Management
- Usually found in Account → API Settings
- May require 2FA verification
-
Create New API Key
- Click "Create API" or "New API Key"
- Give it a descriptive name (e.g., "Kelor Grid Bot")
- Complete any security verification
-
Configure Permissions
- ✅ Enable: "Read" permission (view account data)
- ✅ Enable: "Trade" permission (place/cancel orders)
- ❌ DISABLE: "Withdraw" permission (critical for security!)
- ❌ DISABLE: "Transfer" permission
NEVER enable "Withdraw" or "Transfer" permissions! Your API keys should only be able to trade, not move funds out of the exchange.
-
Optional Security Features
- IP Whitelist: Add your IP address if available (highly recommended)
- Trade Limits: Set maximum daily trade volume if possible
- Time Restrictions: Limit trading hours if exchange supports it
-
Save Your Keys
- Copy the API Key (public key)
- Copy the Secret Key (private key - shown only once!)
- Store securely - you cannot retrieve the secret key later
Example API Key:
API Key: 7xK9mPqR3vN2hL8jF6gD4wS1tY5zC0bA
Secret Key: 3nF8kJ2mR7pL9sT4vX1qW6yC5bN0hG8d
(Example only - never share your real keys!)
In Kelor Platform
- Go to Settings → Exchange Connections
- Click "Add Exchange"
- Select your exchange from dropdown
- Enter API Details:
- Paste API Key
- Paste Secret Key
- (Optional) Add nickname for this connection
- Click "Connect"
- Verify Connection
- System tests the connection
- You'll see your exchange balance if successful
- Green checkmark indicates active connection
Connection Status:
✅ Connected - Ready to trade
⚠️ Invalid Keys - Check your API key/secret
❌ Permission Error - Enable trade permission
🔐 IP Restricted - Add your IP to whitelist
API Security Best Practices
Essential Security Measures
1. Minimum Permissions
✅ READ: Yes (view account, balances, orders)
✅ TRADE: Yes (create/cancel orders)
❌ WITHDRAW: NO (never enable!)
❌ TRANSFER: NO (never enable!)
2. IP Whitelisting
- Add Kelor platform IP addresses to your exchange whitelist
- Prevents API usage from unauthorized locations
- Check exchange documentation for IP whitelist feature
3. API Key Management
- 🔑 Unique keys: Create separate API keys for each platform
- 🔄 Regular rotation: Change API keys every 3-6 months
- 🗑️ Revoke unused: Delete API keys you're not using
- 💾 Secure storage: Never store keys in plain text files or emails
4. Monitor Activity
- Regularly check exchange API activity logs
- Watch for unauthorized access attempts
- Set up email notifications for API usage
5. Account Security
- Enable 2FA (Two-Factor Authentication) on your exchange
- Use strong, unique passwords
- Enable withdrawal whitelist addresses
- Set up email/SMS alerts for account changes
If you suspect your API keys are compromised:
- Immediately revoke them in your exchange account
- Check for unauthorized trades
- Generate new API keys with different credentials
- Update connection in Kelor platform
3. Available Balance
Before starting a live grid bot, ensure you have:
- Sufficient funds in both base and quote currencies
- Extra balance for trading fees (typically 0.1% per trade)
- Reserve funds for market opportunities outside the grid
Example Balance Check:
Trading Pair: BTC/USDT
Grid Bot Investment: 0.5 BTC + 10,000 USDT
Required Exchange Balance:
- BTC: 0.5 + 0.01 (fees) = 0.51 BTC minimum
- USDT: 10,000 + 200 (fees) = 10,200 USDT minimum
Recommended:
- Keep 10-20% extra for fees and opportunities
Benefits of Live Mode
1. Real Profits
- 💰 Earn actual cryptocurrency returns
- 📈 Build wealth through consistent grid trading
- 💵 Withdraw profits to your wallet
2. True Performance
- 📊 Experience real market execution
- 🎯 Understand actual slippage and fees
- 🔄 Learn from real trading conditions
3. Emotional Learning
- 🧠 Develop discipline with real money
- 😌 Build confidence through profitable trades
- 😰 Learn to manage fear and greed
4. Portfolio Growth
- 📈 Compound returns over time
- 🔁 Reinvest profits into larger positions
- 💎 Build long-term cryptocurrency holdings
Risks of Live Mode
Be aware of these risks when trading live:
1. Financial Loss
- ⚠️ Market risk: Prices can move against your positions
- ⚠️ Strategy risk: Grid may underperform in trending markets
- ⚠️ Configuration risk: Incorrect parameters lead to losses
Mitigation:
- Never invest more than you can afford to lose
- Always set stop-loss limits
- Start with small amounts
- Diversify across multiple bots/pairs
2. Exchange Risks
- ⚠️ API issues: Connection failures or bugs
- ⚠️ Exchange downtime: Maintenance or technical problems
- ⚠️ Security: Potential hacking or compromise
Mitigation:
- Use reputable, established exchanges
- Enable all security features
- Monitor bot status regularly
- Keep most funds in secure wallets, not on exchanges
3. Execution Risks
- ⚠️ Slippage: Orders fill at slightly different prices
- ⚠️ Partial fills: Orders may not complete fully
- ⚠️ Order queue: Delays during high volatility
Mitigation:
- Choose high-liquidity pairs
- Use reasonable order sizes
- Enable partial fills
- Monitor order execution
When to Use Live Mode
You're Ready for Live Trading When:
- ✅ You've practiced extensively in demo mode (2+ weeks)
- ✅ You understand grid trading mechanics thoroughly
- ✅ You have a tested, profitable strategy
- ✅ You're comfortable with the risks involved
- ✅ You've set up proper risk management (stop loss)
- ✅ You can monitor your bots regularly
- ✅ You're emotionally prepared for potential losses
Start Small:
Phase 1: Demo
- 2-4 weeks testing
- Multiple configurations
- Various market conditions
Phase 2: Small Live
- 5-10% of intended capital
- 1-2 bots maximum
- High liquidity pairs only
- Daily monitoring
Phase 3: Scale Up
- After 2-4 weeks of profitable live trading
- Gradually increase allocation
- Add more bots if desired
- Maintain risk limits
Phase 4: Full Deployment
- Proven track record (2-3 months)
- Confident in strategy
- Established risk management
- Comfortable with process
Switching Between Modes
Demo to Live Transition
Recommended Approach:
Step 1: Validate in Demo
Time: 2-4 weeks
Goal: Achieve consistent profitability
Metrics to Track:
- Average ROI across all demo bots
- Win rate (% of profitable trades)
- Maximum drawdown
- Performance in different market conditions
Step 2: Prepare for Live
Actions:
- Create exchange account
- Complete KYC verification
- Generate API keys with correct permissions
- Fund exchange account
- Connect API to Kelor platform
- Verify connection successful
Step 3: Start Small
First Live Bot:
- Use only 5-10% of planned capital
- Choose your best-performing demo configuration
- Select high-liquidity pair (BTC/USDT or ETH/USDT)
- Set conservative stop loss (-15%)
- Monitor daily for first week
Step 4: Monitor and Compare
Compare:
- Live vs demo performance
- Actual fees vs expected
- Execution quality (slippage, fills)
- Your emotional response
Adjust:
- Refine parameters based on real results
- Account for actual fees and slippage
- Optimize grid spacing if needed
Step 5: Scale Gradually
After 2-4 weeks of successful live trading:
- Increase position size by 50-100%
- Add second bot with different parameters
- Continue monitoring closely
After 2-3 months:
- Scale to full intended capital
- Run multiple bots if desired
- Maintain risk management discipline
Live to Demo Switch
You can switch back to demo mode anytime to:
Test New Strategies
Scenario: You want to try a new grid configuration
Action:
1. Keep live bots running with proven settings
2. Switch to demo mode
3. Create new bot with experimental parameters
4. Test for 1-2 weeks
5. If successful, create similar bot in live mode
Practice with New Pairs
Scenario: Want to trade a new cryptocurrency
Action:
1. Switch to demo mode
2. Create grid bot for new pair
3. Observe performance for 2 weeks
4. Understand pair's volatility and patterns
5. Deploy to live mode with appropriate parameters
Learn New Features
Scenario: Platform adds new grid trading features
Action:
1. Test new features in demo mode first
2. Understand how they work
3. Validate performance
4. Apply to live bots once comfortable
Demo and live modes are independent. Your live bots continue running when you view demo mode, and vice versa. Use the mode toggle to switch views.
Demo vs Live Comparison Table
| Feature | Demo Mode | Live Mode |
|---|---|---|
| Capital | Virtual funds | Real cryptocurrency |
| Profits/Losses | Simulated | Actual money |
| Market Data | Real prices | Real prices |
| Order Execution | Simulated | Real on exchange |
| Slippage | None | Present |
| Fees | Estimated | Actual |
| Risk | Zero financial | Real money at risk |
| Setup Time | Instant | Requires API keys |
| Learning Value | High | Very high |
| Emotional Impact | Low | High |
| Best For | Learning, testing | Earning, growing |
Frequently Asked Questions
Q: Can I run demo and live bots simultaneously?
A: Yes! Demo and live modes are completely independent. You can test strategies in demo while running profitable bots in live mode.
Q: Do demo results guarantee live success?
A: No. Demo performance is typically slightly better due to perfect execution. Expect live results to be 5-15% less profitable due to fees, slippage, and execution realities.
Q: How long should I practice in demo mode?
A: Minimum 2 weeks, recommended 4 weeks. Test multiple configurations across different market conditions before going live.
Q: Can I copy a demo bot configuration to live mode?
A: Yes! Once you have a profitable demo bot, you can create a new live bot with identical parameters.
Q: Is demo mode realistic?
A: Very realistic for learning mechanics and parameter tuning. However, it can't replicate the emotional aspect of risking real money or real execution challenges.
Q: What's the minimum amount for live trading?
A: Depends on the exchange and pair. Generally, start with $500-$1000 equivalent to ensure orders meet exchange minimums and fees don't eat profits.
Next Steps
Now that you understand demo vs live trading: