Does Demo Mode place real trades on the exchange?
No.
Demo Mode does NOT place real trades on any exchange.
When Demo Mode is enabled, MagicTradeBot runs in a fully simulated trading environment. All trade entries, exits, DCA executions, and profit/loss calculations are handled internally by the bot.
How Demo Mode Handles Trades
When DemoMode: true:
❌ No orders are sent to the exchange
❌ No real positions are opened
❌ No real margin is used
❌ No exchange balances are modified
Instead, the bot:
Simulates order placement internally
Tracks entry price and DCA levels
Applies Smart SL/TP logic
Calculates approximate realized PnL
Marks trades as Win or Loss
Stores trade history locally
Where Is Demo Trade History Stored?
MagicTradeBot uses a lightweight, portable internal database (SQLite) to record trade history.
This means:
No external database is required
No additional configuration is needed
Trade records are stored locally
The system remains fully self-contained
This same internal storage system is also used in Live Mode to track trade history for internal logic, analytics, and reporting.
So even in live trading:
The bot maintains its own internal trade state
It does not rely solely on exchange history for decision-making
Why This Design Matters
By separating internal trade logic from exchange execution:
Demo Mode can fully simulate real trading behavior
Live Mode can maintain consistent internal state even during:
API interruptions
Partial fills
Exchange latency issues
Temporary connectivity problems
This architecture ensures stability and consistency across both demo and live environments.
Important Clarification
Even though Demo Mode uses real-time market data:
It does not interact with exchange order books
It does not incur trading fees
It does not experience real slippage
It does not impact your exchange account in any way
Your exchange account remains completely untouched.
Summary
Demo Mode = 100% simulated execution
No real trades are placed
No capital is at risk
Trade history is stored locally via SQLite
Same internal trade tracking engine is used in Live Mode
Demo Mode is designed to provide realistic strategy validation — without financial exposure.