Yes, you still need to enter your Betfair login, even if you plan to place only simulation (virtual) bets. It works so because the bot still needs to fetch prices from Betfair. Depending on your settings prices may need to be updated as fast as every second which is not possible without signing into Betfair account.
However without entering Betfair login you still can do lots of things, for example, search and load races, test staking plans, load selections from free tipsters, set up your betting systems. The only limitation is that no bets will be placed until you are signed into Betfair.
