Changing Recovery Model to SIMPLE and then SHRINK ?

I have a TEST database that I just refresh with data from our LIVE database. Therefore, I do not make any backups of the TEST database. However, the LDF and MDF files are extremely large. I checked and saw that it currently has FULL selected for Recovery Model. I am wondering if it is OK to switch to SIMPLE and then do a SHRINK?

If so, is this what I need to run (see below - found this on another post here)

USE Master

GO

ALTER DATABASE dbname SET RECOVERY SIMPLE;

GO

USE dbname;
GO
DBCC SHRINKFILE(2, 1)
GO

*I can always Restore from the backup of our live database so I am not wanting to make a backup of the TEST database*

Thanks!