The Truth about Backtesting

FrancV

Tham gia từ Oct 24, 2023 11bài viết

Nov 30, 2024 at 13:22

Tham gia từ Oct 24, 2023 11bài viết

So, I know you have been told that you need to back-test to master the market. But I will tell you this for free, While you backtest, understand that every bactested strategy is always correct.
The question is what happens in a real-time market?
Always ask Why.

Have you seen a strategy that fails during backtesting? kindly share.

Simple Stuff_Just Keep it Simple and Repeat the Simple Stuff

giannis

Tham gia từ Jan 04, 2018 43bài viết

Nov 30, 2024 at 21:06

Tham gia từ Jan 04, 2018 43bài viết

Try to backtest 15+years and you will see no success in backtest

Đính kèm:

do what you love

blair3

Tham gia từ Oct 17, 2024 31bài viết

Dec 02, 2024 at 06:33

Tham gia từ Oct 17, 2024 31bài viết

Backtesting does not guarantee you a real-time success. Market can change unpredictably, so you have to see how it performs under live market conditions, where expect emotions, slippage, events comes into play.

JaceMilo

Tham gia từ Oct 16, 2024 23bài viết

Dec 02, 2024 at 07:04

Tham gia từ Oct 16, 2024 23bài viết

blair3 posted:
Backtesting does not guarantee you a real-time success. Market can change unpredictably, so you have to see how it performs under live market conditions, where expect emotions, slippage, events comes into play.

That's true tho. You can do all of backtesting as much 1000 as you can but the moment there is a change in market, your backtest become invalid

ChelseaR

Tham gia từ Dec 02, 2024 75bài viết

Dec 03, 2024 at 10:36

Tham gia từ Dec 02, 2024 75bài viết

I have not yet come across a strategy that fails during backtesting because usually it is adjusted to fit the historical data. But I have realized that if a strategy worked during backtesting, that does not guarantee that it would work on live trading.

In real-time markets, anything can happen that may lead to price fluctuations like unexpected news, change in market conditions, or even slippage. This can mess up any backtested strategy.

EURUSD	1.1328	GBPUSD	1.33628	AUDUSD	0.64603
USDJPY	143.012	USDCAD	1.38129	USDCHF	0.82475

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