Back-testing and live different behaviour

• 09/01/2020 at 4:14 PM #143138
  Jiankyr82

  Hi Guys,

  I loaded my first strategy to test it live. Its behaviour to open/close positions differs between the “back-testing” and “live”.

  The amount of size is very small so I care about its functionality and not about to gain at this stage. I am wondering if it is possible and has happened to others and know how to deal and optimise similar cases.

  i.e. opened a position w/o criteria achieved in the “live” while in backtesting works as it code

  is it possible?

  Cheers

  

  Jiankyr82

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  09/25/2020 at 10:27 AM #145326
  Nicolas

  Here is a short list to check to understand why live orders can differ from backtests and/or demo trading:

  • backtests should always be made with tick by tick mode enable
  • check the time zone between backtests and live trading
  • check the custom trading hours / sunday data visible or not
  • define a spread value in your backtest
  • slippage may occur in live trading
  • spread values can change over time according to the broker decision
  • instruction like SET STOP TRAILING may act differently between backtests and live trading (use preferably soft coded version of trailing stop)
  • some strategies act differently if the launch date is different
  • respect the price to stop distance imposed by the broker

  2 users thanked author for this post.

  Jiankyr82, Kovit

  

  Nicolas

  Keymaster

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