A practical guide explaining why backtest results often fail to match live trading performance, covering key issues like look-ahead bias, slippage, overfitting, partial fills, latency, and unrealistic execution assumptions. The article shows traders how to validate strategies more realistically before risking live capital.
A practical guide explaining why backtest results often fail to match live trading performance, covering key issues like look-ahead bias, slippage, overfitting, partial fills, latency, and unrealistic execution assumptions. The article shows traders how to validate strategies more realistically before risking live capital.