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Backtesting Strategies: Common Pitfalls to Avoid

2023-12-25 · 9 min read

Equity curve versus live fill gapBacktestLive fills

The usual failures

The usual failures: using future bars, ignoring slippage, testing on one instrument, and fitting every parameter to the last bull market.

Indian F&O has session boundaries and expiry. Crypto trades the weekend. A backtest that pretends otherwise will flatter the strategy.

Test where you will trade

Use the platform you will trade: AlgoCrab backtests, Charting date-range tests, or MT5 strategy tester. Then demo. Then small live size. A curve in a spreadsheet that never saw the broker's reject codes is research theatre.

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