Hi @ankurjainank
First, you need to understand why there is a difference between backtesting results and live trading results. Backtesting is a simulation of historical data, done on 1 minute Open, Low, High, Close (OLHC) data. It assumes that you got the best price available at that time, but in live trading, things are different. You may face slippage, broker delays, and other factors that can cause a difference between backtesting and live trading.
To understand the reasons behind the difference, you can refer to this blog https://algotest.in/blog/why-is-there-is-difference-between-my-live-trade-vs-forward-test-vs-backtest-results/. After understanding the reasons, you can analyze the trades that happened in both backtesting and live trading and compare them. If you have any questions, feel free to send me a direct message on telegram https://t.me/Algotest_Support_Sahil, and I will be happy to explain.
Once you understand the reasons for the difference, you can adjust your strategy accordingly. Here are some tips to help you align your strategy with backtesting logic:
- Use a stop loss (SL) of at least 10% (this is just a basic idea; the main point is to use a SL that won't hit within 1 minute).
- Use a trailing stop loss (TSL) where the first value is higher than the second, such as 5-2, 10-5, etc.
- Make sure to use at least 1% slippage in buying and 0.5% in selling. You can start your strategy with 1 lot for 1 month to get an idea of how much you can gain in the live market.
- Avoid trading in illiquid strikes like deep-in-the-money (ITM) strikes.