Hi sir
First you need to understand how backtesting works. Then only you will be able to create a logical strategy that align with backtest logic.
How BackTesting Works?
Backtest is simulation on historical data. It is done on 1 minute OLHC data. There are some logics and assumption on which it works. It assumes you got the best price available at that time but in live things are different. You face sippage, broker delay etc. So there is bound to have some difference.
How can I align with BackTest Logic?
First you need to know why there can be difference and what are the reasons which are causing the differece.
To know the reason please look into this blog https://algotest.in/blog/why-is-there-is-difference-between-my-live-trade-vs-forward-test-vs-backtest-results/
Analyse your Trades
Now analyse the trades that happend in backtest and live. You can get your past live trades by clicking on past trades button on live trade page. Compare them and check if any of the reason given in blog matches here. If you dont understand you can DM any of group admin. Now you got the reason behind that. Now you can rectify the strategy accordingly so that it align with backtest logic.
Some points you can follow to align with backtest logic.
- Don't use small Stoploss/Target/Momentum. In live market where prices may move 10-20 points in a second, if you use SL like 4-5% it might not work for you. Try to create a strategy with SL/Target/Momentum atleast 10% (This is just a basic idea. Main point is use a SL which don't hit within 1 minute.)
- Try to use a TSL where first value is higher than 2nd. Like 5-2, 10-5 etc and not 2-5, 5-10 etc. To know in details how agressive trailing works please read https://t.me/AlgoTest_In/261348
- Make sure to use atlease 1% slippage in buying and 0.5% in selling. Further you can start your strategy with 1 lot for 1 month to get an idea how much you get in live market.
- Don't trade in illiquid strikes like deep ITM strikes.
- Execution settings helps you to align your live execution with backtest logic. Best Execution Settings to follow to align with BackTest Logic https://youtu.be/v7ZGKVIbOsU?si=3jiFrK62lo-CRVm6
Note :- These points you only need to follow if you are looking to align with BackTest logic. But if you have any discretionry or logic behind your strategy then no need to follow these.