PANNEERSELVAN
Hi sir,
First you need to find the reason for the difference?
You need to go over each trade to determine the reason for the difference. Some potential reasons can be here:
https://algotest.in/blog/why-is-there-is-difference-between-my-live-trade-vs-forward-test-vs-backtest-results/
Backtest is a simulation on historical data. It is done on 1 minute OHLC data. Backtesting assumes you got the best price available at that time but in live things are different. You face slippage, broker delay etc. Hence, there is bound to be some difference in the entry price which could eventually lead to different SL/target.
Now analyse the trades that happened in backtest and live. Compare them and check what is the reason. If you don't understand that you can DM us, we will explain you the reason. Once you know the reason behind the difference you can rectify the strategy accordingly to align with the backtest logic.
Some points you can follow to align with backtest logic.
- Try to create a strategy with SL at least 15-20% (This is just a basic idea. Main point is use a SL which doesn't hit within the entry minute.)
- Try to use a TSL where the first value is higher than 2nd. Like 5-2, 10-5 etc.
- Make sure to use at least 1% slippage in buying and 0.5% in selling. Further you can start live trading your strategy with 1 lot for a month to get an idea how it will perform in the live market.
- Don't trade in illiquid strikes like deep ITM strikes.
Best Execution Settings to follow to align with BackTest Logic https://youtu.be/v7ZGKVIbOsU?si=3jiFrK62lo-CRVm6