Has anyone compared the results of actual testing backtest screen results with buying the stocks in a virtual trading account for say 3 months and compared the results to see how much difference there is between the two?
Has anyone compared the results of actual testing backtest screen results with buying the stocks in a virtual trading account for say 3 months and compared the results to see how much difference there is between the two?
I buy and sell every 6th market day. So I don't follow the Monday buying approach. My average APR is approximately 56% using just RW.
The Friday versus Monday discussion is real but of no actual consequence in my opinion. If you get a trade signal to buy or sell in any software your actual fill will sometimes be better and sometimes worse than the price that triggered the signal.
I used to think the way temn8er does. Not anymore, after I had a wake up moment. The point of any trading strategy is NOT our ability to mimic backtest results. The point of backtest results is to evaluate whether strategy A is better to trade than strategy B.
Take the backtest APR and reduce it by expected trading costs and an assumed slip per turn. Say strategy B comes out on top with an APR of 80%. Paper trade it if you are cautious. Use money management techniques for drawdown mitigation. And whether real or paper if you only realize 56% are you really that unhappy.