RW: 0 years

• virtual trading vs backtest
•  yogiM
  
• 10/18/16 3:31 PM

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?

RW: 10 years

• RE: virtual trading vs backtest
•  TWQS1
  
• 01/22/18 7:37 AM

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.