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?


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carnuts55 at 01/04/18 9:10 AM : RE: virtual trading vs backtest " I have gone to backtesting YTD to check my strategy against real results, real trades. For two years 2015 and 2016 they did well.  Within 1-2%.  However in 2017 a major problem occured that I am trying to find an answer to.  My real results were just below 20% when the backtest results were 96%.  When I check the details of the str..."

TWQS1 at 01/11/18 2:49 PM : RE: virtual trading vs backtest " I believe you have it right ..."

Norman at 01/11/18 10:32 AM : RE: virtual trading vs backtest " If I understand this correctly, RW accounts for dividends so the return would be slightly higher for a portfolio with stocks that pay dividends.     Total Return of Portfolio % – the return of the portfolio comprised of stocks that passed the screening criteria for the period. The returns are "forward - looking" - that is t..."

donihue at 01/10/18 12:58 PM : RE: virtual trading vs backtest " I have not compared RW to actual results, but in my 6 January post on "Accounting for real-world factors in backtesting", I included a VBA subroutine which attempts to check RW's stated backtesting results for a given strategy. Even assuming zero transaction costs and zero price slippage, I invariably find smallish differences each per..."

TWQS1 at 01/04/18 9:16 AM : RE: virtual trading vs backtest " I'd be interested in your findings.  Thanks for the post. ..."

DrewM at 12/06/16 12:03 PM : RE: virtual trading vs backtest " It depends on the how often the trades are made and the bid/ask spread on the stocks you buy. Lets assume you do weekly trading, but do your buys and sells at around 11AM every Monday. Backtesting uses the close price as of Friday and assumes that is the buy price, and the following week with weekly trading, uses the Friday close p..."

TWQS1 at 01/22/18 7:37 AM : RE: virtual trading vs backtest " 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 so..."


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.


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