Day: December 7, 2023

In backtesting a trading strategy, relying solely on a stop-loss strategy may overlook the intricate dynamics of market conditions, potentially leading to suboptimal risk management outcomes and underperformance in live trading scenarios with varying volatility and price movements

Neglecting to factor in brokerage charges or slippages in backtesting a trading strategy can lead to overestimation of profitability and unrealistic expectations, as the simulation fails to account for real-world transaction costs and execution discrepancies