My backtest said +0.15% to +0.31% per trade. Real trading gave me a tenth of that.
The strategy: fading the premium on tokenised stocks on Binance futures. On paper it looked great.
Then I ran it forward on a paper account using real bid/ask prices:
• 520 trades
• +257 USD total
• about +0.025% per trade, roughly 1/10 of what the backtest promised
Where did the other 90% go? The spread. Backtests usually assume you get the "mid" price. Real orders pay the gap between buyers and sellers, every time.
If a strategy's edge is only a few hundredths of a percent, the spread will eat it alive.
Does your backtest use bid/ask, or the mid price? 👇
Not financial advice. Paper trading results, shared openly.
#TradingBots #algoTrading #tradingfees #bitcoin $BTC
The strategy: fading the premium on tokenised stocks on Binance futures. On paper it looked great.
Then I ran it forward on a paper account using real bid/ask prices:
• 520 trades
• +257 USD total
• about +0.025% per trade, roughly 1/10 of what the backtest promised
Where did the other 90% go? The spread. Backtests usually assume you get the "mid" price. Real orders pay the gap between buyers and sellers, every time.
If a strategy's edge is only a few hundredths of a percent, the spread will eat it alive.
Does your backtest use bid/ask, or the mid price? 👇
Not financial advice. Paper trading results, shared openly.
#TradingBots #algoTrading #tradingfees #bitcoin $BTC
