Your backtest is probably lying to you. Here is the cheapest way to find out.
Run it again with 0.05% slippage per side and funding costs included.
Most strategies that look profitable are running on a 0.1 to 0.3% edge per trade. Costs that size eat the edge completely.
If your equity curve survives that, you have a strategy. If it does not, you had a spreadsheet.
What is the first thing you add to a backtest before you trust it?
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Run it again with 0.05% slippage per side and funding costs included.
Most strategies that look profitable are running on a 0.1 to 0.3% edge per trade. Costs that size eat the edge completely.
If your equity curve survives that, you have a strategy. If it does not, you had a spreadsheet.
What is the first thing you add to a backtest before you trust it?
$BTC $ETH