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| Common mistakes in strategy testing and how to avoid them http://www.arwen-undomiel.com/forum/viewtopic.php?f=1&t=340545 |
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| Author: | wick94566 [ March 25th, 2025, 8:25 am ] |
| Post subject: | Common mistakes in strategy testing and how to avoid them |
I’ve been testing my trading strategies for a while now, but I recently realized I might be doing it all wrong. A few months ago, I backtested a strategy, and the results looked amazing—consistent profits, minimal drawdowns. I was convinced I had found a winning formula. But when I switched to live trading, it completely fell apart. Trades that should have been winners turned into losses, and I started doubting my whole approach. Now I’m wondering—what are the most common mistakes traders make when testing strategies, and how can I avoid them? |
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| Author: | ramoje8068 [ March 25th, 2025, 9:24 am ] |
| Post subject: | Re: Common mistakes in strategy testing and how to avoid the |
Yeah, I’ve been there before. One of the biggest mistakes I made early on was overfitting my strategy to past data. I kept tweaking the parameters until it looked perfect in backtesting, but in reality, I was just optimizing for past conditions rather than future performance. Another common issue is ignoring things like slippage and real execution delays, which can completely change results in live trading. If you want to refine your testing process, you might find https://forextester.com/blog/tradezella-alternatives . What helped me the most was testing my strategy across different time periods and market conditions, not just cherry-picking the best-looking data. |
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| Author: | MelanieBriggs234 [ March 25th, 2025, 10:19 am ] |
| Post subject: | Re: Common mistakes in strategy testing and how to avoid the |
Interesting topic. I think a lot of traders focus too much on making their strategy look good in historical tests without considering how it will behave in real-time. Markets are always changing, and no strategy works perfectly forever. It’s like practicing for a sports game—you can study past matches all you want, but once you’re actually playing, unexpected things will happen. Having flexibility in your strategy seems just as important as having a good test plan. |
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