Backtrader set_slippage_perc: Configure
Your backtest shows a 20% profit, but your live account loses money. Why? Because your simulation ignored the friction of real market execution. If you ...
Your backtest shows a 20% profit, but your live account loses money. Why? Because your simulation ignored the friction of real market execution. If you are using the backtrader setslippageperc method, you are taking the first step toward fixing this disconnect. Most traders run their strategies with zero slippage. They assume every order fills at the exact price shown on the historical chart. This is a dangerous illusion. In reality, market orders often execute at the next available tick, which can be worse than your signal price. By configuring realistic slippage in your Python backtesting environment, you stop overfitting to noise and start preparing for actual market conditions. Slippage is the difference between the expected price of a trade and the price at which the trade is actually executed. It occurs due to market volatility, liquidity gaps, and the time delay between order placement and execution. In a perfect backtest, your strategy buys at the close of a bar. In the real world, that order sits in the queue until the next bar opens. If the market gaps against you, your entry price is worse.