Hi, Suppose we build a strategy on equities and tested it in live market for some time and got good results in cash segment. If we want to scale up and move to Futures for increased size and liquidity, what will be the changes to slippages and volatility in futures segment as compared to cash segment. Will it be extremely significant for intra day strategies or can we ignore it. What is your experience in this regard?
It also depends on type of strategy I mean if it is based on artibrage/ pair trading/ scalping,timeframe used, how one enter and exit into strategy( market orders/limit orders stoploss points) along with others. If it is directional and higher time period is involved then should not be much issue, I opine.
oh sorry, I missed to mention that on original question.I was looking for opinion on directional strategies and holding period will be in hours. Strictly limit orders only. Thanks for the reply. That was helpful.