Difference in streak back testing VS Paper trading VS Live Trading

@Streak @Krishnendu/ experienced folks, I have a strategy which is defined in streak, the only variable piece I See is using MTF, but when I run the back testing and try to match the same signals with Live trading / paper trading the trade entry exit signals doesn’t exist in live trading, similarly there are trade entries in back testing results which are not there in Live trading, I am confused now on what is the accuracy of the system VS what is not can you please help if there are any reasons to it…? or if any other users has observed similar behavior…? now with these deviations I end up validating on daily basis to see if my trade is accurate vs not and totally confused.

Hey @dileep_raj

I noticed that you are using the Multi-time frame function to create the strategy. Kindly note the Multi-time frame (MTF) function by design checks your conditions on partial candles as the larger time frame candles take more time to be completed. Due to the use of partial candles, the Multi time frame results can be unverifiable on the charts. Also, while using the MTF function in backtesting, it can have a look-ahead bias as the data for a higher timeframe is already available. Hence we have also added a disclaimer highlighting the same on the Create page. Click on the below link to learn more about this:
https://help.streak.tech/create_advanced/#multi-timeframe-functions

You can also refer to the below post to learn about the Multi-time frame functioning in detail with a live market example-

If you want to avoid the look-ahead bias in the backtest and get verifiable results in the live trades, you can use the Multi-time frame completed function of Streak, instead of the multi-timeframe function. Multi-time frame completed function by design checks the conditions on the completed candle of the larger time frame.

Furthermore do note that backtests and Live strategies/Paper trading P&L cannot be exactly the same, as in Live trade real-time market slippage/liquidity is present whereas in backtest only gap up/down slippage is accounted for, and for paper trading as well, slippage is assumed. This might affect the trade price to be different than backtest and which in turn shall affect the difference in PnL.

In the backtest an entry price is assumed as the next candle Open, backtest cannot predict the real-time executed price. Also, note that the Stoploss SL, Target profit TP and the Trailing stop loss (TSL) are checked on an LTP basis in live trading, whereas in the backtest the data is checked on a candle OHLC basis and the preference of the OHLC is based on certain assumptions. Please click on the below link to know the assumptions taken during backtesting:
https://help.streak.tech/backtest/#backtest-assumptions