@Streak
I have checked some backtest result of a DYC strategy Month wise from Dec23- May24 and quarterly from Dec-Feb and Mar-May (Streak Limit)
Resulting … month wise Profit but quarterly Loss
DEC 58068
JAN 12782
FEB 5089
MAR -22394
APR 24594
MAY -11613
TOTAL 66526
Dec-Feb 73646
Mar-May -74322
TOTAL -676
Please clear why is this difference happening ? and if I pick the monthly strategy will the backtest and future result remain same (±5% is accepted)
Thank you
Parvinder Singh
Hi @Parvinder_Singh1
Backtest results per month and qtr cannot be added directly, as depending on conditions, the first few trades can differ due to during qtr and monthly period as monthly backtest only fetches month data and for first few trades sufficient data might not be available for the indicator to get calculated.
Having said that, most signals will match leading to around the same total pnl with a difference only from the first few pnl.
Further, it’s important to note that we cannot predict if backtesting results will match future outcomes. This is because backtests, live strategies and paper trading P&L can never be exactly the same. In live trading, real-time market factors such as slippage and liquidity play a role, while in backtesting, only gap up/down slippage is considered. Similarly, paper trading assumes a certain level of slippage. These factors can cause trade prices to differ from backtested prices, ultimately impacting the P&L difference.