Why there is difference in paper trade and backtest result?

Hello @Streak

Kindly please explain how is it possible?? Testing on the same range and getting different Outputs. the results are not matching!!

I have been doing paper trading and same time backtesting. I am getting different results on paper trading and in backtest.

Thank you in Advance.

paper trading says its “sold/shorted” but backtest dosnt show anything so maybe you bought instead of shorting in backtesting?

Kindly share the link to the strategy and the order log for the trade to [email protected] so that we can analyze and assist you with this further.

Use the instructions in the below blog to generate your strategy link

Also, refer to the below link to learn how strategy order logs are downloaded(follow the instructions in the GIF)
https://help.streak.tech/deployed/#orderlog

1 Like

Positive/Negative Slippage.

hello @Muskan_Anjali

  1. Kindly note that the P&L in the backtest will only reflect the completed trades and will not reflect the profit or loss of an on ongoing trade. As backtest is used to check the performance on the historical trades only. Also, P&L in the backtest can be calculated only after the exit price is established based on the exit conditions in the strategy created.

  2. In your case, the P&L reflected in the backtest (i.e, -12,000 INR as loss) is calculated only based on the 3 completed trades.

  3. As explained above, P&L in the backtest can be calculated only after the exit price is established based on the exit conditions in the strategy created. However, in Paper Trade for NRML/CNC trades, the P&L is a reflect of the executed trades and the ongoing trade as well. In Paper Trade, the P&L displayed will be dynamic as it is calculated based on ongoing LTP. Therefore, the P&L of Backtest and Paper Trade cannot be compared till the trades are closed, although the P&L in both are correct, but will have differences for the reasons explained above.

Hope this helped.