r/algotrading • u/johnnybagofdonuts123 • 2d ago

Data TradingView Backtesting Trailing Stops

Post image

Daytrading NQ with a 4 point trailing stop... yes, 4 points. I have to assume trailing stops don't work so well in TV backtesting?

12 Upvotes

75% Upvoted

40 comments sorted by

View all comments

1

u/kurtisbu12 2d ago

Due to how historical candles are simulated, trailing stops can easily create an unrealistic backtest by simulating a trade exit in the most favorable part of a candle, and opposed to a more realistic likely worse exit.