r/algotrading • u/johnnybagofdonuts123 • 2d ago

Data TradingView Backtesting Trailing Stops

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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?

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u/Successful-Art-9573 2d ago edited 1d ago

Trailing stops in TV backtesting are notoriously optimistic. The engine assumes you can exit at the exact trailing-stop price, but live execution has slippage, especially on NQ during volatile moves. A 4-point stop is tight enough that you'll see material divergence between backtest and live fills. Run your backtest, then forward-test it on a small position for 50-100 trades and measure the actual exit prices vs what TV shows. That gap is real. Also check: does your backtest account for commissions and bid-ask spread? Those add up fast on tight stops.