Costs inside a backtest
Add spread, slippage, fees and funding to a test and watch the result change sign.
Module 15 of 26, Testing an idea honestly before you use it. Lesson 5 of 8, about 18 minutes.
The takeaway
Charge real costs on the way in and out, or your backtest tells you nothing about real trading.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
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General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.
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Related lessons
- The hidden costs: spreads, slippage and fees
- Profit and loss (P&L)
- Liquidity: why some things cost more to trade
- How your order actually gets filled