In algorithmic gold trading, many traders focus heavily on strategy logic, signals, and backtest results while overlooking transaction costs. These costs are often treated as minor or fixed, but in reality they are dynamic and can significantly impact profitability. Even a strategy that looks strong in testing can fail in live trading if costs are not properly accounted for, gradually eroding any statistical advantage.
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Because backtests often underestimate real world costs like slippage and spread changes. Your edge might be too small to survive actual execution conditions.