Backtests lie. Live trading doesn't

Summary

• The post discusses the common problem in algorithmic trading where strategies that perform well in backtests fail in live trading environments.
• The author's thesis is that the gap between backtest and live performance is a significant, often underestimated issue, caused by factors like slippage, overfitting, and market regime changes.
• Quality assessment: This is a discussion thread based on anecdotal experience, not research or due diligence. It is noise from a direct investment perspective but offers qualitative insights into the challenges of algorithmic trading.