Hi quantopians, I want to know - what is the difference between daily and minute backtesting? Which of them are more approximate to the Paper Trading? For example I have developed one algorithm and want to see how it will perform - for see more real-like performance should I use daily or minute backtesting? And why everybody use daily backtesting (as I can see in community shared algo)?
Yea a lot of questions - but it is important to better know this platform
Thanks
Daily backesting is quite quick and you can test over a 10 years period very easily. I think the results are not very meaningful, though. You would have to be VERY patient to paper trade a daily algo. I've been paper trading this algo minutely for more than a week - so far it's down 22.4% !
P.
Different strategies lend themselves to different timeframes. For instance, if your strategy uses a signal that only updates once per week, then minutely trading isn't very valuable to you. But if your signal updates every minute, then minutely trading is incredibly powerful.
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