Slippage questions

1) What amount could the actual buy/sell price be off by? Cents? Dollars?

2) How should you account for slippage in backtests? Should the buy/sell price be offset by a random amount between a certain range to simulate slippage? What should this range be?

3) Is slippage less of an issue if you’re not a market maker where cents absolutely matter? Assume you’re simply automating a manual day-trading strategy.

Submitted September 27, 2020 at 09:50AM by JZcgQR2N

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