In this case the latency is not a big issue because you’re trading on day bars. So if it takes you a few minutes to get into the position, that seems fine. (But that’s something you’d want to measure and track.)
In these strategies you’d be holding a position every bar (long or short). So at the end of the day, once the day bar closes, you’d compute your signal for the next day and then enter that position. If you’re going to do stop-losses that’s something you’d want to backtest before implementing.
Overall, you’ll want to start trading some amount of capital (may be 0, which is called paper trading) using any new strategy and track its performance relative to your backtest results + live results. A discrepancy with backtest results might suggest overfit (most likely) or market conditions changing. Discrepancy with live results might be a result of order latency, slippage, or other factors you haven’t accounted for.
In this case the latency is not a big issue because you’re trading on day bars. So if it takes you a few minutes to get into the position, that seems fine. (But that’s something you’d want to measure and track.)
In these strategies you’d be holding a position every bar (long or short). So at the end of the day, once the day bar closes, you’d compute your signal for the next day and then enter that position. If you’re going to do stop-losses that’s something you’d want to backtest before implementing.
Overall, you’ll want to start trading some amount of capital (may be 0, which is called paper trading) using any new strategy and track its performance relative to your backtest results + live results. A discrepancy with backtest results might suggest overfit (most likely) or market conditions changing. Discrepancy with live results might be a result of order latency, slippage, or other factors you haven’t accounted for.
I see. Thanks for providing the additional info!