Accurate backtesting and paper trading are absolutely necessary to improve your strategy. Mudrex already provided traders with verified, accurate, historical data for a large number of tokens. To improve your testing further, we have now added the ability to add a static per trade fee and a max slippage to each trade.

You can apply fees or slippage to both paper trading and backtesting.

How does it work

Fee: Fee is a charge that the exchange puts on you every time you do a trade. To simulate fees, we deduct the fee amount from your balance just before the trade happens. Every buy/sell order leads to a deduction of fees.

Fees on most exchanges vary from 0-0.75%

Slippage: Slippage is the difference between the assumed execution price and the actual execution price which may result either due to illiquid markets or because of time delay in placing an order.

In the real world, slippage can be both positive and negative and depends on a lot of factors. On Mudrex, when you setup slippage, its the worst case slippage i.e. we always assume the price moves against you. This helps you be more cautious while testing.

Slippage typically varies from 0-0.1%

How to use:

To add a fee or slippage, simply

1. Open the backtest/paper trade console

 

2. Enter a fee amount and a slippage amount as a sum in the 'fees' entry (Max 1%) 

 

3. Start the paper trade /backtest

 

4. Check the PnL which includes both fee and slippage for the trade

Example:

Below is are 2 backtest runs, one without fees and slippage and the other with. You can see the difference accurate testing can give by yourself!

Customise your trading strategies easily, only at Mudrex. Join Mudrex today!

 

Was this article helpful?
6 out of 6 found this helpful