#TradingStrategyMistakes

The development of a trading strategy incorporating RSI and MACD indicators yielded promising backtesting results, appearing highly successful. 📈💰📊 However, upon implementation in live trading, the strategy underperformed significantly. 📉😟🤔

The discrepancy can be attributed to several factors overlooked during the initial assessment: slippage, unforeseen market reactions to news events, real-time data latency, and the influence of collective market behavior. 🔍📰⏰👥

The key takeaway is that a strategy with a lower win rate but a favorable risk-reward ratio can outperform a strategy with a higher win rate. 🏆⚖️💡 The true measure of a successful strategy lies not solely in its win rate, but rather in its ability to generate positive payoffs while effectively managing risk. ✅📈🛡️