The 5 Backtesting Mistakes That Keep Traders Losing MoneyÂ
Most traders fail not because of their ideas but because their backtesting is broken.
Our upcoming HTA Strategy Lab fixes this. Be the first to access it.

If your backtests look amazing, but your live trading results tell a different story youâre not alone.
The Top 5 Mistakes
1ď¸âŁ Overfitting to Past Data
Tweaking until a strategy looks perfect but it only memorizes history, not real market behavior going forward.
2ď¸âŁ Ignoring Slippage & Commissions
Backtests assume perfect fills and zero costs, but in live markets, fees and slippage kill âperfect systems.â Mistakes/bad fills will happen in real market environments.
3ď¸âŁ Using Bad or Insufficient Data
Testing only a short time period creates false confidence. Real strategies must survive multiple market cycles. The longer the testing period, the better. Data, data, data!Â
4ď¸âŁ Cherry-Picking Trades
Skipping losses or testing only in bull runs leads to equity curves that collapse when conditions change. Markets can change on a whim, will your strategy react fast enough?
5ď¸âŁ Not Stress-Testing
If you donât run Monte Carlo, walk-forward, or prop firm-style tests, you donât know if your system can survive.
The statsÂ
The numbers donât lie. Most retail traders loseâand bad backtesting is a big reason.
-
 Day traders often suffer severe losses in their first monthsâand many never reach profitability, warns the U.S. SEC.
-
Individual (self-directed) investors underperform active traders the most largely due to costs and behavior, per landmark research by Barber & Odean. (Haas Faculty, ScienceDirect)
-
Prop firm reality check: independent industry roundups suggest only ~5â10% pass evaluations, and ~1% end up with a payout. (Finance Magnates, QuantVPS)
HTA Strategy Lab helps traders overcome that currently holds them back

Submit trade idea
Have a trade idea but need to validate it to put it in the markets? We help you build a strategy that fits you as a trader.

Backtest the idea
We will provide a full dataset and backtest of the current strategy on one timeframe and instrument.Â

Get coaching
Jump on a one-on-one call to get an overview of your system and find ways to optimize and implement with our coaches.
Â
Â
No more guesswork. Just clarity. Just confidence.
Â



Be First in Line for HTA Strategy Lab
Get our free PDF: "The 5 mistakes Traders Make when backtesting".
Early access to HTA Strategy Lab