The Impacts of Slippage on Trading Strategies

There's a lot of days where you'll have huge price wicks, where it just looks like the market dropped by 30 or so % and then rebounded immediately. It does do is make it more difficult to set stops or have strategies with defined risk. But i think it's just something to be aware of if you're doing back testing, or trying to set your transaction costs... I would definitely be generous with your slippage.

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