Why Slippage Matters in NQ Trading

A strategy can look profitable on a chart and still struggle in live trading.

One reason is slippage.

Suppose your backtest assumes you buy NQ at exactly the price shown on the chart. In live conditions, your fill may be worse because of market movement, liquidity, order type, or execution latency.

This matters especially during fast markets and economic announcements.

When testing a strategy, I want to account for:

• Commissions and exchange fees.

• Realistic entry and exit fills.

• Slippage under different conditions.

• The effect of stop orders and market orders.

A small execution disadvantage can have a meaningful impact across many trades.

The goal is to evaluate a strategy under realistic conditions, not ideal chart conditions.