When simulating a strategy by backtesting, it is important to account for price slippage and exchange fees in order to more closely replicate real-world conditions. The Backtest-Only Settings under Parameters allow you to configure these values, which only affect backtest results and are not used in live trading mode.
The available fields are:
- Slippage: The acceptable deviation in price when placing an exchange order. For example, if the bot attempts to buy at $1.00, and slippage is set to 0.001 (0.1%), the lowest acceptable fill price would be $0.999.
- Maker Fee: This is the fee your exchange charges for putting orders on the book. In order words, the fee typically paid for limit orders.
- Taker Fee: The fee charged by your exchange for taking orders from the book or market order.
In live trading mode, these fields have no effect as you will pay the fees according to your exchange's schedule. Some exchanges charge fees in quote currency, while others in base currency. In backtest results, fees are always taken in quote currency.