Slippage — what it is and how to use it in trading
Definition
Slippage is the difference between the price at which a trade was expected to execute and the price at which it was actually filled.
How it works in the builder
In backtest settings it's set as a percentage of price and subtracted from every trade's result, to bring the simulated outcome closer to real execution; a realistic value is 0.05-0.2% for liquid assets.
Typical use
Grows with volatility and order size relative to the instrument's liquidity — sharp news-driven moves or trades on illiquid instruments produce noticeably more slippage than a calm market on a top pair.
Common pitfalls
A backtest with no slippage assumption overstates results — a flat percentage can't be relied on during abnormal-volatility moments, when real slippage can turn out several times larger than the assumed average.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.