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Broker latency can be negligible for position trading while it should be taken into consideration when the position holding time is relatively small.
<div style="background-color: #E5F6FF;">Example : Strategy 1 average position holding time is 30 minutes. Strategy 2 average position holding time is several seconds (scalping). In the first case latency factor is negligible, so strategy 1 backtesting results will be more or less the same as live trading performance. However, in case of strategy 2, broker latency can change live trading performance dramatically compared to backtesting. </div>Generally, the higher average profit per position and average position holding time are, the more accurate backtesting results are.
==Backtesting vs Live Trading==
