Backtesting exotic pairs realistically: spread, sessions, and walk-forward Every retail platform will let you backtest $USDZAR with a single

Backtesting exotic pairs realistically: spread, sessions, and walk-forward Every retail platform will let you backtest $USDZAR with a single pip spread and perfect fills. That is not how $USDZAR trades. On low-liquidity exotics, spreads blow out during Tokyo overlap and rollover, and slippage can single-handedly turn a winning strategy into a 40% loser. In this guide, we’re going to cover the three pillars of realistic exotic backtesting: spread modeling, session filtering, and walk-forward optimization with limited data. Pillar 1: spread-aware slippage Stop using a static 1-pip spread. Log your broker’s actual spread history for $USDZAR and $USDMXN - ideally by...