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Quantitative Finance · Glossary

What is Sim-to-live reconciliation, shadow trading?

Also known as: sim-to-live reconciliation · shadow trading

Definition 19.1 Research Craft: Predictors, Backtests, Measurement, Portfolios · Chapter 19 — Simulation Versus Live

Sim-to-live reconciliation is the systematic comparison of a strategy’s live orders, fills and P&L with what its simulator produces on the same market data and the same signals. Shadow trading runs the simulator in parallel with live trading, on the live feed, so that the comparison is available every day.

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