Whipsaw
A quick false signal: a strategy enters on a crossover or breakout, the move immediately reverses, and the exit fires at a small loss — sometimes repeatedly. Whipsaws are the tax trend-following pays for its insurance against big declines. Wider thresholds, slower averages, or entry/exit asymmetry (enter at +5%, exit at 0%) all trade fewer whipsaws for later signals.
Run a strategy that uses this yourself — free →
Build it from blocks (or type it in English), backtest it on 5.5 years of minute data in seconds, tweak any parameter, then paper trade it on live data. No card, no broker needed to start.
Related terms
Trend FollowingA strategy family that buys assets in established uptrends and steps a…Moving Average CrossoverA signal generated when a faster moving average crosses a slower one —…
Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-07-17, $10,000 starting capital, no margin, fees and slippage not modeled) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.