A trading strategy was backtested as "hold whenever the trend signal is ON" (no stop), then deployed live with a fixed percent-from-entry stop-loss overlay added for safety. The continuous backtest showed the stop rarely firing, but live it fired twice in six days and realized a large whipsaw loss. Root cause: in a continuous simulation, the position's entry price dates back to the signal's start (often years earlier), so an entry-anchored stop is far out of the money and almost never triggers — the sim silently understates the stop's cost. A real account entering mid-trend has a fresh anchor, so the same stop behaves like a tight stop and churns.