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Investor, Trader and Financial Educator As a long term investor/trader I have consumed hundreds of financial books and endured countless hours of self education. Hopefully my contribution through my channel will reduce the learning curve duration of many aspiring traders by providing the key information in a concise and enjoyable manner. https://www.youtube.com/channe... more »
Hi Shine,
That £70 is average, some are £150 some £40 (for example)
Commission is 0.10% which is £10 each trade - So £20 Open & Close.
The spreads as disclosed by the stocko reports range from 0.02% upto 1% for the smaller caps.
Does that make sense?
The UK spreads are however more, but the volume lies with the US market.
Hi, Gpacker
'The spreads as disclosed by the stocko reports range from 0.02% up to 1% for the smaller caps.'
I see you also opened a discussion on spreads. They sound incredibly narrow figures to me. Where can I get them! With small caps I expect to pay around 5% spread, (and it's nearer 10% with spreadbets), but only £6/trade with X-O. I know Paul recommends phoning spreadbets in to get a best price but for the amounts I put on I'd be too embarrassed to.
Look at the stock portfolio I gave as a screen shot from stockopedia which shows last weeks positions;-
The average is around 8 Bps which is 8 x 0.01% which is 0.08% x 10,000 = £8
Granted some are considerably more but the Market Cap and volume generally dictate spread.
I also use a certain volume requirement and minimum price so perhaps the reason why most small caps asking a higher spread cost are not included in the system.
Hi GPack, great thread - would be interested to hear how you get on as I'm looking to implement something similar through my spread betting account.
Could you please give some more detail as to how your positions (and stocks) are selected ? And how many open positions you have at a time?
Are you momentum trading breakouts (trend following) or as you say, 'swing -trading' (i.e. range trading) between certain resistance and support levels?
What's the methodology on setting your stop-losses?
Do you incorporate shorts or are you long only? A strategy with some shorts would provide a hedge against market.
Thanks !
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If you are using daily open/close prices for the backtest then I'm afraid your backtests are invalid. You will having missed being stopped out intraday.
Hi bwakem
I use the Hi and Low of the intraday price to confirm if a stop would have been hit.
Hi Nicobos,
I'm conscious of a wide audience on here so I'm not keen on divulging the exact selection criteria just yet other than the principles mentioned above.
I agree with the shorting aspect as a hedge and it may be something I consider in the future, but at the moment my focus is on long only.
For last year I have physically gone through the 600 charts and used the low tale of each candle to confirm if a stop loss is hit or not, a very long process but hopefully worth it in the end.
The trailing stop is not a fixed percentage, it a low tale of the 3rd to fifth last candle depending on the price action.
I completely understand why you would not want to divulge the specific criteria but an inkling into what your actual strategy is would be useful (I don't even think it sounds like swing trading ?!).
Otherwise it seems a bit of a pointless thread ! You are basically saying 'I have a strategy, have backtested it, seems to work and will try it out.' So what !?
There's not much to debate here other than saying 'Good luck!' and look forward to hearing the results.
ok thanks for the constructive feedback.....
I have given the broad criteria I used/use including some money management information, and I'm giving a demonstration of what the back test suggests for open discussion.
Not sure the debate is pointless but each to their own.
Be very careful with the changes in intra day spreads when you're trading on spread bet platforms - they can move quite a lot during the trading day stopping you out which the high/low data struggles to capture on back tests.
ok thanks Dmjram - I'll keep an eye out for that detail and see if I can capture the variance whilst I'm live....
Hi, I know this thread is from a while ago. I'm curious to know if you are still doing this and how it's playing out for you. Thanks
