Testing the 5-10-20 Trend-Following Strategy [View article]
>> If you've never worked with mechanical trading strategies, something like this analysis looks great.... on paper. A lot can depend on what you ASS-U-ME: How much capital is required? What is the commission rate? What the slippage
I attempted my own custom mechanical trading strategy this past year. Unfortunately, I deployed in Sept of 07. I made nice cap gains through December, but then it all fell through the floor along with the rest of the market. One problem I had is lack of time, so my "system" suffered serious slippage, both on buy & sell. The original idea was to replace emotions with computer algorithm, but that was better in theory.
To top it off, I payed a mountain of cap gains taxes to the IRS for 2007. Only to loose all that, and (much) more 2008.
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>> If you've never worked with mechanical trading strategies, something like this analysis looks great.... on paper. A lot can depend on what you ASS-U-ME: How much capital is required? What is the commission rate? What the slippage
Dec 03 18:09 pm
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All Comments by bigmoney »Testing the 5-10-20 Trend-Following Strategy [View article]
I attempted my own custom mechanical trading strategy this past year. Unfortunately, I deployed in Sept of 07. I made nice cap gains through December, but then it all fell through the floor along with the rest of the market. One problem I had is lack of time, so my "system" suffered serious slippage, both on buy & sell. The original idea was to replace emotions with computer algorithm, but that was better in theory.
To top it off, I payed a mountain of cap gains taxes to the IRS for 2007. Only to loose all that, and (much) more 2008.