Hi all,
I just want to share something that I believe could help some traders transition from negative to positive results.
A few months ago I found something that looked like a viable edge for a daytrading system. Backtested manually and got great results so I decided to forward test it with microlots.
After 300 real trades executed manually (tested for 3 months, avg 6 trades per day on EUR/USD) with slipagge and comissions (I trade with an ECN Broker) the net result was 0.15 R. Meaning that after close to 500 hours of screen watching, waiting for my setup and execute it to the best of my ability, my account was exactly at the same point where it started....
The thing that made an impression on me was that the system produced profits, but the commissions were equal to them. After realizing this I started researching for other brokerage options and found a broker offering more liquidity, tighter spreads and more importantly the commission is almost 50% less.
Applying this commission scheme to my results (assuming the same execution and slippage) my system would have produced a net result of 32R in a 3 month period.
I remember reading somewhere that many of the legendary floor traders would be net loosers if they traded with "retail" conditions. At the time it sounded like no sense to me, but no so much now...
This has a much lesser impact for trading higher timeframes, but for daytrading I now believe could be the difference between red and black numbers.
I'm still puting the pieces together but I hope that this small observation might help some other traders.
I just want to share something that I believe could help some traders transition from negative to positive results.
A few months ago I found something that looked like a viable edge for a daytrading system. Backtested manually and got great results so I decided to forward test it with microlots.
After 300 real trades executed manually (tested for 3 months, avg 6 trades per day on EUR/USD) with slipagge and comissions (I trade with an ECN Broker) the net result was 0.15 R. Meaning that after close to 500 hours of screen watching, waiting for my setup and execute it to the best of my ability, my account was exactly at the same point where it started....
The thing that made an impression on me was that the system produced profits, but the commissions were equal to them. After realizing this I started researching for other brokerage options and found a broker offering more liquidity, tighter spreads and more importantly the commission is almost 50% less.
Applying this commission scheme to my results (assuming the same execution and slippage) my system would have produced a net result of 32R in a 3 month period.
I remember reading somewhere that many of the legendary floor traders would be net loosers if they traded with "retail" conditions. At the time it sounded like no sense to me, but no so much now...
This has a much lesser impact for trading higher timeframes, but for daytrading I now believe could be the difference between red and black numbers.
I'm still puting the pieces together but I hope that this small observation might help some other traders.