As a trader, you don’t want to do the hard work of monitoring the screen all the time and analyzing price movements looking for trade setups. This manual way of trading can be extremely hard and even prone to mistakes based on emotional and psychological biases. Moreover, there is a limit to how much data…
Most of the backtesting done on this website is done in Amibroker (please read our Amibroker review to better understand the software). This page starts with a few articles related to that software: Trading platforms and software: Trading in different jurisdictions: Brokers and legislation: Execution and rebate in trading systems: Slippage in trading:
While Germany is by far the largest economy by GDP in Europe, several of its financial markets are actually smaller than those of neighbors France and the UK. However, Frankfurt, the financial capital of Germany, is a top trading center in Europe. Want to know about trading in Germany? Home to the Frankfurt Stock Exchange…
With a GDP of about 2.8 trillion dollars, France is the world’s fifth-largest economy and the second-largest economy in Europe, after Germany. It is home to the headquarters of the biggest stock exchange in Europe, so when it comes to financial trading, France is a popular clime for day trading and swing trading. Want to know…
Slippage is probably the enemy number one for short-term traders. What is slippage in live trading and how much slippage can you expect to have in live trading? What is slippage in real trading? Slippage in trading is a hidden cost that is difficult to quantify. It’s the difference between a theoretical price and the…
ETFs vs futures – what should you trade? EU residents are not eligible for trading most US-domiciled/registered ETFs. Because of this, EU retail clients and traders are looking for alternatives: Are US futures or EU ETFs viable options and trading vehicles for US ETFs? What should you trade – ETFs or futures? We explain the…
If you are serious about trading you should spend time on how to choose the best stock broker for you and what to look for. It’s an important decision, not only because of costs but also because of the security of your funds and assets. In this article, we look at how to choose the…
Is Interactive Brokers safe? I have been a customer at Interactive Brokers (IB) for the last 11 years, and on and off many years prior to that. I love IB as a broker, but my capital is at risk: Your assets in IB are not segregated but held in “street name” and thus you are…
Can European investors buy US ETFs? Is it possible to buy US ETFs for EU retail clients? No, since 2018 EU residents can’t trade US-domiciled ETFs because of EU legislation that most US-registered ETFs have not bothered to deal with. For most EU traders and investors this means US ETFs are not possible to trade…
This article is off-topic, but in my opinion quite important: Because of the strict regulation to clamp down on money laundering, small businesses are suffering. The regulation has unintended consequences. Anti Money Laundering (AML) rules and KYC International regulators, led by the EU and the USA, are increasingly taking steps to clamp down on money…
Commissions and slippage might ruin your trading strategies. The market offered a nice opportunity to show how bigger bid-ask spreads eat into your profits. This article covers the newly implemented 5 cents spread in certain stocks and how that has influenced my trading profits negatively. Why bid-ask spreads increased On October 3 in 2016 SEC…
Lately, I have done some research trying to develop some new daytrading strategies. I have tested many trading strategies that buy or sell at the open (OPG). The exit has been after two hours or on the close (MOC). An OPG trading strategy limits slippage. Likewise, a MOC trading strategy does the same. In this…
Trading is very difficult. Not only is it difficult to find profitable strategies, but you also have to overcome slippage and commission costs. Slippage is difficult to estimate. Commissions costs, however, are easy to calculate. Personally, I pay .001 per share in clearing plus ECN rebates and taxes/fees. So far in 2012, I have paid…
What is slippage in trading? Slippage is a hidden cost that is difficult to quantify. It’s the difference between a theoretical price and the price you get in real and live trading. What is slippage in trading? Slippage is the difference between fictional results when testing strategies, and the actual results in real life adjusting…
What is rebate trading? The aim of rebate trading is not to actually make money from the movement of the price of the asset (at least not only that), but to receive money from the ECN (Electronic Communication Network). So yes, the headline is correct. It is actually possible to have a net income from…
(This piece is a rewrite of what I sent to several newspapers before Christmas 2011) The European Commission has suggested a ”banking transaction tax”. In November 2011 they asked the representatives at the Council of the EU to express clear “support for the shift of tax burden from low-income population to the financial sector”, according…
