Befriend the Trend Trading Message Board

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Strategies & Market Trends : Befriend the Trend Trading

SPY 671.40

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Dec 17 4:00 PM EST

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To: Dr. Stoxx who wrote (8526)	6/26/2000 9:00:00 AM
From: booters	Read Replies (2) of 39683

I can understand your thought that the system must trade a great deal on a 3min time frame but not really. The system is trading on average a little less than 2 times per day in the stocks that it works properly in. I trade for 1 cent per share so commissions are not an issue. As for trade size I always do testing based on 100 lot. Then you can always figure returns based on some multiple of that. Profits in the backtest are running slightly better than 33% per month on investment. What I do not know yet is slippage for an extended period. My experience for the last week and a half has been excellent, virtually no slippage at all, but I am trading NYSE stocks that move a little slower than most of the NASD stocks you are following. I still have not had time to write the computer code needed to test this over a broader spectrum and so have limited backtesting ( 6 months on 3 stocks). But, doing the testing by hand does give you an intimate knowledge of what is going on with all the indicators. I am convinced the combination of the MACD can be used to even greater success if a few other variations are tried. It may even be a simple as using the MACD as the primary signal and the MA's as the filter instead of the other way around. For now I am pleased but do look forward to some extensive testing soon, hopefully. boots

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