Weighing Execution Conditions On Trading Platforms
Execution conditions are everything. Depending on the nature of the strategy, transaction costs can make up 20% of your equity
Execution conditions are everything. Depending on the nature of the strategy, transaction costs (spread, commission) can make up more than 20% of your equity p.a. And that’s assuming that your desired trades get placed as you want them: in an environment with slippage / re-quotes they may not even get placed, which means you get NOTHING for your intellectual property.
So, before you even place one single trade, do some informed shopping for solid execution. It’s the single best investment you can make into your trading. And unlike producing a winning strategy (which is seriously hard), EVERYONE can find a good broker to trade with.
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I agree completely with Juan. It is very important to have a trading environment which is tailored to the requirements of your individual strategy or system. You should therefore be looking for a broker that understands your needs and has the flexibility to deliver a product that is appropriate for them.