Five Minutes a Day – Result in Sight – Feb 25

The overnight wobbles induced by the Italian election saw the strategy enter a sell trade, only to stop out as early, erroneous reports from exit polls suggested the centre left coalition had control of the parliament drove markets higher. The Germany 30 finished below the strategy’s target price, but the trade was already closed.

The scorecard stands at minus 3 points for the month to date.With just three trades remaining, the result will fall somewhere between minus 36 index points and plus 94 index points.

Last night’s trade:

20120226 a dax prices

And the scorecard:

20120226 dax prices

You can read more about the Five Minutes a Day Trading Strategy here:

About michaelmccarthycmc

Chief Market Strategist - CMC Markets and Stockbroking Regular on ABC, BBC, Bloomberg, Channel TEN, CNBC, SBS and SKY
This entry was posted in Market, Shares, Stocks, Trading and tagged , , , . Bookmark the permalink.

2 Responses to Five Minutes a Day – Result in Sight – Feb 25

  1. Jason says:

    Given last night’s volatility and subsequent real entry and exit levels, can I suggest that you don’t actually trade this strategy as the actual profit and loss figures are different to -11. Even the +35 wins aren’t exactly that.
    I know you mention slippage in your original overview of the strategy but to suggest that every loss is -11 is not quite correct and yes I do realise that every trader will get more or less slippage, but I believe some account of slippage needs to be documented in your results.
    Even the last 2 days results for me have been -13 and -15, which is 6 pips worse off compared to 2 lots of -11. ie down 28 points versus 22.
    I believe you are offering a great insight into the workings of a mechanical and systematic strategy that has been thoroughly back tested and to do it even more justice, adding the real results would be ideal.
    Just a thought on what I’d say is a very positive and insightful blog.

    • Thanks for your thoughts Jason – I wrestled with this one. One of the aspects worth considering is that stop entry/loss orders are subject to slippage, where limit/target orders are not. Another is the one you point out – traders may see differing slippage effects, especially where there is a large difference in trade size. You make a valid point – and as you say, the risk of slippage is highlighted in the original and subsequent strategy papers. Its also true that a number of traders have taken this strategy and tweaked it, also leading to different results.

      Overall, I’m trying to test the strategy itself, and therefore report the targets as realised. In my view, this gives the fairest view of how the strategy performs. However, given your comments, I’ll mention this effect in the month end summary.

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