The Daily Market Forecast... expect slippage

Friday’s Blog Results: The suggested short at 4380.50 ran for 15.75 points.

Today’s Lesson: Expect some slippage.  

One aspect of trading many people don’t consider is order execution. At first glance you may think “How hard could buying and selling be? Click a mouse!” Getting a precise price is not always possible, though.

For example, the other day I was live testing a new process whereby the entries and exits were set at different prices and quantities. Scale-in, scale-out. There were significant advantages… less risk, potentially greater reward.

My platform allows for most of the orders to be automated, but not all. This meant I needed to pay attention in real time to ensure all the rules were met. OK, can do. Unfortunately, price moved extremely fast with volatile swings making it impossible to duplicate all the benefits of the rule set. It was better, and in calmer markets likely more so.

The takeaway here is that you need to start with a strategy that has significant edge. But don’t be annoyed when you can’t duplicate the exact results.

Today’s Best S&P Futures Turning Points:

Short Level: Sell 4443.00 stop 4447.50.

Long Level: Buy 4371.00 stop 4367.25.

Trade well,

Mike Siewruk

P.S. Tired of trading alone? Need more quality setups? Learn how our team-based approach can accelerate your trading performance. Click here for FREE video training.