Trade Aptitude

Results of Monday’s Best S&P Futures Turning Points: No levels were presented. 

Today’s Best S&P Futures Turning Points (filtered out during CPI release): 

Buy 5183.00 stop 5177.25. Short 5177.00 stop 5182.75 if price drops below and retraces to entry. 

The World Index: (+100/-100) jumps from -25 to +31 with most major world markets Bullish.  

Catalysts: CPI @ 8:30. 10-year Bond Auction@ 13:01. 

Quick Tip: Slippage

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

For example, 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 had potential, and in a calmer market more likely. 

The takeaway here is that you need to start with a strategy that has a significant edge. But don’t be annoyed when you can’t duplicate the exact results. Aside from slippage you’ll also miss trades. Your performance will vary so expect that. 

Tired of trading alone? Join our team. We trade multiple strategies with edge in a live market every day. Click here for details and a special offer. 

Trade Fearlessly,

Mike Siewruk

P.S. Forward this blog to your trading buddies. Share in the wealth!