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rickyvic
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Posts: 22
Joined: February 25th, 2011, 4:56 pm

minimizing impact of transaction costs

September 28th, 2011, 11:53 am

I am new to short term intraday strategies 1min-5mins.My issues:1) I was interested in learning how to reduce the impact of trading costs (mainly bid-offer, do not count slippage for now) given a return forecast.2) I also find hard to get positive returns after costs even though the predictability of expected returns is pretty high.3) Is it a matter of finding the right trading rules or that should not matter as a strategy should be profitable without the help of any smart trading decision rule, so I need to go back to the drawing board?
 
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prfj
Posts: 19
Joined: December 11th, 2011, 10:36 am

minimizing impact of transaction costs

December 12th, 2011, 8:03 pm

1) you could look at taking similar markets but with a smaller % bid/ask spread, eg. FAS as opposed to XLF (nysearca), but that's just a start3) you would probably need to get as many aspects in your favor as possible for it to work.
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