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minimizing impact of transaction costs

Posted: September 28th, 2011, 11:53 am
by rickyvic
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?

minimizing impact of transaction costs

Posted: December 12th, 2011, 8:03 pm
by prfj
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.