Scott McNab wrote:
I was listening to the recording from last night (can’t believe I forgot!) and am hoping someone can please clarify for me the bit about asx moc systems not being worth it (was raised when Nick was speaking with Said)…I may be missing something crucial…the bit about even though commissions are factored into the backtest it still may not be worth it due to drag ?
Basically we are not getting good fills on the ASX especially when our buy orders are the low of the day. I haven’t been monitoring the slippage but I am going to from now on to see what this is actually costing me compared to the backtest. But basically what Nick was saying was that if the brokerage and the profit end up being equal or worse for a system he would rather put his money elsewhere. At least that was my understanding.
I stopped my ASX MOC system for exactly that reason. Although the backtest accounts for brokerage, when the bad fills come into play as well you are running the system at about half what you expect. Might as well run it on a system with a better return.
