As a 'computer geek' I have played around with a few bits and pieces and come up with a system which does the following for same day trading on the Dow.
Use previous days' data it tells me 2 figures: to enter a trade long if it reaches one figure and short if it hits the other figure (either up or down). I will then leave the trade until the end of the day when that 'daily' bet ends.
These are my 'stupid' questions:-
Does the spread on a daily always surround the market price/value? If not what is the point of being able to place an order to execute when it hits a figure (and I'm at work) if you don't know that the market and spread are aligned?
If my target price is only hit for a minute will my automatic order still get placed or will there be so much delay on the spread updating that while the market may hit a point the spread will never reach it?
Can anyone help please?
On paper I am able to predict ~75% trades correctly as follows for last 12 months:
Result- pts up or down ( have adjusted results by ~10 pts each trade out of my favour to account for BAD spread)
-40 20 10 50 20 -40 20 30 0 20 -40 40 30 5 -50 0 40 50 30 0 -40 30 60 70 0 60 50 -40 60 -50 -30 70 50 70 -30 -100 5 10 50 20 -20 -20 0 30 80 30 20 80 0 80 60 40 30 30 40 -40 20 0 20 20 60 -20 100 0 -110 0 -10 -30 0 10 50 40 50 -40 80 -20 40 20 40 90 0 -40 120 0 10 -30 120 70 40 10 -40 -10 80 60 110 -30 -90 90 60 10 -80 60 40 10 20 10 30 20 -20 30 160 140 80 90 50 90 -110 -90 -60 -40 90 -40 140 -130 10 10 20 0 120 10 120 20 20 0 10 10 120 -40 20 120 -40 120 -60 -40 140 -100 40 80 80 10 30
Use previous days' data it tells me 2 figures: to enter a trade long if it reaches one figure and short if it hits the other figure (either up or down). I will then leave the trade until the end of the day when that 'daily' bet ends.
These are my 'stupid' questions:-
Does the spread on a daily always surround the market price/value? If not what is the point of being able to place an order to execute when it hits a figure (and I'm at work) if you don't know that the market and spread are aligned?
If my target price is only hit for a minute will my automatic order still get placed or will there be so much delay on the spread updating that while the market may hit a point the spread will never reach it?
Can anyone help please?
On paper I am able to predict ~75% trades correctly as follows for last 12 months:
Result- pts up or down ( have adjusted results by ~10 pts each trade out of my favour to account for BAD spread)
-40 20 10 50 20 -40 20 30 0 20 -40 40 30 5 -50 0 40 50 30 0 -40 30 60 70 0 60 50 -40 60 -50 -30 70 50 70 -30 -100 5 10 50 20 -20 -20 0 30 80 30 20 80 0 80 60 40 30 30 40 -40 20 0 20 20 60 -20 100 0 -110 0 -10 -30 0 10 50 40 50 -40 80 -20 40 20 40 90 0 -40 120 0 10 -30 120 70 40 10 -40 -10 80 60 110 -30 -90 90 60 10 -80 60 40 10 20 10 30 20 -20 30 160 140 80 90 50 90 -110 -90 -60 -40 90 -40 140 -130 10 10 20 0 120 10 120 20 20 0 10 10 120 -40 20 120 -40 120 -60 -40 140 -100 40 80 80 10 30
