Spreadbetting TA

[Adester]

Heah all,

As a novice spreadbetter I am on the arduos journey of creating a trading strategy. I am obviously at the stage of acquiring knowledge, which only produces the results once applied.

Would anyone know what time-frame chart would be the best to use on an Futures based stock trade? I have heard that the longer the timeframe the less accurate for a month or two indicator of trend.

Any advice would be greatly appreciated, and the laws of reciprocation would ensue.

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[FetteredChinos]

time-frame depends entirely on your attitude to risk

longer time frame.. more accurate signals generally as there is less "noise". BUT there is a trade off in that if you get a couple of wrong 'uns, then you have a losing month, and drawdowns are larger

as for trading off say, 5 or 15- minute charts, then as long as you have a net positive system, then you would be unlikely to have a losing month and drawdowns would be less.

however, the shorter the time frame the harder, and more stressful it is..

in my opinion, of course, others may view things differently.

if you are spreadbetting, then keep away from intra-day attempts..

largely doomed to failure..

FC

 

[Adester]

Thankyou very much Fettered.

I agree with your advise, and will stick away from Intraday. I assume longer time frames are 3-6 months?

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[FetteredChinos]

erm no, i was thinking using weekly or daily bars.. but yes, if trend following, you may end up holiding positions for a few months..


indices tend to move in 9 month cycles or so....so holding longer than this probably isnt too wise..

 

[Adester]

What if I'm trading a particular stock