UK basket trades

Dec 25, 2016
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#1
I have an algorithm which requires to trade basket of stocks (20-30) at close of day in UK stock market. I have been comparing the UK stock trades costs. They are much more expansive than US. For example IB is charging 6GBP per stock, which will wipe out my profits.
Is there a UK brokerage which will allow basket trades lower commission
 

tomorton

Well-known member
Feb 28, 2002
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#4
Algo is intended to hold for a long period for 3-6 months. However there are additional adjustments within this period like buying same set of stocks to increase or decrease the exposure.

If you hold so many stocks for so long, even with a proportion of rotation, surely the £6 per trade overhead will become negligible?
 

malaguti

Well-known member
Nov 3, 2009
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#6
I have an algorithm which requires to trade basket of stocks (20-30) at close of day in UK stock market. I have been comparing the UK stock trades costs. They are much more expansive than US. For example IB is charging 6GBP per stock, which will wipe out my profits.
Is there a UK brokerage which will allow basket trades lower commission
Try DeGiro, £1.75 per deal. cleans the floor with IB
 
Dec 20, 2016
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#8
Haha! Dejavu! Thats exactly a strategy I used from March to June this year. I opened 28 trades at 4:25pm (UK Stocks). My aim was to sell them all the day after for an overall win but some I would add to to increase exposure. Worked like a charm.
 

tomorton

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Feb 28, 2002
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#9
Haha! Dejavu! Thats exactly a strategy I used from March to June this year. I opened 28 trades at 4:25pm (UK Stocks). My aim was to sell them all the day after for an overall win but some I would add to to increase exposure. Worked like a charm.

Interesting because its an unusual approach.

What were your criteria for selecting your targets?
 
Dec 20, 2016
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#10
Hi Tomorton . If you've read any of my previous post, you may have noticed that I am a firm believer that any type of financial trading is gambling and therefore I am always coming up with systems that take advantage of the random principle. I simply chose every ftse 100 company where the price was under £5. That was it, that was my criteria. I make sure that I don't add any complexity because I firmly believe that you cannot predict the unpredictable. Anyone that thinks they can predict where the market is going in even 5 minutes let alone a day or a year is simply fooling themselves. Anyway, I did this again and again for months. Opened 28 deals, closed everything over a 2% gain the next morning, then keep an eye on the rest throughout the day with the aim of closing more at a minimum 2%, then add to losers at 4:25pm. Eventually everything is closed and then I start again. It worked extremely well. Eventually I moved on to my next system. As I said, I come up with them all the time and they all make money. One thing I must stress, I gamble with money I can afford to and even expect to lose. This attitude gives me the balls to try everything. My current systems are just as daft and make loads of money!
 
Likes: tomorton

tomorton

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Feb 28, 2002
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#11
I love it. But I have absolutely no idea why it made money.

The market was flat, the shares selected were random, the buying timing was random, you didn't short anything, you added to losers and cut the winners.

Still, the object is to make money and you did, so well done you!
 
Dec 20, 2016
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#12
I love it. But I have absolutely no idea why it made money.

The market was flat, the shares selected were random, the buying timing was random, you didn't short anything, you added to losers and cut the winners.

Still, the object is to make money and you did, so well done you!
Hi Tomorton, spot on! Yet again I prove that everything people believe about the markets is wrong. You can study charts forever, add whatever silly indicators you want, listen to all the news, place your trade and.......lose! The market is random, you cannot predict the unpredictable, don't even try, come up with a system that takes advantage of volatility and that's all and you will win. 95% of traders lose money, I am one of the 5% and I do the total opposite of all the traditional trading rules and crap that so called pro's sprout on the Internet. 2017 is gonna be a great year!