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Hi Peter,
The 2 % was just a number used in the example there are no golden rules for
slippage, Its a figure which I change from trade to trade and is usually
calculated depending on the volitiy of the share been traded, eg if its a
tech stock which can vary considerably in a day I then slippage hi .
If its a more staple blue chip then is very low , I look at the movent
variation for several days and use that as a general rule ..
2% if often used in relation to stop losses
2% of total investment funds as a stop loss on anyone trade.
May don't worry about slippage at all
If anyone has any other formula's that they use please feel free to add to
thread.
----- Original Message -----
From: "Peter Carr" <pcarr@xxxx>
To: <amibroker@xxxxxxxxxxx>
Sent: Sunday, December 31, 2000 8:01 AM
Subject: Re: [amibroker] Profit Taking?
On Fri, 29 Dec 2000 at 13:13:39, David Holzgrefe <dtholz@xxxx>
wrote about [amibroker] Profit Taking?:
> the problem you describe is called slippage you may need to
> calculate it
> when you do your forecast
> eg xyz buy at 10,000 at 1.00 = $ 10,000
> brokage $60.00 both ways $ 60.00
> slippage 2% total on entry and exit $ 200.00
Is 2% for slippage a popular figure for this? Does it vary, and if so,
could you tell me by how much (ie the range)?
> cost of trade $10,260
> break even at 1.026
> profit target ?? 1.03
Do you use any formula for assessing a profit target? Is there a
recommended acceptable level to achieve/aim for?
Thanks in advance.
Peter
--
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Peter Carr
Email: pcarr@xxxx ICQ: 22586379
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