Monday, May 28, 2012

Alligator Slippage

A while back I increased the slippage plus commissions on the reporting for this system to $45 per round trip. Since this system has fallen off of late, I've been reviewing everything including the slippage and commission impact. You can see the effect from the chart below, which is for the past 12 months, more or less. Since this is having such an appreciable impact, the effort to switch from market orders to limit orders is going to be accelerated for this system. It's difficult to judge the impact of this before hand, because of partial fills which can occur with limit orders. However, since this means you are getting your order filled without your limit price being cleared, the effect should be positive.

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