Quite a lot has happened since I last posted a spread betting update. Firstly my position in Shanks stopped out at break even. At least it wasn’t a loss but it certainly was a bizarre stop out. The price dipped very quickly, stopped me out, then rebounded to it’s previous price before rising slightly. (See chart below) It does make me wonder sometimes. Is mister market out to get me. If you take a look at the 10day ATR for Shanks it’s currently around 2.5, so the dip represents around 2 and a half times this value. I really don’t see anyway to allow for this kind of behaviour, the only thing I can think is to use manual stop losses but I can say for sure I wouldn’t have exited at the value my stop was set at. I wasn’t watching the price when it happened for one and two if I was I probably would’ve started to think I’ll wait to see if it rebounds, which in this case it did, but so often it doesn’t and that’s when losses start to get out of control. Anyway I guess it’s just another one of those things that a spread bettor has to put up with. Hopefully it won’t happen too often.


Click image to see larger version. Image © SpreadCo

Next up my Misys position pyramided. I used the strategy I talked about previously using a value of 1xATR(10) for the dip. My order executed at 388. It’s sods law that all the price has done since then is drop, fortunately it hasn’t dropped too far. Hopefully the pyramid will stand up but who knows. We’ll have to wait and see I guess. The 1xATR(10) is a bot of an experiment at the moment and I have no idea how this is going to pan out. I may tweak this value in the future but for the time being it’s a bot of a ‘suck it and see’, Ooooh Errr!


Thanks to Jamie, the spread trader & Ted for taking part in this months FTSE100 competition. I’m not sure why only three people entered? Lots more have signed up to the news letter and the competition is completely free. I did try to give everyone enough warning about entering. I guess I could’ve left the closing date for entries until some time on Sunday as the markets were closed anyway. Maybe I’ll do that for next month. If you have subscribed, please do enter next months competition. How I said it’s completely free and you have to be in it to win it. If you have yet to subscribe then please do. The next news letter will be out in the next few weeks with a brand new competition.


Ok, I think that’s everything for now. As I’m sure you’ve gathered by now my updates have dropped off a little, mainly due to time constraints. But don’t worry I’m still here, updating you as regularly as I can. If I haven’t updated you can always read the latest spread betting news from Capital Spreads. It’s updated daily so while your waiting for me to update you can read that to keep you entertained.


Until next time,
“May the markets be with you!”
The Spread Betting Beginner

June 20, 2011 by Harry
Category: blog