Today I made one new spread bet. I made the trade in my brand new SpreadCo account purely to see what the platform is like etc. First impressions are reasonable, although I think there is possibly room for improvement. If you’re new to spread betting the I would suggest opening a demo account with them first and get used to the platform. It’s really too early for me to comment too much about their platform and service as I’ve only just started trading with them. I’ll keep using them for a while then do a proper review at a later date. SpreadCo are another one of the spreadbetting companies that I can add to my growing list.
Todays Spread Betting Action
Anyway onto todays spread betting action. As I said I made one new trade. It’s a super trend cross sell trade in old mutual. Sell at 134.23, stop at 145 and £1 per point. This gives me a risk of £10.77 just about on the money for my 1% risk rule. I was thinking more about my super trend strategy. With it being a trend following strategy I’m wondering if I should do the same as I’m starting to do with Vinces strategy. That is always be long or short of a few stocks. For example if my stop loss gets hit this is also a sell trade signal. If I therefore change my position from long to short I’ll always be in a trade with this one stock. Therefore when a big trend comes along I’ll be in from the start and I’ll be on the right side of it. The only question is would all the whipsaws I would face outstrip the potential profit from one big move. Well who can say? The only way I could guess would be through back testing the idea. I really have no experience of back testing but I know pro real time offer it as a feature. Has anyone used it? I’ve tried it briefly but I don’t really know what I’m doing. I know off the lip back tests using excel. The only problem there is I would need to write a super trend indicator so I could back test it. Doable but I wonder if pro real time might be the better solution. If anyone else has other good ways they use to back test strategies I’d love to hear them.
Until next time,
“May the markets be with you!”
Harry,
The Spread Betting Beginner
