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[sharechat] Technical Trading Systems


From: Phaedrus <Phaedrus@techemail.com>
Date: Wed, 26 Feb 2003 21:37:12 -0800 (PST)


Peter,
      It's not that good, unfortunately! You are in fact missing several things 
:-
(1) You are not always in the market. I have no open trades at the moment, for 
example.
(2) Signalled trades can (and do) overlap each other, so if you are only able 
to afford a single position at a time, you will be unable to implement many of 
the signalled trades.
(3) If you do take multiple (concurrent) positions, the returns from these are 
not cumulative. (10 positions, each returning 4% over the same period, give a 
total return of 4%)
(4) If you allocate enough money to take, say, 10 concurrent trades, and you 
make 10% on a single trade, your return is really 1%, overall.
 So, the amount you make depends on many factors, including :-
(1) The size of each trade.
(2) The number of trades you are able to run concurrently.
(3) Whether your circumstances enable you to close one trade and open another 
on the same day. (ie do you have access to the market while it is open) 
                Phaedrus.
  

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