Hey Andreas, great stuff that you put out here!! I am curious if you set the trade manually and if you have some automatic trading connection to Interactive Brokers. Also, how much slippage do you allow when setting limit orders? Cheers, Michael
Hey Michael, yes, I only trade manual. Small Caps: I usually put in a buy order at the bid, usually during the day bid and ask get closer and I might buy the ask if it is below 0.5% spread. That is at the lower end of slippage calculation of my models (which is between 0.5 - 1%). Selling vice versa. Also it depends, today for example I $KE Kimball electronics with a bid that was higher than the market (e.g. I put in an order which was higher than the market at that point). Reason: well it was down almost 10% the last week, so this is an o.k. swing price. Big caps from the S&P 500 for example you can buy the ask and sell on the bid. Thank you and best Regards Andreas
Hey Andreas, great stuff that you put out here!! I am curious if you set the trade manually and if you have some automatic trading connection to Interactive Brokers. Also, how much slippage do you allow when setting limit orders? Cheers, Michael
Hey Michael, yes, I only trade manual. Small Caps: I usually put in a buy order at the bid, usually during the day bid and ask get closer and I might buy the ask if it is below 0.5% spread. That is at the lower end of slippage calculation of my models (which is between 0.5 - 1%). Selling vice versa. Also it depends, today for example I $KE Kimball electronics with a bid that was higher than the market (e.g. I put in an order which was higher than the market at that point). Reason: well it was down almost 10% the last week, so this is an o.k. swing price. Big caps from the S&P 500 for example you can buy the ask and sell on the bid. Thank you and best Regards Andreas
Thank you so much for the answer. Highly appreciated