UNIT calculation for CFDs & Turtle-System-2
Posted: Thu Oct 04, 2007 6:14 am
Hi all,
actually, I have coded the TurtleTrading-System-2 into my program (its Tradecision), but not completed, because I can not add additional UNITs (pyramiding isn´t possible till now)
anyway: I would have another question:
how is the calculation of units done for CFDs?
As I´ve read, stocks whould have a big point from 1.
I would say, this normally whould be the same as for CFDs, with the difference, that for CFDs, you have to provide a margin. In most cases, the margin is 1% from entryprice per CFD. For CFD-stocks, the margin is 3%-5%.. this are the margin-requirements in case of my broker...
What in general you think about CFDs?
another thing:
If I simulate the system with an initial account of 10000EUR, in many cases the result of my current calculation is: unit = 1. This is, because I see CFDs equal to stocks. In this case with trading CFDs, this would mean, if the entryprice of the index = f.e. 8000 , the margin = 80. If the underlying goes down from 8000 to 7920, I´m out of the market.
This would also mean, that it´s necessary to have at least 20000EUR as a minimum of account-size to have more "space" for the CFDs but could also mean, that it´s not a good idea to trade CFDs for long-term, but only for intra-day-trading, or am I wrong?
I also realized, that the system-2, without any filter, performed after the year 2000 not really good, in comparison till the year 2000. Could this be the case, that now, it´s not really a good time for breakout-systems?
Actually, I´m working to identify some good filters for the system, because I like the idea of this breakout-system and also because it´s simple. I´ve realized, if I add f.e: Parabolic-SAR as condition for entry and exit, the system-result is more stable... let´s see.
thanx for feedback
Martin
actually, I have coded the TurtleTrading-System-2 into my program (its Tradecision), but not completed, because I can not add additional UNITs (pyramiding isn´t possible till now)
anyway: I would have another question:
how is the calculation of units done for CFDs?
As I´ve read, stocks whould have a big point from 1.
I would say, this normally whould be the same as for CFDs, with the difference, that for CFDs, you have to provide a margin. In most cases, the margin is 1% from entryprice per CFD. For CFD-stocks, the margin is 3%-5%.. this are the margin-requirements in case of my broker...
What in general you think about CFDs?
another thing:
If I simulate the system with an initial account of 10000EUR, in many cases the result of my current calculation is: unit = 1. This is, because I see CFDs equal to stocks. In this case with trading CFDs, this would mean, if the entryprice of the index = f.e. 8000 , the margin = 80. If the underlying goes down from 8000 to 7920, I´m out of the market.
This would also mean, that it´s necessary to have at least 20000EUR as a minimum of account-size to have more "space" for the CFDs but could also mean, that it´s not a good idea to trade CFDs for long-term, but only for intra-day-trading, or am I wrong?
I also realized, that the system-2, without any filter, performed after the year 2000 not really good, in comparison till the year 2000. Could this be the case, that now, it´s not really a good time for breakout-systems?
Actually, I´m working to identify some good filters for the system, because I like the idea of this breakout-system and also because it´s simple. I´ve realized, if I add f.e: Parabolic-SAR as condition for entry and exit, the system-result is more stable... let´s see.
thanx for feedback
Martin