slippage + commissions ; is $50 too much or little

[Leslie Walko <lesliewalko@xxxxxxxxx>]

> >Adam Wrote:
> >Out of interest, since I'm just looking at my slippage setting and wondering if 
> 
> >it's too much ($50 per round-turn), what level do you use?
> -
> Adam,
> The market itself, the type of strategy, the market regulation, the hour of the 
> day and volatility are the main factors influencing your cost.  Of course, there 
> are subtleties.
> 
> In general, stop order entry and exits in off hours can cost a LOT.
> Try $400 for Natural Gas, stop orders, but test it to see if the $400 is 
> sufficient. 
> 
> Energies roll monthly.  Your cost a minimum of 2 ticks + fees.  Stop entry / 
> exit can be from best scenario of 2 ticks to >10 ticks per side. Stay with the 
> trade a few months, cost add up.
> 
> I've also traded both NG and Euribor on limit order, average trade, a few 
> days--no need to roll.  If you can manage almost all of your entries and exits 
> on limit orders, in that case, my experience of TOTAL cost for Euribor < $20 + 
> broker fee ; total cost for full size NG might be 10 dollars more, at most.
> 
> In general, $35 limit order, short term will cover any European Exchange except 
> the MEFF.  (MEFF carries $8 exchange fees for a MINI ! )
> 
> Market on open, general slippage is 2-3 ticks in small size; Market on Close, 
> about 3-5 ticks; if you trade Palladium in size (New York) add $500 / side.  
> 
> Currencies and financials for LIMIT ORDERS can be modeled at $40 round  turn, 
> all expenses, but do not MODEL it, TEST it.  :-)
> 
> Leslie