9/10 – Decision to focus testing time on futures rather than DAX & Cable CFD’s

Another quick update.   (I am blogging less these days – as I said before I won’t talk a lot about the futures trading I am involved in – and lately that has mostly been what I have been doing!)

Two weeks ago I reflected a lot and made a decision that i need to return to demo-testing in order to build a solid data set to give me confidence in the strategy I use to trade the markets.  I wrote half a book trying to articulate my thoughts on that one.  

Since writing that post, I have spent nearly all of my office time on working on the futures trading, and practically zero time on testing the K7 strategy for DAX and Cable (as had I planned to).

The points I made regarding the need to demo-trade are completely valid.  My conclusions still stand – they have not changed.  As I said in that post, testing is crucial for ANY trading strategy, not only K7.

However, after thinking about the pros and cons of testing in the TY&ES futures area, as opposed in the CFD areas for DAX and Cable, I decided to focus my attention on the futures for the next few weeks, since I am already likely to spend a lot of time on those markets as it is.

For testing purposes, TradeStation is coming in very useful for obtaining real-time and historical data (including indicator) for all US-based futures markets, for a mere cost of $20/month.

I believe that for real trading, the edge will be higher (or less negative) with the futures compared to K7.  Firstly, because the transaction costs will be lower and secondly because I will a specialised platform at my fingertips with the futures situation.



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