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Trevman · 11-09-2006, 09:35

attached is some work done on the brokers edge (the spread) on a given trade. the pics are from somewhere on this forum but i can't remember who did it (just so no one thinks i'm nicking it as mine, can't rememebr who it was though - kudos to them anyway).

as you can see the larger the trade target/limit the smaller the edge. however it IS still there, but if you took trades in the direction of positive interest with 50/50 ratio and based on longer trades (one for the micro-mini's) with the aim of the interest paying for your spread you may be able to reclaim the spread and in turn beat it.

if the above stands to be workable then if with each trade you ignore your profit loss and look at the interest after the spread is deducted, if this is positive then the odds are infact in your favour and so continually trading 50/50 would negate profit loss and result in accumulated interest, AND if that stands true then surely you could use the trend as your friend and find an entry point on a trend in the direction of positive interest to again increase the odds in your favour.

11-09-2006, 09:35	#1
Trevman level 3 Join Date: Jan 2005 Posts: 290 Downloads: 6 Uploads: 0 Rep Power: 0	Beating the spread attached is some work done on the brokers edge (the spread) on a given trade. the pics are from somewhere on this forum but i can't remember who did it (just so no one thinks i'm nicking it as mine, can't rememebr who it was though - kudos to them anyway). as you can see the larger the trade target/limit the smaller the edge. however it IS still there, but if you took trades in the direction of positive interest with 50/50 ratio and based on longer trades (one for the micro-mini's) with the aim of the interest paying for your spread you may be able to reclaim the spread and in turn beat it. if the above stands to be workable then if with each trade you ignore your profit loss and look at the interest after the spread is deducted, if this is positive then the odds are infact in your favour and so continually trading 50/50 would negate profit loss and result in accumulated interest, AND if that stands true then surely you could use the trend as your friend and find an entry point on a trend in the direction of positive interest to again increase the odds in your favour. Attached Thumbnails __________________ show me the money!! Last edited by Trevman : 11-09-2006 at 09:41.