Turnover by Malcolm Morley

Turnover by Malcolm Morley

I’ve been flamed a few times on these forums for saying that we should endeavor to traded as efficiently as possible because the spread costs of our transactions can become a significant issue.

I’ve been flamed a few times on these forums for saying that we should endeavor to traded as efficiently as possible because the spread costs of our transactions can become a significant issue.

Anyway, as many of you know I now trade with the api, and as a consequence I’ve just gone through my volume figures for the past month. Now I think I’m trading conservatively at the moment – low(ish) leverage, and modest trade frequency. Even so, I am turning over my account over 6000 times per annum! (That’s USD trade volume for the month x 12/USD Balance). I even had one sub-account that turned over 2000 times, in the last month alone!

I know that is nothing compared to dgcfx’s comment sometime ago that it’s quite possible to do $80m turnover pm off a $10,000 account, but it still goes to show that turnover can be somewhat high – and possibly much greater than some might expect, which is good news if you are interested in the api, but bad news if you like to offset positions in different accounts.

But anyway; I don’t want to get in an argument about that. All I’m saying is that some may like to do your own calculations – you may be quite surprised at the result.

OANDA’s got a great business, haven’t they?

~chaffcombe

I have lived and breathed trading ever since trading fx professionally in London, Toronto and Philadelphia in the early 70’s (yes I know that shows my age!). While my professional career subsequently took me from the trading desk to designing treasury systems for some of the world’s leading financial institutions, my desire was to always trade for myself. As a consequence, following 5 years with a major international stock-broker

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