Commissions

C2
1

Are commissions takin into account? It looks like no commissions are calculated, which is important especially when a lot of trades are made.



Thanks

Rg,



jacob

2

Jacob:



In the past, we’ve had a lot of debate about how commissions ought to be treated on Collective2.

We’ve decided not to factor commissions into profit/loss results. The reason for this is that commissions are all over the map. Some brokers are deep-discount; others are full-service. Some charge per-contract, others per-trade. No matter what model or amount we chose, someone could make the argument that we chose wrong.



So instead we don’t choose. Thus, one should use his own commissions yardstick when evaluating a trading system here on the site. Obviously a system that trades a lot will exhibit significantly worse results in real-life than on this site. A system that trades infrequently will not be too different.



The general philosophy of this site is to treat users as intelligent adults, to present information as fairly and accurately as possible, and to let people make up their own minds using their own set of values about what is important.



Matthew

3

Best brokerage to use:



www.interactivebrokers.com.



Sincerely,

Mark

Equities Visualized

4

Subject: Re: Re: Commissions



Hello Mark,



I agree that Interactivebrokers is the cheapest one to use, but they don’t offer commodities, and as far as I know (maybe that has been changed) they do not support GTC stops. I used IB allot from 1995 until 1999, but i’ve learned my lesson. NEVER trade without a reliable backup, and there backup/support sucks. I prefer to pay higher commissions and get a decent support/backup/someone to fall back on in case of system failure/incidents etc…

Also with my trading style the commissions don’t really matter since I don’t trade that much. For daytrading I can understand it will make a difference, but then again I don’t know any succesfull daytraders in the long run, so lower commissions will only let you play a little longer. (day)Traders these days are more concerned about commissions then anything else, in my opinion thats one of the last things to concern about.



Thanks for your thoughts anyway,



Jacob

for IDM Diversified Programme