Interesting.
So many bright minds here and noone knows what to do with commissions.
Are commissions a voodoo magic?
Is it something psychological?
Are some commission plans good and others are bad?
I see many shoulda-woulda-coulda discussions in forums and chat.
Hoity-toity!
So many bright minds here and noone is able to recognize that commissions are the part of a trading system.
It is the same parameter as any other.
Just like a length of a moving average in trading systems using technical analysis.
Just like MACD parameters in trading systems using technical analysis.
Just like a stop-loss.
Just like a profit target.
Just like a position size.
Just like a starting capital.
Just like any parameter in myriads of parameters used in trading.
And just like any other parameter it is more important for one trading system and less important for other.
It is a simple math.
Commissions are among costs of trading system.
The sum of costs must be minimized.
The sum of commissions depends on:
- a trading style,
- a trading frequency,
- a commissions plan.
If we know the trading style and the trading frequency, we can determine the optimal commissions plan.
- The trading style is determined by the developer (trading system).
- The trading frequency is determined by the developer (trading system).
- Implication? The commission plan is determined (surprise!) by the developer (trading system).
Nobody is trying to dictate a length of used moving average to the developer.
Nobody is trying to dictate MACD parameters to the developer.
But every bright mind here, including Collective2 team, wants to dictate a concrete commissions
plan to the developer and his/her trading systems.
And in the current Collective2 implementation to ALL his/her trading systems. So if the developer has 3 trading systems and for each trading system a different commission plan is optimal, then 2/3 if his/her systems are sufferer if not damaged by Collective2 dictate.
Sad.
Bye.
