Monday 16 May 2011

Trades Being Affected Due To Change Of Contract Months

This month accumulated losses has artificially overrun taking into consideration of about 25 ticks discount and wrong signal entry and exit due to change of contract month which can cause more than 100 ticks on wrong input. Knowing such kind of weakness in technical indicators, traders may need to adjust own trading strategy even though follow blindly the system may be the best solution for traders who do not have strong discipline on trading.
Here is the best example where CPO Futures hourly indicator turned sell 3242 artificially due to change of contract months and over 25 ticks of discount, which by right the signal is still remained buy signal and hold. If still holding, the indicator is having about 20 over ticks of floating profit now marked to market price but here it incurs another loss of about 2o over ticks. To and flow, the losses may be more than 100 ticks if calculated in details.