So, the experiment is indeed still alive. I abolished live trading for a little bit right now, because I did some back testing once more and was not too happy with the results. When I was optimizing protfolio performance disregarding any transaction cost and then applying the cost afterwards, I got good results for the theoretical performance but transaction cost ate away all the profits... On the other hand when I tried to lower cost, theoretical performance was terrible. As a result I decided to look into FOREX trading as cost might be more favorable there. Only problem is that in order to test the system I do need to learn how to program in Metatrader. This will take probably until the end of summer as I'm working in my internship as well as I'm trying to learn Romanian at the same time. I will give periodical updates on my progress and plan to be back on live trading once I start final year at university :)
Meanwhile I will try and follow the markets to see if the general idea works in indecisive market times such as the current one...
Does trend following on financial markets work? On paper it does, but now it is time to find out with my own personal money. I developed a simple buy-and-sell strategy, back tested it with historic data and now it's time to see how it will perform in real life. In this blog I will share my trades, thoughts and feelings as well as some general commentary.
