Hi everyone,
I am developing a system that requires me purchase a security where I am requires to be short a security when the market price is below a certain price and long when above. Due to the spread this is quite costly in whipsaw markets.
Example:
If price < 100 then Short
If price > 100 then Long
How would you guys handle this situation to keep costs at a minimum? I am playing around with some things but is unable to effectively avoid the âspread costsâ.
Kind regards,
Steffan
I am developing a system that requires me purchase a security where I am requires to be short a security when the market price is below a certain price and long when above. Due to the spread this is quite costly in whipsaw markets.
Example:
If price < 100 then Short
If price > 100 then Long
How would you guys handle this situation to keep costs at a minimum? I am playing around with some things but is unable to effectively avoid the âspread costsâ.
Kind regards,
Steffan