The All Ords continued it's September decline into October then staged a glorious recovery ending the month higher. This type of action chops up open positions then the rise doesn't benefit the portfolios because they are bereft of stocks.
Taken on a short time-frame this can be very frustrating but it is meaningless in the face of what we hope to achieve. Our success in this venture is the accumulation of many hundred trades rather than 30 or 40.
Having said that I am adding a few more lines to the chart.
I have been tracking the Dividend momentum trades on Nick Radge's website (TheChartist) for the past year and have decided to publish the results as a type of barometer of a non trend trading system.
You can find the full details of this by buying Nick's book which is around $10 on Kindle. It's much better value than the two or three cups of coffee this represents. I have been recording the trades as I might trade them rather than as pure trades. I would be leveraging the positions and my CFD provider requires more margin (typically 10% or 5% depending on their perceived risk) on some stocks than others so I am adjusting the trade size to keep the margin constant. I am also allowing for brokerage and interest charges.
I am also going the whole hog and including Nick Radge's Weekend Trend Trade style trades as per his book of the same name (Also about $10 on Kindle) It is a trend following system with an on/off switch like the Flipper and Random systems but only opens and closes positions on Monday morning. I have modified it slightly so that I can run it using Incredible Charts but I am otherwise sticking fairly closely to the script.
In fairness to Nick I will not be divulging the methodology in the books. If you are interested then go buy them - In my opinion it's like buying gold for $10 an ounce. Note - I receive no benefit for endorsing these books or any other product but I don't mind promoting things that I admire.
