Do not trade FTSE open strategy after 30 point loss | by EasyTrader | Coins | February 2024

My backtesting shows that trading the day after a large loss is risky.

My FTSE strategy of waiting long after the open and aiming for a 10 has proven successful.

If you don’t know this strategy, I’ve posted the details here…

I trade for £75 per point. This means that once you reach the 10 point limit you will receive £750 (or slightly more due to slippage).

Alternatively, if your 30 point stop is hit you would lose £2,250.

My backtesting shows that a 30 point stop is rarely true and will most likely get you out of breakeven if the trade is unfavorable.

Here’s how many times my stop has been hit:

February 2023: twice

March 2023: twice

April 2023: 0

May 2023: Twice

June 23: 3

July 2023: twice

August 2023: 3

September 2023: 0

October 2023: Twice

November ’23: Once

December ’23: Once

January 2024: Once

February 2024: 0 (but was able to overcome a minus-30 point loss with minus-17.6 on February 2).

What happens if I don’t trade my strategy the day after a 30 point loss?

We would have lost three points in February.

In March we would have lost 10 points.

In May you would have gained 30 points.

In June, we would have lost 12.5 points.

In July we would have lost 17 points.

In August, we would have had 31 points.

In October you would have gained 30 points.

In December you would have lost 10 points.