Commission an Slippage Assumptions?


Search function has no results for topic. These are potentially gigantic variables
in real world trading results and are one of top variables for further prospecting.
A rough idea while not biasing me ?



Assuming you are trading your own funds (that is, market impact is not being substantial), it is an overestimate to assume 3 cents round trip cost with slippage for liquid stocks and unleveregaed ETFs. However, if you trading highly leveraged ETFs, they jump around substantially, and 50 cents round trip cost with slippage should be assumed. True costs will be much lower, depending on your trading style. For example, with counter-trend trading you would have limit orders resting, so probably could achieve close to 1 cents round trip cost.