Fee Modeling
The article reports about 55% net return with fixed $100 sizing after fees. Fee calculations must include both entry and exit costs. The correct exit fee is charged on actual closing position value rather than entry price. Fees reduce the…
1 sources - 5 claims
The article reports about 55% net return with fixed $100 sizing after fees. Fee calculations must include both entry and exit costs. The correct exit fee is charged on actual closing position value rather than entry price. Fees reduce the strategy's return but do not remove the edge in the article's model. Fees can turn an apparently profitable short-horizon strategy into an unprofitable one.