Theoretically, if your broker is playing fair, slippages can be positive (at trader advantage) or negative (at trader disadvantage). But because of adverse selection, trend / momentum trading, and dealer manipulations, they tend to be quite asymmetrical with an important advantage to negative slippages. It is easy to understand this as traders tend to buy […]

At Alpha Novae, we do not agree with the ones (in particular the brokers…) explaining you that costs associated to each one of your trades are just a detail. Indeed, in the long term, we know that costs often make the difference between a successful manager and a loosing one.   But first let’s define […]