This one trick cuts slippage in half
In this instructional video, Adrian Reid explains that simply adding more systematic trading models does not automatically reduce slippage, because multiple systems can still generate overlapping trades on the same stocks at the same time. He emphasizes the importance of achieving true execution diversification when building a multi‑system portfolio. Reid outlines practical ways to force diversification without creating entirely new systems: using stock‑level controls (e.g., avoid entering a stock already held in the portfolio), employing RealTest constraints, and designing entry rules that cannot trigger on the same day. He gives concrete examples such as entering on the open after a 200‑day high, staggering entry based on consecutive 200‑day highs, and delaying moving‑average crossover entries by one or two bars. These techniques spread trade execution over time, thereby reducing slippage. He stresses that any such modifications must be rigorously back‑tested. The video concludes with a call to like and subscribe to the Enlightened Stock Trading channel for more systematic trading content.
