This is the second of a continuing series on my thoughts on trading the STI with CFDs. The first was here. If you read Part One you’ve gotten the basics of index CFDs squared away. NOW LET’S MAKE MONEY!!!! Trend-Following: A refresher If you have followed this site from its humble beginnings you will be very well acquainted with the success of simple Moving Average rules. I have also investigated variations of the Moving Average rule, as well as discovered that the RSI and Bollinger Bands both work exactly opposite as intended, and finally documented the possibly declining alpha of these technical indicators as the markets develop. I have up until now always documented these effects without transaction costs for convenience’s sake. Here is the 20-day moving average (20MA) strategy, long only, backtested on the STI as far back as it has existed: And here is the 20MA, long/short: On ......