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Basket Trading
- Thread starter jlcarey1
- Start date
Lots of traders use this method. You can make a lot and lose a lot. And the other days when you make several hundred gross, you get killed because of fees. This method is not new but you need a decent amount of buying power to trade baskets.
Are Basket orders conditional on each other? Do you configure one order so it transmits only once the other order has been executed? Thanks for explaining
Quote from listedtrdr:
Lots of traders use this method. You can make a lot and lose a lot. And the other days when you make several hundred gross, you get killed because of fees. This method is not new but you need a decent amount of buying power to trade baskets.
why don't you just trade bbh, smh, dia, spy or qqq?
They provide instsnt diversification.
baskets can be great and can be money machines, but you better be good at it b/c you can lose a lot to if you are wrong...
i dont see baskets so much as spreading out risk as much as automating a trade to make you quicker and able to buy more and enhance an already succesful strategy.
but imo, these strategies should only be used if you are already proficient and profitable with a particular strategy in the manually and then use the basket to capitalize on this strategy, i.e relative strength and groups....
so in other words if you can't make money trading one stock, using the basket, the basket in and of itself, wont make you a profitable trader if you werent profitable without it...IMO
i dont see baskets so much as spreading out risk as much as automating a trade to make you quicker and able to buy more and enhance an already succesful strategy.
but imo, these strategies should only be used if you are already proficient and profitable with a particular strategy in the manually and then use the basket to capitalize on this strategy, i.e relative strength and groups....
so in other words if you can't make money trading one stock, using the basket, the basket in and of itself, wont make you a profitable trader if you werent profitable without it...IMO
Quote from hii a_ooiioo_a:
Are Basket orders conditional on each other? Do you configure one order so it transmits only once the other order has been executed? Thanks for explaining
not sure of your question, but there is alot you can do with them, depending on the software though. i know with mine i can program it to do all kinds of crazy things
So, basket orders are not specifically Conditional orders upon the other members of the basket? Maybe what I am seeking is simply Conditional Bracket orders.
Are basket orders merely large lumps of orders set up so you only need to click transmit once?
Please explain what a basket order is for me. Thanks
What I'm trying to figure out is whether I can place multiple orders where some will only be transmitted conditional on the other getting executed. For instance to leg into a spread, such as a Pair Trading spread where the two legs are not the same stock.
Are basket orders merely large lumps of orders set up so you only need to click transmit once?
Please explain what a basket order is for me. Thanks
What I'm trying to figure out is whether I can place multiple orders where some will only be transmitted conditional on the other getting executed. For instance to leg into a spread, such as a Pair Trading spread where the two legs are not the same stock.
The 2 best software programs I have seen for baskets are Realtick and one being offered by Greentree, (I forget the name). I think some of the bigger online brokers have basket capability but I haven't used them. (Datek, Schwab) Biggest problem I had with baskets were commissions, but this was 2 yrs ago so that might have changed.
The software that GreenTree usues is a Sterling platform...and of cousre its great for basket trading...Quote from cartm:
The 2 best software programs I have seen for baskets are Realtick and one being offered by Greentree, (I forget the name). I think some of the bigger online brokers have basket capability but I haven't used them. (Datek, Schwab) Biggest problem I had with baskets were commissions, but this was 2 yrs ago so that might have changed.
Cheers
Joey
Quote from hii a_ooiioo_a:
So, basket orders are not specifically Conditional orders upon the other members of the basket? Maybe what I am seeking is simply Conditional Bracket orders.
Are basket orders merely large lumps of orders set up so you only need to click transmit once?
Please explain what a basket order is for me. Thanks
yeah, thats basically it,being able to send out many orders with one click of the button, for convenience, or speed when the markets ripping u dont have to slowly enter each manually...
i.e. i have a preset basket of retail stocks, if that group is strong that day, or if i see institutional trading, when the spus take off i can seen an order to buy 10-15 (a "basket") retailers...
most traders are aware of these strategies but there are others, get creative, but sorry cant reveal my whole bag of tricks