Daytrading the SPY or QQQ...?

[AAAintheBeltway]

Daytrader,

Someone may have already suggested this but I didn't have time to review the whole thread. The NDX or QQQ is highly correlated to certain components, principally the $SOX, the semiconductor index. The corresponding holder is the SMH. There are a couple of other components that correlate pretty well too. Given your objective, what I would do is take a directional trade with the holder, eg. the SMH, and hedge it with the QQQ's. You will have to work out the ratio, based on the relative beta's. I think you could generate huge volume with little risk this way and also position yourself for a big intraday directional trade if you decide to lift the hedge.

 

[limitdown]

hey, just read throught the thread and didn't see any positive comments on how to short term trade the spy's qqq's or otherwise.

1) need a penny broker, who discounts even further on volume (i.e. max comm amount)

2) need high speed connection, ruling out
a) sat comm
b) 56kb modems
c) fractional t1's

3) need dual monitors with charting watching the futures (of your choice), indexes and chief components with those indexes

4) reliable broker that you have no problems with, and are satisfied to now ramp up trading with

stay tuned for other traders to answer the rest...

 

[jj_jere@hotmail]

Does anyone use a mechanical system to trade the SPY or QQQ's?
JJ

 

[metooxx]

Yes.

 

[NihabaAshi]

Originally posted by jj_jere@hotmail
Does anyone use a mechanical system to trade the SPY or QQQ's?
JJ

You can use the search button in the upper right corner for results of something like "Mechanical System QQQ"...or "Mechanical System SPY".

Here's the link of search results of "Mechanical System QQQ"...

http://www.elitetrader.com/vb/searc...id=31605&sortby=lastpost&sortorder=descending

Nihaba Ashi

 

[egildone]

go to www.vtoreport.com then click on strategies.

Ed

 

[Magna]

Originally posted by egildone
go to www.xxxxxxx.com then click on strategies.

egildone,

As of this time you have made a total of 5 posts at Elite, and on 4 of them you've discussed the same website. Hmmm. Maybe you're just so thrilled you found that site that you want to share it with the world....or maybe you have an agenda? :eek:

 

[ddefina]

Originally posted by jj_jere@hotmail
Does anyone use a mechanical system to trade the SPY or QQQ's?
JJ

Yes, the NQ emini (QQQ future contract). Much cheaper than trading qqq's commission wise. I just recently started using my stock system on the emini's and it works great so far. My system uses S/R and probabilities to buy and sell. I've found it interesting that the same stats exist intraday with my system as they do on multiday trades (Win/Loss ratio and Average profit vs. Average Loss).

Borrowing from George Angell's method of reporting projected future performance, I should be a millionaire in a few months! But in reality on a good trend day it makes a killing and on a consolidation day it gives a lot back. Luckily there's a mixture of both every day. I can't trade using discretion. I have to have hard paper results and real life testing before I commit real money.

 

[Wonderduck]

Originally posted by stevet
limbo

why do u think people are afraid to give out their wining systems or methodolgy in case it then stops to work?

i dont think thats the case at all - although broadcasting a currently working arbitrage opportunity would probably kill it - i think telling someone your technique in trading indexes would probably, if anything, add to the technique, since it may add momentum to the begining of the move to get it going

whats your exact methodology and annual return%?

Arbitrage? Who here has been talking about arbitrage? I haven't seen any... just "daytrading".

 

[Avalanche]

I just read this whole thread....and didn't find an answer to the question I was looking for.

You guys that trade the ETF's. What is the best way to get an execution. I don't have access to futures, but I seem to really excel at reading them. However the proxy's I have used for them in the past have either come down in price or they don't have the liquidity I need.

For example I think the futures are about to rip but the stock I want to buy only has 500 shares on the offer.

Anyway my question is this. These things trade on the AMEX, so what is the best way to get a fill. You can go through the amex specialist, island, or arca which is often there. That's pretty much it right? Those three?

So does everyone always pick and choose differently each time. I mean if Island is there I'm hitting him, but if all the islands have pulled for a a dime, and you think the move is good for 25 cents, is it better to pay up and hit the dime or would you be better off sending the order through the AMEX?

Has anyone set up one hotkey that can just hit everything? I know Arca can hit market makers on nasdaq's but I have never used arca on a listed. Can an ARCA order fill against any exchange or only against other ecn's and market makers.

Also these other exchanges....boston, cincy, etc. Can anyone here hit them, ever? Surely someone can....but I have never been able to. It sure is annoying when you wish you could though.

Also I assume there are tons of hidden island orders that are fractons of a cent inside the ones that do show, is that almost always the case.

Much thanks.