Don Bright

Is the opening price that is reported in the media and makes its way on to our charts an average of the prices that were filled for market on open orders? If yes, then the price we get using this strategy is different by some variance amount.

That would mean that the price that we hope to get is as favorable relative to that average as possible to have this strategy maximize its profit potential.

Regards,
 
Quote from WECoyote:

Is the opening price that is reported in the media and makes its way on to our charts an average of the prices that were filled for market on open orders? If yes, then the price we get using this strategy is different by some variance amount.

That would mean that the price that we hope to get is as favorable relative to that average as possible to have this strategy maximize its profit potential.

Regards,
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Gotta be really careful. "Consolidated" price may simply be the trade immediately after 9:30, regardless of which marketplace. We only use the actual NYSE opening price (OPG order type on NYSE, automatically cancels all orders that are not filled, thus the term "opening only"), otherwise we would have no edge. Once filled, we can close using any ECN or market center.

All the best,

Don
 
I have a question for you Don that maybe you know the answer to.

A couple of times, I've had limit sell orders on the NYSE (placed a couple days ahead of time) for stocks that I own at a price well below what the gap open is. I'll see many shares filled at that gap open for a minute or two and then the price will drop right back down to the previous day's close and below my limit price.

Theoretically, wouldn't this gap open mean that there are more buyers than sellers and also "theoretically", since my limit price is below the gap, shouldn't I be filled since the price has moved through my trigger point?

This has happened to me twice and aggravated me both times that it's happened.
 
Quote from tradestrong:

I have a question for you Don that maybe you know the answer to.

A couple of times, I've had limit sell orders on the NYSE (placed a couple days ahead of time) for stocks that I own at a price well below what the gap open is. I'll see many shares filled at that gap open for a minute or two and then the price will drop right back down to the previous day's close and below my limit price.

Theoretically, wouldn't this gap open mean that there are more buyers than sellers and also "theoretically", since my limit price is below the gap, shouldn't I be filled since the price has moved through my trigger point?

This has happened to me twice and aggravated me both times that it's happened.
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You're likely seeing consolidated trades, not NYSE trades. I assume you have GTC orders placed on the NYSE, not with a broker or anything (?).

Check NYSE.com to be sure what the NYSE opening price is/was. They cannot trade through your offer.

Happy New Year,

Don
 
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