Don's openings and more for 2005

[chrisofj]

Thanks I found this very helpful with the opening orders. I also have been coming up with ways to calculate how efficient a strategy is compared to commissions. I use a commission per trade average, which is interesting because if I do a certain chart pattern with stocks over $100 for instance this can be dramatically lower. I'll add that profit to commission ratio.

I've also been trying to come up with ways to use different leverage on a certain strategy depending on its drawdown, instead of just a fixed amount based on capital or something. For instance I wouldn't know how many shares to trade with this opening orders, it seems this is where prop leverage comes in if I have 10 orders sitting there in the am.

 

[reid5525]

Quote from chrisofj:

Thanks I found this very helpful with the opening orders. I also have been coming up with ways to calculate how efficient a strategy is compared to commissions. I use a commission per trade average, which is interesting because if I do a certain chart pattern with stocks over $100 for instance this can be dramatically lower. I'll add that profit to commission ratio.

I've also been trying to come up with ways to use different leverage on a certain strategy depending on its drawdown, instead of just a fixed amount based on capital or something. For instance I wouldn't know how many shares to trade with this opening orders, it seems this is where prop leverage comes in if I have 10 orders sitting there in the am.

Why trade opening orders. Why even trade before 10am when the risk is greatest. Maybe that's why you are not profitable.
Maybe if you look for stocks that are trending later in the day, when the market is not as volatile, you will become profitable.
AEA trended up on Friday and was a good bet when it made the new high above 22.50 and again above 23.00. Uptrends like that, when the market has quieted down, make for less risky trading.

 

[Dustin]

Quote from reid5525:

Why trade opening orders. Why even trade before 10am when the risk is greatest. Maybe that's why you are not profitable.

Because it's a profitable trading strategy...? The question these days is whether the capital required is worth the gain. Lescor has proven that you can make good $, but it takes work which most here aren't willing to do.

 

[hedgefunds]

Quote from reid5525:

Why trade opening orders. Why even trade before 10am when the risk is greatest. Maybe that's why you are not profitable.
Maybe if you look for stocks that are trending later in the day, when the market is not as volatile, you will become profitable.
AEA trended up on Friday and was a good bet when it made the new high above 22.50 and again above 23.00. Uptrends like that, when the market has quieted down, make for less risky trading.

The opening of the market, while riskier, provides the greatest opportunity for profit. Large MOO orders can skew openings away from fair value and it presents an opportunity to make money. Many traders look to establish positions on opening prints and if they get in trouble, to hedge these positions. I feel that openings have such a low expectancy that it would be better to automate this strategy and trade other strategies off of the open. Is anyone here running OO's automated and if so, do you prefer it to actually watching each position and trading it??

 

[nitro]

...Is anyone here running OO's automated and if so,

Yes, but not 100%. More so than the people here probably though...I wish I could automate it 100%, as there are other things that I want to do at the same time. Alas, I have not been able to do that as some positions require skill and full automation rarely allows for (human) judgement.

do you prefer it to actually watching each position and trading it??

No. When I am in position(s), I concentrate on them (see above.) After about ten to twenty minutes, I am doing my two other strategies and monitoring two other research strategies (100% automated) that trade on paper.


nitro

 

[chrisofj]

Quote from Dustin:

Because it's a profitable trading strategy...? The question these days is whether the capital required is worth the gain. Lescor has proven that you can make good $, but it takes work which most here aren't willing to do.

Trends are an anomaly. Reversion to the mean is much more reliable, especially if it involves other traders being forced to take action.

But then again...

 

[reid5525]

Quote from Dustin:

Because it's a profitable trading strategy...? The question these days is whether the capital required is worth the gain. Lescor has proven that you can make good $, but it takes work which most here aren't willing to do.

Ok. At the end of the trading day (you and other open order traders) show stocks that had the right setup for open order trades. Say where the entry and exit points were and what made it a good candidate to place a trade. Then others can evaluate what's right with it, and what's wrong with it.

 

[reid5525]

Quote from hedgefunds:

The opening of the market, while riskier, provides the greatest opportunity for profit. Large MOO orders can skew openings away from fair value and it presents an opportunity to make money. Many traders look to establish positions on opening prints and if they get in trouble, to hedge these positions. I feel that openings have such a low expectancy that it would be better to automate this strategy and trade other strategies off of the open. Is anyone here running OO's automated and if so, do you prefer it to actually watching each position and trading it??

Show two stocks that were good candidates for that type of trade on Friday last.

 

[Dustin]

Quote from reid5525:

Ok. At the end of the trading day (you and other open order traders) show stocks that had the right setup for open order trades. Say where the entry and exit points were and what made it a good candidate to place a trade. Then others can evaluate what's right with it, and what's wrong with it.

I no longer trade this strategy . Maybe Lescor or Don could give you a few examples from Friday. I would assume there were some good ones considering it was options expiry.

 

[lescor]

Short C

Long HPQ

Look at the charts