Don's Openings and More for 2006

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I wanted to get some short fills so I used a .4 envelope for sells & then even tightened a bit on some stocks & added a second layer, plus added some extra stocks to my usual list. Used .9 envelope on buys.
Got only 1 fill short JPM for 5 cents. Boring....
Good weekend to all.
 
question for OO traders - do any of you use stop-loss orders, and how much slippage have you experienced on the more volatile trades in liquid stocks?
 
i have used stops when i get more fills than i can watch....

i usually get a bit screwed in the process....

only do it when i have to...
 
Well, LOL...."what can go wrong?" ...when you arbitrarily add 15 stocks, just for expiration based on a $15-$50 price and a Million share average daily volume.

Somehow BHP ( a stupid gold ADR) got in there. The only "buy" on an up day...bought at 37.79 tried to get out immediately, missed bid...stock goes down to 37.28 (2000 shares)...oops....well, I held on for a bit, because CC and BMY were complete offsets (gooood CC)..... BHP came back, got out with small(er) loss....ended up +$550 for the morning.

"Coulda been great" but I'll take it.

Expiration days are usually better.

Don :cool:
 
Quote from chiguy:

i have used stops when i get more fills than i can watch....

i usually get a bit screwed in the process....

only do it when i have to...
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thanks for the feedback, appreciate it - on some openings, i see very fast moves, and i am trying to figure out how to best accommodate my stops for these situations

(1) i set the stop to be triggered only by the primary exchange's prints, it seems ECNs have a lot more one-off prints which do not reflect the "true" more liquid market.

(2) i have not yet been able to test using a stop limit instead of a plain stop to see if that can "recapture" some of the slippage while maintaining the risk level within reasonable limits.

i'd appreciate if anyone has any further thoughts on this.
 
Quote from fader:

question for OO traders - do any of you use stop-loss orders, and how much slippage have you experienced on the more volatile trades in liquid stocks?
More...

I only use mental stops. Like Chiguy says, you don't want to use them unless you have to, because you can get hosed on quick shakeouts.

Bumped up my envelope a tick and only put in sells today. Got nothing. Would have been the same story without any modifications...

Enjoy the weekend all. Don't worry if you can't find the Steeler game on Sunday. They play Monday night.
 
Quote from fader:

question for OO traders - do any of you use stop-loss orders, and how much slippage have you experienced on the more volatile trades in liquid stocks?
More...

I don't use the stops, just limit orders. Some folks using the automated spreadsheets use stops but they are "hidden" by the program so they are tracked in the spreadsheet & the limit order sent in when the stop price is hit.
 
Quote from fader:

thanks for the feedback, appreciate it - on some openings, i see very fast moves, and i am trying to figure out how to best accommodate my stops for these situations

(1) i set the stop to be triggered only by the primary exchange's prints, it seems ECNs have a lot more one-off prints which do not reflect the "true" more liquid market.

(2) i have not yet been able to test using a stop limit instead of a plain stop to see if that can "recapture" some of the slippage while maintaining the risk level within reasonable limits.

i'd appreciate if anyone has any further thoughts on this.
More...

FYI.....No "stop limit" orders starting October 6. (We would never use them anyway, for various reasons).

Don
 
Quote from fader:

question for OO traders - do any of you use stop-loss orders, and how much slippage have you experienced on the more volatile trades in liquid stocks?
More...

After the Opening print the specialist will flash bids/offers to see where the buyers/sellers are and also to panick people out. Make sure you have a T&S ticker up so you can see if the stock is actually trading at those levels.
 
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