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Don's Openings and More for 2006
- Thread starter Don Bright
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Quote from mschey:
That's not an opening order, just a straight momentum play, Volatility Breakout, or any of a number of different names. What kind of play it is doesn't really matter....the fact that you're making money does. Nice trade!
ja, waz 10min or so after da bell, usually i jump in just a few sec after da open on, as u say, vols breakout, but on this occasion da stock retraced after a massive run in pre-mkt and caught me eye a bit late...left da first 5% run on da table, still, not complainin' 1 bit[!]
edit; time zone is european on da trail.
8 fills / 11,100 shares
6 short / 2 long / -1864.00
- .95 / + .55%
2 shorts just got away...slb...-984.00...hca -1215.00
too much to do in the am...i might have to automate exits however it seems like a dangerous idea...
any feelings or insights on this...
problem is positions overlap due to different strategies and it is hard to sometimes find the bleeder...
6 short / 2 long / -1864.00
- .95 / + .55%
2 shorts just got away...slb...-984.00...hca -1215.00
too much to do in the am...i might have to automate exits however it seems like a dangerous idea...
any feelings or insights on this...
problem is positions overlap due to different strategies and it is hard to sometimes find the bleeder...
Quote from lescor:
....
Most of your assumptions are wrong. How you arrived at 12.8% doesn't seem to make sense either. "Worth it" is a personal decision. There is definitely opportunity cost because you are tied up trading one strategy and might be missing other good trades.
I'm only up $15k net on this strategy this year, less than half of where I projected I'd be at this time of year. I do it because it's fairly steady, and after 5 years, easy, money for me. It's a good way to start the day, and every once in a while you get a huge payoff. Lots of downside to it too though, like you can get your ass handed to you in a hurry if you miss something important.
Lescor:
Please point out which assumptions are wrong and what is your corrections.
Maybe you can tell us the max drawdown in 2005 and max leverage you can get from the prop shop.
Quote from chiguy:
8 fills / 11,100 shares
6 short / 2 long / -1864.00
- .95 / + .55%
2 shorts just got away...slb...-984.00...hca -1215.00
too much to do in the am...i might have to automate exits however it seems like a dangerous idea...
any feelings or insights on this...
problem is positions overlap due to different strategies and it is hard to sometimes find the bleeder...
I pull my drillers on CVX or XOM earnings. Just a thought.
Regarding overlapping strategies, can you build spreadsheets to monitor each strategy separately rather than relying on your broker's positions monitor?
Personally, I run different accounts for different strategies.
Quote from Shreddog:
I pull my drillers on CVX or XOM earnings. Just a thought.
Regarding overlapping strategies, can you build spreadsheets to monitor each strategy separately rather than relying on your broker's positions monitor?
Personally, I run different accounts for different strategies.
i usually pull the oils en masse...today i pulled cvx but not the drillers as oil was basically unchanged...looks like i will need to be more aggressive on the pulls...
i did the spreadsheet thing...only problem is not enough screen space to see the details...only totals...not always perfect though...
dual accounts would not work as i am somes times going both long and short on the open...every now and then they overlap...
Quote from ProfitMania:
Lescor:
Please point out which assumptions are wrong and what is your corrections.
Maybe you can tell us the max drawdown in 2005 and max leverage you can get from the prop shop.
Think about it this way:
You have a $25,000 account at a prop shop.
You have 20 stocks on your openings list.
The average price of the stocks are $40.00.
You have buys and sells entered for 1,000 shares each.
You are now putting in orders amounting to over 1.6 million dollars.
Now you can see why your rates of return don't make sense.
You can't put in 1.6 million dollars worth of orders in retail, even though you can only get filled on half at the most.
Hope this helps
Quote from comfut:
Think about it this way:
You have a $25,000 account at a prop shop.
You have 20 stocks on your openings list.
The average price of the stocks are $40.00.
You have buys and sells entered for 1,000 shares each.
You are now putting in orders amounting to over 1.6 million dollars.
Now you can see why your rates of return don't make sense.
You can't put in 1.6 million dollars worth of orders in retail, even though you can only get filled on half at the most.
Hope this helps
So, your buying power is 1.6m/25000 = 64 times of your account size?
At that much leverage, what if the portfolio is down $25000 or more?
Will the prop shop kick you out?
Well...If you lose more than your account the firm will likely assist you with closing out your positions. Bad days do happen. My worst day on Opening orders was a loss of around 30k. I expect them to happen once every year to year and half. You can expect to have periods where you don't make money at it, like any other strategy. YTD, the strategy seems to be underperforming. So we just need to change and adapt to the market once again.
Quote from ProfitMania:
So, your buying power is 1.6m/25000 = 64 times of your account size?
At that much leverage, what if the portfolio is down $25000 or more?
Will the prop shop kick you out?
You have the same misconception that many traders have...let me explain it this way. By having the access to capital, you can participate in strategies that actually work..and are less risky, more rewarding, but...very capital intensive...just like the opening strategy here.
If you have $20K, and put in $2millio worth of OO orders with the intention of making $2500 per week (pretty doable)...you aren't ever going to have some ridiculous loss, unless you let yourself do so. I put in 50 stocks, and get filled on 2-8 stocks daily...excellent winning percentage, very little risk...but, capital intenseive.
Same thing with market neurtral pairs strategies and market making...it simply takes money, that most retail people don't have, to engage in these strategies...same reason that most traders can't participate in Mergers and acquisitions or "surrogate specialist" activities....
Capital "use" does not equal capital "risk" ----
No trader should ever have their account down over 10% (the number which we use in our risk control).
All the best,
Don
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