Don's openings Part 3

great job everybody.

friday was one of my first few days with this strategy, and i cancelled all orders when i saw futures 7 points below from where i entered the orders, and didn't have enough time to reenter. obviously, i'm not thrilled. guess there will be other opportunities.
 
Originally posted by Don Bright


I hate to say this, but you should spend some time in our school. Think about what you just posted...you tried to buy a stock (GE) at 30.15, but it opened higher at 30.25 (so how could you buy it?). Same on the offer, you offered it at 30.46, much higher than where it opened (30.25). The opening price was in the "trough" between your bid and your offer.

For example purposes, widen this out.
Bid 30. SS at 100.....stock opens at $50, how would you be able to buy or sell with those limits.

Hope this helps!!

Don
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Hi, Don, I must had a mental block when I wrote it and I realized my mistakes after that. Did some adjustments on Friday and entered in four orders and all got filled:) An awesome day for bottom picking! I'll continue to work on this and step up my size gradually.
By the way, this is a great website and thanks for your offer but the tuition for your school is a bit expensive in my opinion.
 
Hello,

Do any of you gentlemen trading "Dons' openings" keep track of the average daily ROI on successful fills? If yes, would you mind revealing the magic number along with the number of days used in the calculation.

TIA,
dis
 
I don't think ROI is all that relevent to daytrading, since most traders think in terms of net return, not percentages.

For this strategy, the main stat I track is daily and average net cents per share. Or, my net profit divided by how many shares I traded. This evens things out because I trade stocks from $10 to well over $100, and adjust my share size from about 2500 to 600 shares per position. My 22 day average has been pretty steady at 1.5 to 2 cents/share. I put in orders for 50-60 stocks per day and my average fill rate is 9%.

I've included a chart from my spreadsheet to show the daily results I've had going back about 3 months. Days with only one or two fills skew things, which is why the average is what counts.

Corey
 

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"I've included a chart from my spreadsheet to show the daily results I've had going back about 3 months. Days with only one or two fills skew things, which is why the average is what counts."

nice graph.it would be interesting if you could break it down long vs short fills.
 
OK you guys...this "triple witchng day" was unbelievable!! As you know, we see imbalances on almost every stock on triple witch, and gigantic swings.

We had many make $25,000 - $40,000 on Friday alone....and virtually everyone made many times their normal return. I only made about $3500 ("only" in comparison).

Today was good as well, made $2400 in about 2 minutes.....(IBM = wow!!).

OK, back to you all!!

Don
 
Originally posted by lescor
I don't think ROI is all that relevent to daytrading, since most traders think in terms of net return, not percentages. ... My 22 day average has been pretty steady at 1.5 to 2 cents/share. I put in orders for 50-60 stocks per day and my average fill rate is 9%.
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I agree that annualized ROI may not be relevant to daytrading. However, in order to evaluate a system`s risk-adjusted return - which is what I am trying to do - one needs to know its average daily ROI.

One its face, the system appears to be quite risky, especially on the long side. I am not particularly impressed by the high win/loss percentage for I could do even better by selling OTM naked puts. Not that I would recommend doing this. The real question is how much risk is involved in generating a unit of return.

dis
 
Originally posted by dis


I agree that annualized ROI may not be relevant to daytrading. However, in order to evaluate a system`s risk-adjusted return - which is what I am trying to do - one needs to know its average daily ROI.

One its face, the system appears to be quite risky, especially on the long side. I am not particularly impressed by the high win/loss percentage for I could do even better by selling OTM naked puts. Not that I would recommend doing this. The real question is how much risk is involved in generating a unit of return.

dis
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If you're referring to the opening strategy that our traders use, I can say that it is the safest of all the strategies we employ. It is high probability, easily monitored (by the tape reading trader), and can be kept at whatever "risk range" you feel comfortable with (by changing the number of stocks and the "envelope" used).

This is not a "system" ...more so a strategy....what I mean by that is that 5 different people could put in the same orders, and all 5 would have different resultis based on trading experience, risk tolerance, and basic trading skills.....

If you're speaking of ROI by itself vs. "labor" earnings....then my point is that you need to discern "ROI" on what?? The $25K at risk, the 2 Million "used" (not abused) when entering orders...??

I like to think that most professional traders, not money mangers, get paid for their skills, regardless of their amount of capital at use.

:-)

Don
 
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