Don's openings Part 3

Originally posted by Don Bright

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...??
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Don, what I really want to know is this: if you get filled on $1,000,000 worth of stocks, how much, on average, do you expect to gross?
 
Originally posted by dis

Don, what I really want to know is this: if you get filled on $1,000,000 worth of stocks, how much, on average, do you expect to gross?
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We don't even bother thinking about the $1Million, we only think of the number of shares we have to get rid of, and the proper exit price.

For example, I got filled on 5 stocks this morning (6/25), which amounted to about $800,000....and I made $1800 in about 7 minutes or so....I did not consider the $$$ at risk more than a couple hundred bucks, yet made a decent amount.

Don
 
Originally posted by dis

Don, what I really want to know is this: if you get filled on $1,000,000 worth of stocks, how much, on average, do you expect to gross?
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The average share price of the stocks I trade is $50.30. For the past month, my average volume on openings (one side) is 7400. In that time, I've grossed $13,200. Keep in mind, that as Don said, the past month has been exceptionally good. Definitely better than average.

So you could say I have $375,000 of stock out on an average day. But again, that doesn't mean anything to me, that amount is almost 10 times my equity. My risk is all in the executions of my exits. A bad loser for me is about 30 cents. If a bomb hit New York 5 minutes after the market opened and I had a dollar or two of slippage on all my exits, I'd take quite a hit, but wouldn't be wiped out. That's how I look at risk when talking about this strategy.

Corey
 
any adjustments to the opening? widening the envelope obviously. i guess the risk is that all those retail people are waiting to see where it opens before selling.

OO orders are either going to make a ton of money today or get crushed. probably not going to get fills on the short side due to the uptick rule. any other thoughts?
 
For me, I am expanding both sides to 1.0, and going for it. Be quick with your slingshot exits (you may only get a few ticks to get out).

Here we go!!

Don
 
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