Don's Openings, Part 6 2003

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I think it's sort of sad that people think they can brag about the money they make on such a vertical strategy without it ruining the technique.

It's not just that 10 or 20 new bright traders are doing 20,000 more shares. There must be hundreds of people that have gone through the Bright Training and/or reading these forums. IMHO, traders are now adding enough liquidity on the openings that specialists probably don't have to take a position and don't care which way the stock moves after the opening. I also suspect that some of the floor traders know they can shake out the weak hands.

Just take a look at the NYSE stocks that gap up or down on the opening, there are plenty that gap up and go higher and plenty that gap down and go lower without ever looking back. So much for "being on the side of the specialist." Considering that you probably need at least 60% winners to make any money, after commissions, this strategy appears to be fairly high risk now.

Kudos to those that started doing this years ago and kept their mouths shut, long before the crowds showed up.

Jack
 
Find a strategy and sell it to anyone who will listen to boost volume and profit until it selfdistructs and find the next edge to crush. Newbies are the only way they will get new traders, that is why they sell it. Look at tier rates, they have descent volume guys getting shafted. You have 100-200 guys putting the same orders out in one firm alone????? That specialist will not open where they used to be able to. Thanks genius!

cheers
 
Don posted in Dec. 2002: "My "boot campers" are doing pretty well, and most have progressed to the 1000-2500 share level for the openings. " So many of his traders in training do trade 1,000 or more shares.


Sorry, but I was there (at boot camp) and at most of the boot campers tried 1k shares for a week or so until they got killed one day. By the end of 11/02 most of them were down to 100-300 shares on the open just so they could say they were still doing them.

I think one guy was still doing 1k shares.
 
sounds like it gets back to which stocks to do this strategy with. I am curious as to how those stocks are selected. Obviously they have to be NYSE and liquid, but there are hundreds of stocks out there that fit that description. So, how do you pick your stocks ?
 
I'm trying to find out what the fair value of the S&P is. When i go to programtrading.com, they just show a value of "-$__.20"

What should go in that blank space? or does this just mean to delete this value from the previous day's spot?

Sorry, new to this.

Thanks!
 
FV today is -.16
What you see at programtrading.com, 2 dashes, that is supposed to be a negative sign. Patterntrading.com also has FV. You can average the 2.
 
Quote from Dave K:

Don posted in Dec. 2002: "My "boot campers" are doing pretty well, and most have progressed to the 1000-2500 share level for the openings. " So many of his traders in training do trade 1,000 or more shares.


Sorry, but I was there (at boot camp) and at most of the boot campers tried 1k shares for a week or so until they got killed one day. By the end of 11/02 most of them were down to 100-300 shares on the open just so they could say they were still doing them.

I think one guy was still doing 1k shares.
More...

...Dave,

That's <exactly> what my friend who trades their said to me as well...

J-
 
If you use the "search" function at the top right of the window, you can find the earlier threads (parts 1-5) where Don gives the exact details of the calculation.
 
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