Don's Openings, Part 6 2003

Status
Not open for further replies.
Hey all. I'm new to open trading and I'm excited. I just figured out how to enter the orders in redi and I came up with a simple way to trade them. I plan on trading them like this: (mind you I'm very green to opening orders so some of the things I say might not jive with reality).

1. Look for opening imbalances which are published on ILX, my news source.
2. Get the opening indications from my Redi quote window or by calling redi if it doesn't appear.
3. Envelope the latest price until the market opens. Use a 1 percent envelope to start.
4. Exit all trades immediately on the open. Do not tape read. If I get filled in the envelope, take it as a break even. If it fills and turns against me immediately, try and get out with an ECN like ISLD. If I get a win, thank the specialist and get out.

Plan on screening for stocks this way: 2 million average volume, no earnings (yet), at least $10 in price. Any input?
 
Quote from riskreward:

Hey all. I'm new to open trading and I'm excited. I just figured out how to enter the orders in redi and I came up with a simple way to trade them. I plan on trading them like this: (mind you I'm very green to opening orders so some of the things I say might not jive with reality).

1. Look for opening imbalances which are published on ILX, my news source.
2. Get the opening indications from my Redi quote window or by calling redi if it doesn't appear.
3. Envelope the latest price until the market opens. Use a 1 percent envelope to start.
4. Exit all trades immediately on the open. Do not tape read. If I get filled in the envelope, take it as a break even. If it fills and turns against me immediately, try and get out with an ECN like ISLD. If I get a win, thank the specialist and get out.

Plan on screening for stocks this way: 2 million average volume, no earnings (yet), at least $10 in price. Any input?
More...

Please keep us posted. I did some studies on the ITS Pre-market indicators (Redi also has these) and couldn't find rhyme or reason to their action after the market opened in relation to before the market opened. I presume you'll be enveloping with or inside the indicators as I've rarely seen them open outside the indicators.

Cash
 
Quote from riskreward:

Hey all. I'm new to open trading and I'm excited. I just figured out how to enter the orders in redi and I came up with a simple way to trade them. I plan on trading them like this: (mind you I'm very green to opening orders so some of the things I say might not jive with reality).

1. Look for opening imbalances which are published on ILX, my news source.
2. Get the opening indications from my Redi quote window or by calling redi if it doesn't appear.
3. Envelope the latest price until the market opens. Use a 1 percent envelope to start.
4. Exit all trades immediately on the open. Do not tape read. If I get filled in the envelope, take it as a break even. If it fills and turns against me immediately, try and get out with an ECN like ISLD. If I get a win, thank the specialist and get out.

Plan on screening for stocks this way: 2 million average volume, no earnings (yet), at least $10 in price. Any input?
More...


You're going against the basic premise of watching the tape on the stocks you're filled on. Ride the "wave" on the up down movement the first few minutes.

The problem with "immediated outs" or closing the position, is that you often get caught in the Specialist Shaike out (where he opens down, goes down another dime to "shake out all the automated guys" and then runs the stock back up.

In any event, I wish you the best in your endeavor.

Don
 
Thanks for the responses. If shake-outs are common, I will not trade this method. I think I can get 200-250 paper trades in little time. If it doesn't make money with paper over 200 trades, it probably doesn't work! However if it does, I can start looking into execution. I'll definitely post my results.
 
Quote from riskreward:

If it doesn't make money with paper over 200 trades, it probably doesn't work!
More...

It's not a question of whether it works, it's a question of whether you can do it right. The guys making a living with opg's spend a lot more time and effort tinkering the strategy than most people are willing to do.
 
I know what you mean. What I'm saying is if I set up some parameters and get roughly 200-250 paper trades with poor results, those parameters probably aren't very good.
 
Quote from riskreward:

from what I understand, you are saying that stocks rarely open outside of their opening indications.
More...

I didn't do extensive study of it, but from the research I did, yes, that's what I'm saying.

Now, maybe there might be something to it if you compare it in relation to the percentage the S&P opens. Maybe if it's more extreme than that, it's a better OPG order (or worse?).
 
Status
Not open for further replies.
Back
Top