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Grinding it out, day after day
- Thread starter lescor
- Start date
Quote from lescor:
During the day, the automation I run is to manage and exit positions. I will use it on entry, but only after I've decided to activate the stock or set up, meaning I have to give the program the ok to float orders in the stock. So yes I use automation, but it's still subjective, so not a black box system.
I don't trade market on close strategies, ie imbalances, etc.
Thank you for the thread Lescor, its been half year and i see some popsts by peole has fallen off, butyou have kept it up,
thanks again for contiuinung to share this with us.
EF
Quote from lescor:
For this week, yes. A few busy days but net result wasn't that much, definitely below average. As I've said before, netting a penny a share is a margin I'd be happy to average over the long term if I can do it at decent volume.
I never understood why people are so obsessed with how many pennies or ticks you make. The bottom line is the only thing that matters is the bottom line. If your profitable, your profitable. It must be an obsession with small volume traders as they see it translate to small profits. However, like lescor, averaging a penny or two a share on large total volume is a handsome reward. Same with futures. The guys making tens of thousands a day generally arent averaging ever higher than a point on their volume. In fact, most are averaging about 2-3 ticks on an up day. Thats not to say your only taking 2-3 ticks on a trade but that your profit on volume is 2-3 ticks which is fantastic on high volume.
You make an important point. For me trading swing trading futures, I'm happy if ES moves 20-30 points or oil 2-3 dollars or gold 10 dollars.
I can't imagine trading for just 2-3 ticks. What does "really large volume" mean to those people who trade futures going for 2-3 tics?
10 contracts? 20 contracts?
Thanks
I can't imagine trading for just 2-3 ticks. What does "really large volume" mean to those people who trade futures going for 2-3 tics?
10 contracts? 20 contracts?
Thanks
Quote from bigb:
I never understood why people are so obsessed with how many pennies or ticks you make. The bottom line is the only thing that matters is the bottom line. If your profitable, your profitable. It must be an obsession with small volume traders as they see it translate to small profits. However, like lescor, averaging a penny or two a share on large total volume is a handsome reward. Same with futures. The guys making tens of thousands a day generally arent averaging ever higher than a point on their volume. In fact, most are averaging about 2-3 ticks on an up day. Thats not to say your only taking 2-3 ticks on a trade but that your profit on volume is 2-3 ticks which is fantastic on high volume.
hi,
i know you say you do not pair trade correlated stocks but can i assume you are going long and short stocks at the same time? and if so are they evenly matched eliminating market direction?
The reason you do not use stops as such is that you are probably well diversified amongst your basket of stocks again limiting your risk, am i correct here?
I personally use a top down approach and make my market analysis first then go to stock but it seems you go to stock first and most of the time you are not overly concerned with market direction as you are running many long and shorts meaning you are quite market neutrel, again only my assumption, am i correct?
do you use any exhaustion theory in your analysis?
Is your performance on oscillation days?
Do you take more hits on trending days with this style?
Many thanks if you can help me out with these points and thanks for answering so far.
cheers.
i know you say you do not pair trade correlated stocks but can i assume you are going long and short stocks at the same time? and if so are they evenly matched eliminating market direction?
The reason you do not use stops as such is that you are probably well diversified amongst your basket of stocks again limiting your risk, am i correct here?
I personally use a top down approach and make my market analysis first then go to stock but it seems you go to stock first and most of the time you are not overly concerned with market direction as you are running many long and shorts meaning you are quite market neutrel, again only my assumption, am i correct?
do you use any exhaustion theory in your analysis?
Is your performance on oscillation days?
Do you take more hits on trending days with this style?
Many thanks if you can help me out with these points and thanks for answering so far.
cheers.
Quote from jayjay121:
hi,
i know you say you do not pair trade correlated stocks but can i assume you are going long and short stocks at the same time? and if so are they evenly matched eliminating market direction?
long and short, yes, market neutral, not always
The reason you do not use stops as such is that you are probably well diversified amongst your basket of stocks again limiting your risk, am i correct here?
diversified, yes, but also somewhat hedged if I become too net long or short.
I personally use a top down approach and make my market analysis first then go to stock but it seems you go to stock first and most of the time you are not overly concerned with market direction as you are running many long and shorts meaning you are quite market neutrel, again only my assumption, am i correct?
correct
do you use any exhaustion theory in your analysis?
no
Is your performance on oscillation days?
Do you take more hits on trending days with this style?
It all depends on how I'm positioned and how the individual stocks perform. If I'm net long and the market trends up strongly, I might still do poorly if I am overly exposed to a sector that is weak, if I'm short a lot of spy or I have a large position in one stock that goes down. It's like a box of chocolates.
Many thanks if you can help me out with these points and thanks for answering so far.
cheers.
hi, its not as easy as this just scanning for gaps.
Stocks that gap up are strong stocks and stocks that gap down are weak stocks and don't always revert back.
I admit stock selection is the key to this method and probably the most important area as you can eliminate most of the market direction if done correctly.
Still trading is very random in nature and you will not get every trade working out and like lescor must be willing to accept drawdown. Most professionals edge is only very tiny and i beleive only a tiny edge is truely possible, the difference is they exploit this edge with sizing up and risk and money management.
Im currently running some tests and looking into stock selection for this method. I will get back to you with my findings soon.
Im runnings tests for RTM in choppy stocks, high atr stocks, double tops & bottoms, exhaustion. vwap, earnings stock move +/-10%, previous close.
So far in my testing some stocks work, some don't. Very random so far and this is what i expect to be honest, its just finding that tiny edge to which of the above work best over a decent sample size. Maybe a mixture of all.
I would say stock selection is the most important part of this startegy, does anyone agree?
Lescor with out giving away too much can you tell us where our research should be heading concerning stock selection and perhaps an area we should be looking at more closely?,
kind regards,
jason
Stocks that gap up are strong stocks and stocks that gap down are weak stocks and don't always revert back.
I admit stock selection is the key to this method and probably the most important area as you can eliminate most of the market direction if done correctly.
Still trading is very random in nature and you will not get every trade working out and like lescor must be willing to accept drawdown. Most professionals edge is only very tiny and i beleive only a tiny edge is truely possible, the difference is they exploit this edge with sizing up and risk and money management.
Im currently running some tests and looking into stock selection for this method. I will get back to you with my findings soon.
Im runnings tests for RTM in choppy stocks, high atr stocks, double tops & bottoms, exhaustion. vwap, earnings stock move +/-10%, previous close.
So far in my testing some stocks work, some don't. Very random so far and this is what i expect to be honest, its just finding that tiny edge to which of the above work best over a decent sample size. Maybe a mixture of all.
I would say stock selection is the most important part of this startegy, does anyone agree?
Lescor with out giving away too much can you tell us where our research should be heading concerning stock selection and perhaps an area we should be looking at more closely?,
kind regards,
jason