HERE is how to make money consistently trading the open

terminator8 said:
I tested the principle on DAX futures using only RTH data. It did not hold. Opening price was within high/low only 49% of the time. Any ideas why? Thanks in advance :)
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Yes..the DAX is not US stocks :)

Mr Pesavanto's principle needs a little bit of fine tuning..but the overall approach is very valid!

What is the first thing that comes into your head when you think of trading the open?
 
nakachalet said:
@TheRumpledOne

alright, you said you have proven it 4 ways, maybe even 5 or 6 ways:

but you and several others might have already forgotten the
7th way and it is the only way.... in trading....;

with all due respect to all
claiming to be consistently profitable
traders.... sim or otherwise.... LOL

you really do not have to waste much of your time at all,
you do not even have to .... SHOW ME THE MONEY....

in trading: if you can, or if you care to,

just show us your trading screen with
the automated marked up of your entries
and exits....

that is all you really really need,
in order for us.... to show you proper
and due respect and homage as being consistently profitable....

you or anyone else claiming to be consistently profitable,
surely won't need your lawyers' approval, nor your acct
permission now, do you.... to just show us eager beavers
your live trading screen, but hopefully not your after
the fact marked up pages with insertions and all....?

with all due respect to every trader,
trading live or sim ....
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You will never see a really consistent auto trading system..for if the big shots can't hack it..then rest assured the plebs will not :)

I have an automatic system for trading the open..that tells me my stop level..and my profit target..for one long trade and one short trade.. however..the most important bit is left to the little grey sponge that has evolved over billions of years..most do not realize what they have between their ears..and some even think that what they have between their legs is more important :)
 
Quantfisher said:
If your profit target is 75% of the ADR as I suggested, it would make sense to attempt a maximum of 3 trades per day based on the low-risk stop loss. Statistically speaking of course. Either long, short, long or short, long, short.

For a $100,000 account, if you risked .5% per trade, your worse possible day would be -$1500 while netting anywhere from $500 to $1500 on an average day. Again, statistically speaking.
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Actually..2 trades works best..the R:R can be set at 1:4..gaps have a big impact on decision rules..full automation will never work..it is not possible..not even for those with $millions to spend on software development..but why should they care..after all..it is not "their" money :)
 
MrScalper said:
Yes..the DAX is not US stocks :)

Mr Pesavanto's principle needs a little bit of fine tuning..but the overall approach is very valid!

What is the first thing that comes into your head when you think of trading the open?
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Volatility and significant price movement?

Yes I think your strategy will work more with stocks than futures. A stock price's open is generally the high/low of the day ~20% of the time. Not the case with futures though for some reason. It could be due to extended, overnight trading in futures unlike in stocks.
 
terminator8 said:
Volatility and significant price movement?

Yes I think your strategy will work more with stocks than futures. A stock price's open is generally the high/low of the day ~20% of the time. Not the case with futures though for some reason. It could be due to extended, overnight trading in futures unlike in stocks.
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Yes.. volatility is a 2 edged sword..but if you are in the right place..at the right time..then you can shift the odds dramatically!

The problem of course..is..most want to be right..whereas being right has nothing to do with making money..but being wrong has everything to do with it..so..do not try to be right..and when you are wrong .make sure you do something about it :)

Those who say to avoid the first 30 min of trading..well.. obviously do not know the best way to do it..or the best market to do it in!
 
MrScalper said:
You will never see a really consistent auto trading system..for if the big shots can't hack it..then rest assured the plebs will not :)

I have an automatic system for trading the open..that tells me my stop level..and my profit target..for one long trade and one short trade.. however..the most important bit is left to the little grey sponge that has evolved over billions of years..most do not realize what they have between their ears..and some even think that what they have between their legs is more important :)
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So what about the 0.50 and 0.20. 2.5:1. Apparently you finetuned it to get 4:1, along the years. Min. ADR still 0.50?

Regards, GO
 
This sounds like that garbage that The Rumpled One used to try and sell here called buy zone however it was backtested and found to be useless.
 
Quantfisher said:
One of the most overlooked methods to making money consistently is the opening trade. At the open:

1. Volatility creates opportunity in the form of price movement
2. A daily high or low is generally created within the first half hour near the open price

So, all a trader has to do is catch 75% of the ADR. The most important part is where you place your stop loss. For the answer, simply look up the definition of low-risk. Statistically speaking, I guarantee you will make money.

QS
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i always suspicious of the two-line methods (even without guarantees): either author does not know (yet) what he is doing or looking for fools
 
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