Is "Buy bid, sell ask" practical?

0008 · Sep 12, 2003

I tried using this method in a trading simulator and made quite a lot of winning trades. :eek: But in the real world, is it possible?

spyderman · Sep 12, 2003

Depends how much is ahead!

inandlong · Sep 12, 2003

Sure it's possible with DAT. But the simulators all make it seem probable, and easily so. That is the difference. Simulators operate on the premise that if there is a bid or ask at a price, you get the fill. Real time isn't as nice.

murray t turtle · Sep 12, 2003

Quote from 0008:

I tried using this method in a trading simulator and made quite a lot of winning trades. :eek: But in the real world, is it possible?

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Buy bid works some if you work it;
Like vega said , when it reverses.

Never did mind helping a market maker or specialist by buying ask price ,sell bid !!!;
works swing trading or position trading some ,buying bid.

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''The plans of the diligent tend only to advantage''- Solomon, trader king

gnome · Sep 12, 2003

Intuitively, it seems to me one can NEVER really buy the bid. When you try to buy the current bid, you don't get filled until the market has moved down so that your bid has become the market's ask.

Besides, if you think your success will be jeopardized by one tick on each side, you're fishin' in a dry hole anyways!

Ditch · Sep 12, 2003

Quote from inandlong:

Sure it's possible with DAT. But the simulators all make it seem probable, and easily so. That is the difference. Simulators operate on the premise that if there is a bid or ask at a price, you get the fill. Real time isn't as nice.

What is DAT?

0008 · Sep 12, 2003

Quote from gnome:

Besides, if you think your success will be jeopardized by one tick on each side, you're fishin' in a dry hole anyways!

I agree. But for a very short-term trader, the usual profits are a few ticks, this may cause some problems.

DHOHHI · Sep 12, 2003

Quote from 0008:

I tried using this method in a trading simulator and made quite a lot of winning trades. :eek: But in the real world, is it possible?

At least 90% of my trades are bought at the bid and sold at the ask. Granted the trade may go against you a small amount if you get those fills but I try to play the probabilities of correlating the overall market movement with the individual stock movement.

lindq · Sep 12, 2003

Quote from 0008:

I tried using this method in a trading simulator and made quite a lot of winning trades. :eek: But in the real world, is it possible?

No, it isn't possible consistently to gain from this. Sure, you can often hit the bid, but when the stock moves against you the few cents you had hoped to make on the spread will look very small. A few of those moves...and you will have many...will wipe out any gains you may have made on trading the spread.

I am assuming here that you are speaking of buying the bid and selling the ask as a quick in-out trade.

Free Thinker · Sep 12, 2003

it is possible with nyse. that is basically what enveloping is. search elite for threads on enveloping. if the specialist wants to make a print at the bid or less and you have an order in he has to fill you too.