Quote from silk:
Anyone think it is possible to day trade stocks (not futures and close out positions by end of day) with buying power in excess of $20 million?
It can be frustrating to close out of 20,000+ share positions at end of day without slippage. So unless you are trading S&P100 names where there isn't much money to be made, I would think it would be a great liquidity hurdle to day trade stocks with greater than $15 or $20 million buying power. The good day trading stocks are usually under $10 billion market cap and often do not accomadate 30,000 share positions. Some do, but not day in day out.
So therefore I assume that virtually nobody is daytrading with $20 and $30 million buying power in stocks. Am I wrong?
So if you have $30 million+ with which to day trade, you won't be day trading stocks. I guess currencies or futures would be your only bet. I guess thats why hedge funds are all in Spyders and futures.
To do that amount it takes good coordination.
I do not want to post publically on this but here is a good scenario to consider that I am involved in.
You need to use a boutique rather than a regualr type brokerage.
You will be using several accounts most likely and that calls for being fair among the accounts.
I limit a money stream in one equity to 100,000 shares (think 30 dollar stock).
So now you can see a distribution of capital and how several streams gets you to 20 mil.
For the trading, there is an other trade off. I have gone to position trading for making money and i trade the most frequent cycles of good magnitude. This means 6 to 8 days for a hold and a return of 10% net out of a possible 20%.
To move in or out, your account manager will give you his # and let you go to the trading desk directly in the boutique. there you request that the 100k shares be "bleed" in or out by prearrangement. My simple rule is: use normally tradied block size and always have the tab running at 10% of cummulative volume for the day.
I know that you want an intraday suggestion and i am offering you a diffrent scenario. I believe that 10% every 6 days by rotation of ins and outs (6 streams @ 3 mil each) is easier than 1.7% per day, day in and day out for all of 20 mil. It comes down to a volume constraint in the part of the market than has high money velocity for making money.
