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my trading...
- Thread starter sobemark
- Start date
I've been trading a very similar sytem that plays reversals. Have you considered hedging the first order either with options or stock? For example say your first position is long 1000s at 20.30. You then short 1000 at 20.30 or buy puts.
The reasoning is because typically you don't nail the bottom This way you can capture some profits with the trend as well as protect your original position.
So in this example lets say the price moves to 20.70 you sell your long 20.30 and short another 1000 at 20.70. Then the stock finally dumps to 20.20 and you exit your shorts.
The main drawback I see is if you picked the bottom and you have an immdiate reversal. A remedy to that could be to place a smaller trade against your reversal, creating a partial hedge.
Also have you considered starting with lighter positions and moving up the share amount as you add. Ie. buy 500 @20.30 buy 700 @ 20 buy 1000 @ 19.70?
Jim
The reasoning is because typically you don't nail the bottom This way you can capture some profits with the trend as well as protect your original position.
So in this example lets say the price moves to 20.70 you sell your long 20.30 and short another 1000 at 20.70. Then the stock finally dumps to 20.20 and you exit your shorts.
The main drawback I see is if you picked the bottom and you have an immdiate reversal. A remedy to that could be to place a smaller trade against your reversal, creating a partial hedge.
Also have you considered starting with lighter positions and moving up the share amount as you add. Ie. buy 500 @20.30 buy 700 @ 20 buy 1000 @ 19.70?
Jim
Quote from jmoo:
I've been trading a very similar sytem that plays reversals. Have you considered hedging the first order either with options or stock? For example say your first position is long 1000s at 20.30. You then short 1000 at 20.30 or buy puts.
Jim
In case you didn't notice, buy 1000, sell 1000 = position closed. But unless you have an account with another broker this could not work, and even if you did, all you would benefit is both brokers. Puts would be the hedge.
Make 'em pretty, Chris
hey .. guys please review this journal let me know if you are interested in me posting again .. I am constructing a live room and blog for this style which should be up and running by the new year ..
As the volatility in the markets have been on the rise, this style of trading gets better and better ...
if you are interested just PM me .
thanks
As the volatility in the markets have been on the rise, this style of trading gets better and better ...
if you are interested just PM me .
thanks
Quote from jmoo:
Also have you considered starting with lighter positions and moving up the share amount as you add. Ie. buy 500 @20.30 buy 700 @ 20 buy 1000 @ 19.70?
Jim
this is something i have toyed with this year.
Scaling into the position with smaller lots ... yes i have found myself with a much better average price ...
Quote from sobemark:
this is something i have toyed with this year.
Scaling into the position with smaller lots ... yes i have found myself with a much better average price ...
hey guys ..
i have had no trades yesterday ..
and i would have hit GRMN this morning but my connection was lost ..
my colleagues did enter with call options and managed more than a point ..
again ..this month is always slow for me ...but at any point ..will discuss any trade i make ..
ciao'
just did a small trade in SLM ..
should have laid into it a bit more ...
ins:
10:03:03 Buy 300 SLM at 24.85 on ARCA (300 traded @ 24.7400) Executed
10:04:06 Buy 300 SLM at 23.79 on ARCA (300 traded @ 23.7900) Executed
outs:
10:06:31 Sell 300 SLM at 24.82 on ARCA (300 traded @ 24.8200) Executed
10:09:36 Sell 300 SLM at 24.98 on ARCA (300 traded @ 24.9800) Executed
like i said ..december is a dead month ...
should have laid into it a bit more ...
ins:
10:03:03 Buy 300 SLM at 24.85 on ARCA (300 traded @ 24.7400) Executed
10:04:06 Buy 300 SLM at 23.79 on ARCA (300 traded @ 23.7900) Executed
outs:
10:06:31 Sell 300 SLM at 24.82 on ARCA (300 traded @ 24.8200) Executed
10:09:36 Sell 300 SLM at 24.98 on ARCA (300 traded @ 24.9800) Executed
like i said ..december is a dead month ...
just completed a nice CELG trade ..beautiful fear capitulation
my lot sizes are smaller but more frequent ..i have found i get a better avg price on my scale...
INS:
9:38:47 Buy 300 CELG at 44.40 on ARCA (300 traded @ 44.4000) Executed
9:42:23 Buy 300 CELG at 43.48 on ARCA (300 traded @ 43.4800) Executed
9:43:02 Buy 300 CELG at 43.48 on ARCA (300 traded @ 43.0400) Executed
9:44:05 Buy 300 CELG at 42.83 on ARCA (300 traded @ 42.6300) Executed
9:45:01 Buy 300 CELG at 42.83 on ARCA (300 traded @ 42.3600) Executed
9:45:31 Buy 500 CELG at 42.83 on ARCA (500 traded @ 41.8400) Executed
9:46:06 Buy 500 CELG at 42.83 on ARCA (500 traded @ 42.0140) Executed
OUTS:
9:47:00 Sell 500 CELG at 42.82 on ARCA (500 traded @ 42.8200) Executed
9:47:52 Sell 300 CELG at 43.21 on ARCA (300 traded @ 43.2100) Executed
9:48:37 Sell 300 CELG at 43.11 on ARCA (300 traded @ 43.2933) Executed
9:49:03 Sell 300 CELG at 43.36 on ARCA (300 traded @ 43.4150) Executed
9:49:15 Sell 300 CELG at 43.82 on ARCA (300 traded @ 43.8200) Executed
9:51:07 Sell 300 CELG at 43.76 on ARCA (300 traded @ 43.8100) Executed
9:51:26 Sell 500 CELG at 44.21 on ARCA (500 traded @ 44.2100) Executed
$2079 usd
my lot sizes are smaller but more frequent ..i have found i get a better avg price on my scale...
INS:
9:38:47 Buy 300 CELG at 44.40 on ARCA (300 traded @ 44.4000) Executed
9:42:23 Buy 300 CELG at 43.48 on ARCA (300 traded @ 43.4800) Executed
9:43:02 Buy 300 CELG at 43.48 on ARCA (300 traded @ 43.0400) Executed
9:44:05 Buy 300 CELG at 42.83 on ARCA (300 traded @ 42.6300) Executed
9:45:01 Buy 300 CELG at 42.83 on ARCA (300 traded @ 42.3600) Executed
9:45:31 Buy 500 CELG at 42.83 on ARCA (500 traded @ 41.8400) Executed
9:46:06 Buy 500 CELG at 42.83 on ARCA (500 traded @ 42.0140) Executed
OUTS:
9:47:00 Sell 500 CELG at 42.82 on ARCA (500 traded @ 42.8200) Executed
9:47:52 Sell 300 CELG at 43.21 on ARCA (300 traded @ 43.2100) Executed
9:48:37 Sell 300 CELG at 43.11 on ARCA (300 traded @ 43.2933) Executed
9:49:03 Sell 300 CELG at 43.36 on ARCA (300 traded @ 43.4150) Executed
9:49:15 Sell 300 CELG at 43.82 on ARCA (300 traded @ 43.8200) Executed
9:51:07 Sell 300 CELG at 43.76 on ARCA (300 traded @ 43.8100) Executed
9:51:26 Sell 500 CELG at 44.21 on ARCA (500 traded @ 44.2100) Executed
$2079 usd