All buys, 5 of them +68 cents. yea. Obviously did not place any sell orders due to the 20 S&P point under FV pre-markets.
Don
Don
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Opening Orders - 2008
- Thread starter Don Bright
- Start date
Quote from Don Bright:
All buys, 5 of them +68 cents. yea. Obviously did not place any sell orders due to the 20 S&P point under FV pre-markets.
Don
Thanks for the recent reminder about doing only buys or sells depending on futs "gap". I haven't been posting here but I am now getting more used to some of the larger moves possible with this tactic.
Hey Guys, I have a relatively simple question for you.
With these opening orders what do you use as a decision making tool in closing the trade? I mean if the S&P has gapped down do you immediately cover your short fills and ride your longs hoping the gap fills? Do you look for news? Also I read a post on here from Don Bright about how you would change your envelope size on buys or sells dependent on what the market is doing, and with this idea what are your indicators? Anything besides the s&p futures?
With these opening orders what do you use as a decision making tool in closing the trade? I mean if the S&P has gapped down do you immediately cover your short fills and ride your longs hoping the gap fills? Do you look for news? Also I read a post on here from Don Bright about how you would change your envelope size on buys or sells dependent on what the market is doing, and with this idea what are your indicators? Anything besides the s&p futures?
1 fill, 1 long loser. -0.13.
Could/should have get out flat, PRU. Could have been worst.
Cancelled a lot.
Could/should have get out flat, PRU. Could have been worst.
Cancelled a lot.
Quote from JPRDT:
Hey Guys, I have a relatively simple question for you.
With these opening orders what do you use as a decision making tool in closing the trade? I mean if the S&P has gapped down do you immediately cover your short fills and ride your longs hoping the gap fills? Do you look for news? Also I read a post on here from Don Bright about how you would change your envelope size on buys or sells dependent on what the market is doing, and with this idea what are your indicators? Anything besides the s&p futures?
This to my limited understanding is where the art of this tactic comes in. For me I use a few things.
1. I assume I am getting filled with the specialist on an imbalance with their orders, so I am on the side of them as they need to work off their excess inventory in the first minute or so of their day, as they fill the orders they have at their open.
2. So if the market (futs) is gapping up, and I get filled short, I assume that the stock will fade the gap with the snap back for at least a few cents. At times with KO I get filled and I am immediately up +.40 and I will close it fast. Others will slowly move in my favor.
3. Under some circumstances I will need to trade my way out of something like I did with CHK the other day. It didn't really move in my favor for a bit of time, but the futures were filling the gap and I had a idea to get out of CHK with a loss if it broke above whole number resistance over head, which it never did. Then I looked at the fair value of CHK (where it possibly "should've" opened with futs) and waited for CHK to fade to that, which it did by +.80. I only took about +.20 tho because after waiting a while I bailed with some green. I also looked at oil stocks which all gapped up and some were selling off hard. In general I can make money trading CHK so I was comfortable doing this. At that point you could bring up other oil stocks and trade them.
I would'nt mind some feedback Don on some of this. Anyway, only month 3 or so here with this. I am up over all, doing small size.
A fixed target % based on fill price. Then I tape/chart read. The S&P move is in the equation but it's not the decision maker. I dont try to ride that much. I know how I expect per stock ballpark and it's there or it's not there.Quote from JPRDT:
With these opening orders what do you use as a decision making tool in closing the trade? I mean if the S&P has gapped down do you immediately cover your short fills and ride your longs hoping the gap fills?
Before sending the orders. Cancell all the ones that have news. After 9:30, no news for me but you could use trade the news audio (real time news) and catch some wacky moves that might occur once in a while. When you have 6 fills you dont really have the time to read the news ;-)Quote from JPRDT:
Do you look for news?
To me it depends on market conditions and my level of confidence. When I'm uncertain I widen the enveloppe. I dont have any indicator, it's all based on feeling. As reliable as numbers when you know how to use them (all built in by experience). But in general I guess you are refering to Don not sending buy orders on big up days and no sell on big down days. You want to buy at dirt cheap price and sell at ridiculus prices, you provide liquidity. On big down moves if you short the are chances the stock is stong and it start going up after the down open. I might do it on big big moves. You can also widen you enveloppe on the other side which I prefer.Quote from JPRDT:
Also I read a post on here from Don Bright about how you would change your envelope size on buys or sells dependent on what the market is doing, and with this idea what are your indicators?
Good luck
5 fills, 4 longs, 1 short, 3 winners, 2 losers. +0.06 average.
Cancelled a lot.
Cancelled a lot.