Opening Orders - 2008

Lets be real here. Surely this trade is so overcrowded and has been exploited to death. I can't believe with all the automated programs that one has a huge edge anymore.
Please give me some evidence to prove me wrong.
 
Quote from RhinoTrader:

How do you tell that the open will be below fair value before the open? are you basing it off of the pre-open indications?
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We look at where the S&P futures are trading, then adjust for fair value to see where they "should" open. From there we use an "envelope" to adjust the prices.

The exact calculations are buried somewhere in the threads listed on page 1 here, probably several times, so you might be able to dig them up if you want.
 
Got ganged up on this morning. Not a stellar effort on my part, as patience would have paid off, but was looking at red in almost every position.

4 long (1 win, 3 losses), 3 short losses, +73, 9300 shares

Had three small test positions mixed in, and bigger size in my winner helped to scratch the day.
 
Quote from chaimshmerel:

Lets be real here. Surely this trade is so overcrowded and has been exploited to death. I can't believe with all the automated programs that one has a huge edge anymore.
Please give me some evidence to prove me wrong.
More...

It is overcrowded and exploited to death. There is no edge other than the trader's own ability to trade.
 
Quote from chaimshmerel:

Lets be real here. Surely this trade is so overcrowded and has been exploited to death. I can't believe with all the automated programs that one has a huge edge anymore.
Please give me some evidence to prove me wrong.
More...

i pretty much make money every day unless i do something stupid...so i guess my edge is just imaginary...

6 fills / 5000 shares

3 long / 3 short / + 106.00

some people are just to smart for me....:confused:
 
+$700 today, and bootcampers made money. I'm letting them sample a couple of automated programs that will help them out.

As a side note: I've been hearing about the "overcrowded" and "exploited" thing for 15 years....and it is still one of the most consistently profitable strategies for our old timers and newbies as well.

The ability to send in $5,000,000 + worth of orders every day, to make a few grand a week, is limited to a group of less than 10,000 (more like 5,000) actual, discretionary traders I would guess. And since we trade primarily the really liquid stocks, and we all have our little nuances, it should work for some time in the future.

Some have trouble with it, and stop doing it. Some persevere and make it their primary strategy....to each his own.

And, the MOC's have been working great this year with all the volatility, yea!

Don
:cool:
 
The thing that stops a lot of people from using this strategy is the risk.

Any small error or irregular event could totally destroy you.

Sending out 5mil worth of orders can be dangerous for those that are under capitalized.

Lescor has said on this forum that he has made spreadsheet errors and it has cost him 100k in less than an hour.
 
When you read about so many hold onto losing positions even for several minutes, that is a problem isn't it.

Certainly there is only an edge, if you get a fill and blow out your position in a few seconds?
 
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