Opening Orders - 2008
- Thread starter Don Bright
- Start date
Basic, quick. +$340.
Tomorrow is expiration, plan accordingly guys!
Don
Tomorrow is expiration, plan accordingly guys!
Don
No fills on full positions, stupid BMC took me down on 1000 shares. Didn't see any news on it. -338 on the day all told.
Would have been a nice day if my 6 other fills were full size.
Would have been a nice day if my 6 other fills were full size.
I tend to average between 10%-20% day after day. I do change my envelopes (as you know, and we've discussed) based on several factors. For example, today, even though futures were up 5 points, they were basically flat to fair value. .6 buy, .4 sell because we were up so much yesterday (and GE, one of my prime indicators) was not trading up and did open down.
Don
It's probably not that different. I get around 10% fills going anywhere from .2 to .8 on the envelope.
This is the tip of the iceberg of what I am wondering. I am finding that there are a lot of considerations with NYSE openings, some of them quite subtle.
I just built an app to trade this way, and I am still placing 100-share orders as I work out the bugs and get a feel for the system. Probably the most important issue longer term is how much action I want. I am looking for an approach that I can mostly or fully automate, and that I can continue to use as I get older and more easily confused. Probably my biggest problem currently is that I have trouble managing long and short positions at the same time.
I am starting out with high beta stocks because that is what I am most familiar with, but I may have to switch at some point. The higher the beta, the larger the envelope should be. Also the bigger the envelope, the fewer fills and the more likely they are to be profitable. I had my first fill with a 2% envelope. Now I have it at .9% and I got 5 fills yesterday and 3 today out of 20 orders.
It seems to me the most important factors are: stock selection, envelope setting, and exit strategy. I don't much care for daytrading out of my fills, so I am looking to get fewer fills with better pofitability going in. Nirvana would be to fully automate the exits, but that sounds ambitious.
[rwk]
