Opening Orders - 2008
- Thread starter Don Bright
- Start date
Gehko's OO Stat:
Since 6/2/08 6.4% of stocks did not have at least $0.01 gap fill.
speaking of news
http://view.break.com/516661
Since 6/2/08 6.4% of stocks did not have at least $0.01 gap fill.
speaking of news
http://view.break.com/516661
Yeah, I missed that. Cost me a few grand.
Thanks for the huge laugh...
This strategy was originally devised as a way for you to trade exactly like the specialist/market maker.
The specialist is finding a balance point to open the stock. When that balance point is beyond the "fair" value, as compared to the balance between the S&P futures and the S&P cash, you will quite often get a "sling" shot while the S&P futures and cash get back into their normal prem difference.
This was originally devised to just trade like a specialist. Take the same side as the specialist on the open and feed out your position as it goes your way for the first few minutes after the open.
I think where a lot of people go wrong is their expectations. This is a scalp trade for a couple of pennies for a few minutes.
You can branch off from that point and try to capture larger moves, but at that point you have moved from your original objectives to managing a swing trade.
Looking at it over the course of time, the results are very similar to almost all "scalp" trading. You have a lot of small wins and losses and maybe once each month (or less) the market opens at an extreme and just completely reverses, so fast that your "feel" tells you to "stay with it". Those are the days where you make your huge profits.
Of course, there are some days during the year where the market opens at an extreme and just keeps going relentlessly and you get stuck trading your way out of a big, fat mess.
<b>For me, this strategy wound up taking up too much of my valuable time during the first 15 minutes of trading. I determined, that for me, I was not paying myself enough during this time, using the OOS, to do it on a daily basis.</b> I have other strategies that are working better for me during the first 30 minutes of trading, so I try to "cherry pick" the times when I will do the OOS .
It is a good strategy for those who trade at a "prop" firm and need to do their 200k-400k shares each month to pay for desk fees, etc. You will do a lot of volume. You will just need to determine for yourself if you are getting paid properly for your time and trading.
The specialist is finding a balance point to open the stock. When that balance point is beyond the "fair" value, as compared to the balance between the S&P futures and the S&P cash, you will quite often get a "sling" shot while the S&P futures and cash get back into their normal prem difference.
This was originally devised to just trade like a specialist. Take the same side as the specialist on the open and feed out your position as it goes your way for the first few minutes after the open.
I think where a lot of people go wrong is their expectations. This is a scalp trade for a couple of pennies for a few minutes.
You can branch off from that point and try to capture larger moves, but at that point you have moved from your original objectives to managing a swing trade.
Looking at it over the course of time, the results are very similar to almost all "scalp" trading. You have a lot of small wins and losses and maybe once each month (or less) the market opens at an extreme and just completely reverses, so fast that your "feel" tells you to "stay with it". Those are the days where you make your huge profits.
Of course, there are some days during the year where the market opens at an extreme and just keeps going relentlessly and you get stuck trading your way out of a big, fat mess.
<b>For me, this strategy wound up taking up too much of my valuable time during the first 15 minutes of trading. I determined, that for me, I was not paying myself enough during this time, using the OOS, to do it on a daily basis.</b> I have other strategies that are working better for me during the first 30 minutes of trading, so I try to "cherry pick" the times when I will do the OOS .
It is a good strategy for those who trade at a "prop" firm and need to do their 200k-400k shares each month to pay for desk fees, etc. You will do a lot of volume. You will just need to determine for yourself if you are getting paid properly for your time and trading.
Here's my partial (slow old man) fill from my Redi, with times.
NYSE 09:30:02 FWW003 SSH 1000 BBY 44.90 ON LMT OPG 41209
NYSE 09:30:24 FWW025 BUY 500 BBY 44.79 LMT D 1 41209
NYSE 09:30:24 FWW025 BOT 200 BBY 44.78 ON LMT DAY 41209 LVS 300
NYSE 09:30:24 FWW025 BOT 100 BBY 44.78 ON LMT DAY 41209 LVS 200
NYSE 09:30:24 FWW025 BOT 100 BBY 44.78 ON LMT DAY 41209 LVS 100
And that was a horrible 22 second delay. No need for any big concern, I was just stating what happened today.
Don (from lovely North Stonridge, CT. LOL)
Gotta get some automation, LOL...as discussed earlier.
Nice seeing you last night, glad some ET'ers made it.
Don
Quote from gehko:
I think you mean North Stonington, CT
As an observer only of the posts in this journal for the last few years, I can say that this same discussion, that OO's are dead, comes up each year at least once. I actually find it good to know I'm not the only one who's strategys don't work perfect all the time, and need to be tuned up every so often.
I'm strictly futures side for quite a few years now, although working on a business expansion currently, and have made quite a few alterations and additions over the years, but the base plan is still the same. Now back to studying for that series 7 so I can start posting in this journal in the near future also.
I'm strictly futures side for quite a few years now, although working on a business expansion currently, and have made quite a few alterations and additions over the years, but the base plan is still the same. Now back to studying for that series 7 so I can start posting in this journal in the near future also.Thats pretty impressive for an old man. "lol"