Opening Orders - 2009

Quote from jgltrader:

We tried something like the large envelope with more stocks but found that the ones that are opening that far from fair value; even if its not a news related stock will tend to keep going and be very painful. We had some fun gains but the losers definitely left a stronger taste in our mouths...
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To continue on that vibe, the idea still remain that with many fills you can average down some losers with the winners. All you need is positive expectation overall to net a profit.
 
5 longs, 4 shorts, 5 winners, but got smoked on a JPM short for net loss; should have pulled from list - smarted from that one all day.
 
Quote from jgltrader:

We tried something like the large envelope with more stocks but found that the ones that are opening that far from fair value; even if its not a news related stock will tend to keep going and be very painful. We had some fun gains but the losers definitely left a stronger taste in our mouths...
More...

All I can say is I use the very large envelope on many stocks and I can say that I have not made $ doing so.

However, you will find that if you take official NYSE open data and run a backtest that the larger the stock opens up from fair value the bigger your edge is. It is a very clear correlation, however when you run this live, somehow you are not (or at least I am not) getting the executions you need to match the backtest.

I have noticed that it seems "most" people use a small list of stocks use a smaller envelope and remove all news stocks.

I have yet to make a dollar w/ this strategy, so I'm going to try something different
 
Excellent morning. Only 3 fills, but perfect....Hi Fives all around the office.

GE +14 cents. HPQ + 15 cents. and WYW + 55 cents in 30 seconds.

And, first day for boot campers...80% winners... a couple of the basic mistakes, but nothing major, yea!

It's important to instill in the new people, that this strategy is the single best way to start their trading careers. Normally make money, makes you happy in the morning...a more positive attitude to trading in general.


Don
 
5 fills, all longs, 4 winners. MS loser (-.14), best winner was WYE for .37, kept going from there as well. I had a big sell envelope with no takers.
 
27]Jan

1:30pm
Don Bright, Bright Trading, LLC co]founder & card counter turned stock market millionaire
Topic
Trading and Poker Parallels: Risk? Yes. Reward? Of Course, But the Similarities Go Deeper
Bright Trading is one of the largest Professional, Proprietary Stock Trading Firms in the U.S., with trading rooms Nationwide (and Canada) with hundreds of traders. Formed in 1992 by two long time traders and friends, with the intention of providing.

Don and Bob lecturing at MIT next week.

I can't invite anyone, a "closed session" but thought I would post just for fun.

http://www.stocktrading.com/MITevent2009.pdf

"Professor" Don, LOL.
 
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