For the last few openings, I have been doing manual exists only and doing better. I limit my order to 10 and try to set my envelopes to get no more than 3 fills. The problem I have with automatic exits is the following â your winners get filled at a limited profit but your losses are unlimited. So, I got nailed a few times by having a few small winners and then one big loss that took back all the winnings and more. It seems over the long run, if you limit your upside, but have an unlimited downside, you are going to end up with a negative expectation. You also need some big wins to offset the big losses, so when I exit manually I can let the winners ride. I am interested in hearing how other traders manage this. Those who totally automate, are you using also automated stops â and how do you avoid the danger of a naked short sale?
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Opening Orders - 2009
- Thread starter Don Bright
- Start date
For the last few openings, I have been doing manual exists only and doing better. I limit my order to 10 and try to set my envelopes to get no more than 3 fills. The problem I have with automatic exits is the following â your winners get filled at a limited profit but your losses are unlimited. So, I got nailed a few times by having a few small winners and then one big loss that took back all the winnings and more. It seems over the long run, if you limit your upside, but have an unlimited downside, you are going to end up with a negative expectation. You also need some big wins to offset the big losses, so when I exit manually I can let the winners ride. I am interested in hearing how other traders manage this. Those who totally automate, are you using also automated stops â and how do you avoid the danger of a naked short sale?
1st post on this thread. 3rd day of opens orders. 4 longs and 2 shorts today, on light volume. 14 cents per share, with a 57 cent on TGT.
to Jones247 - I really struggled last year (really struggled), and have decided on changing to this strategy and others I may pick up at next weeks training. 3 days of opens is not a trend, but they have all been winners, a good change of scenery. Am looking forward of going to auto exit, it is hard to keep from making mistakes manually when you get all your fills at once.
to Jones247 - I really struggled last year (really struggled), and have decided on changing to this strategy and others I may pick up at next weeks training. 3 days of opens is not a trend, but they have all been winners, a good change of scenery. Am looking forward of going to auto exit, it is hard to keep from making mistakes manually when you get all your fills at once.
yesQuote from VinMan:
No Fills today. Used a 1.5% envelope on longs and 2% on shorts.
Question: Should I be making sure long entries are below prev day close and short entries above?
Today I had to go to 2% envelope on my shorts to get the entry prices above yesterday's close. Am I thinking correctly?