Opening Orders - 2009

5 fills, 4 shorts 1 long, 4 loss 1 win.
-0.11 avg

ALL toughest one today for opens.....Traded out of it later on but outside the scope of open strategy.

This month has been rough on avg so far.
 
Do all of you use large cap, high volume stocks for your OPG strategy? What has been your experience using less liquid small caps that are not volatile and therefore its easier to manage multiple positions without getting too stressed out?
 
Quote from goldenarm:

Do all of you use large cap, high volume stocks for your OPG strategy? What has been your experience using less liquid small caps that are not volatile and therefore its easier to manage multiple positions without getting too stressed out?
More...

I start out new people with larger cap stocks because of the liquidity, they won't get stuck losing 50 cents or anything. But, each trader can experiment with other Listed stocks, of course.


Don
 
10 fills, 2 longs, 8 shorts, 7 winners, 3 losers, +0.07 average.
Good day. Mostly financials.
A little sloppy on the news, went more aggressively. I had this feeling that it would be good since the ES was up. But still a little larger on the envelope.
2 late losers, USB, VMW.
 
Quote from goldenarm:

Do all of you use large cap, high volume stocks for your OPG strategy? What has been your experience using less liquid small caps that are not volatile and therefore its easier to manage multiple positions without getting too stressed out?
More...
Mostly large caps here, over 500M market cap, 1M average daily volume are a minimum. Maybe more.
Spreads in lower caps may kill you. I'm thinking 10-20 cents and then you want to cut it out!
I dont see any reason why lower caps would be less volatile. Less trades for sure but they may also move fast and gap huge.
I dont know for the fill rate and the imbalance though. Maybe there is a huge premium to provide liquidity on thoses, I dont know.
 
Quote from total_keops:

Mostly large caps here, over 500M market cap, 1M average daily volume are a minimum. Maybe more.
Spreads in lower caps may kill you. I'm thinking 10-20 cents and then you want to cut it out!
I dont see any reason why lower caps would be less volatile. Less trades for sure but they may also move fast and gap huge.
I dont know for the fill rate and the imbalance though. Maybe there is a huge premium to provide liquidity on thoses, I dont know.
More...

Thanks for the input. I know some guys who've done OPG on the big names but they find that when they get filled, a lot of times the stocks just blow right by their entry points and they get creamed because of market exposure.

I'd like to develop a basket of stocks that aren't super liquid and I can take advantage of good fills from the Specialist. Maybe stocks between 500K and 2M average daily volume. Then I can increase my envelope a bit, which would mean fewer fills but better price improvement.

Ideally, I want to be out of all my positions before they are subject to market exposure. I only want to take advantage of prices that revert back to fair value and not trade momentum OPG.
 
Pretty good opg this morning..... DD, HPQ and GE. + 40 cents.

But, then I decided to keep trading DD, and gave some back... oh well, green for the day....

Have a great Holiday everyone!

Don
 
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