Opening Orders - 2009

[Don Bright]

Quote from trend2009:

Don,

you said you traded DD for 33 cents profit today. As I know, you only trade with the specialist, that is, you only short when stock opens higher and buy when the stock opens lower, because that is the case when the specialist has to step in. But DD today opened higher than its yesterday's close. Do not you think it contradicts with the OPG strategy?

No, this is exactly how it works. I shorted at 32.49 (with the Specialist), and bought it backe 8 seconds later at 32.16.

The idea of the slingshot retracement (yes, so the Specialist can get his shares back) is why we go "with" the Specialist on opening only orders.

All the best,

Don

 

[trend2009]

Don,

I think I may get something wrong here. I wonder if you were talking about OPG or closimg imbalance. from yahoo and esignal, DD opened at 32.10, and traded up in the first minute. from the picutre you attached, it shows LOC order instead of OPG order. so I guess you were talking about closing imbalance instead of open imbalance?

 

[total_keops]

Quote from trend2009:

Don,

I think I may get something wrong here. I wonder if you were talking about OPG or closimg imbalance. from yahoo and esignal, DD opened at 32.10, and traded up in the first minute. from the picutre you attached, it shows LOC order instead of OPG order. so I guess you were talking about closing imbalance instead of open imbalance?

It really was the OPG. His activity is in accord to the time and sales I see.

 

[trend2009]

Don & total_keops,

I can also see DD traded at 32.49 at 9:30:22. How could yahoo and esignal both say DD opened at 32.10? from esignal time and sale window, at 9:30:22, 1600 shares traded at NMS, 100 shares traded at BATS, another 400 shares traded at PSE. at that moment, all the above shares on the three exchanges traded at 32.49. why DD opened at the three exchanges? I though the openning should occur at NMS. Any thoughts?

 

[total_keops]

Quote from trend2009:

Don & total_keops,

I can also see DD traded at 32.49 at 9:30:22. How could yahoo and esignal both say DD opened at 32.10? from esignal time and sale window, at 9:30:22, 1600 shares traded at NMS, 100 shares traded at BATS, another 400 shares traded at PSE. at that moment, all the above shares on the three exchanges traded at 32.49. why DD opened at the three exchanges? I though the openning should occur at NMS. Any thoughts?

Yahoo is consolidated data (all the ECNs) so you sometimes get an open price that is way off. For esignal I dont know what they have.
When the NYSE open, in the same second, many things happen. So you can get the NYSE open at 9:30:22:032 and then the other exchanges can trade based on thah info 9:30:22:145...
You can even get IN/OUT in the same second!

 

[total_keops]

Quote from Don Bright:

OK, I have attached the spreadsheet for this boot camp. Keep in mind that these people are pretty much all brand new to trading, even using a platform. We had about 15 overall, some a bit timid, about half got fills every day.

As mentioned, today was exceptional, but the overall results were about average. In an effort to make sure the traders kept their proper trading records, I kept a log this time, here it is.


Don

Well done, some are good on only 10 stoks!.

 

[Don Bright]

Quote from trend2009:

Don,

I think I may get something wrong here. I wonder if you were talking about OPG or closimg imbalance. from yahoo and esignal, DD opened at 32.10, and traded up in the first minute. from the picutre you attached, it shows LOC order instead of OPG order. so I guess you were talking about closing imbalance instead of open imbalance?

The blue lines are 6:30 AM my time, 9:30 NYSE time, and are the actual NYSE opening prices, along with my closing trades a few seconds later.

Be careful of "consolidated quotes" from Yahoo or other places that simply take a 9:30 snapshot form ECN's for opening and closing prices.

Don

 

[Don Bright]

Quote from total_keops:

Well done, some are good on only 10 stoks!.

Thanks...you know, as hard as I try to keep things simple sometimes.... and be totally frank about our strategies...some just don't seem to get it.... it's not "me" ... I'm just the messenger, and I try to show new people some real "stuff" that works.... this group was a prime example, mostly new people, following some basic instructions.......

Thanks again...all the best,

Don

 

[ericyyy]

Thank you.

It is very useful to see these data. I appreciate it. Now i know I'm missing out. Was wondering if this can handle like 1000+ stocks instead of just the dow30?

Regards,
Eric

Quote from Don Bright:

See if this works for you to see the imbalances etc.

http://www.pairnomicshelp.com/REDI v7/DowImb/DowImb.htm

Don

 

[lescor]

Don't be so quick to assume it's a free money strategy. I have yet to see Don post the details of a trade where he's short on the first print and down a couple thousand bucks on the next one, but trust me, that happens. If you think you'll just control your losses with stop orders, think again.

If you think you can make x $ with the dow 30 and a multiple of that with more stocks, don't underestimate the blow out risk when 30% of your orders get filled and you're on the wrong side of almost all of them.