For the first time in my five years trading, my overnight and 2-day strategy have surpassed my daytrading profits ytd and by a big margin. Other prop traders doing similar? I attribute this to s&p futures not gapping >3-4 points in either direction the following morning like it used to and a big uptrend in several sectors. I bring this up because the firm I was with two years ago (blew up) pretty much discouraged overnighting cos they were undercapitalized. When I look back to those times, I feel I was blind to a whole another world of trading.
Overnight Trading anyone?
- Thread starter Lights
- Start date
july 21- july 22.
it's all about entry points. for instance, i initiated oil stocks long at the close july 21st and overnighted into slb and hal earnings. it put me in a completely different perspective than if i was to start buying the morning of the 22nd.. i did add onto the position btw. it would be much more difficult for myself to accumulate everything within that 9:30-4:00 period and dump at the close the same day and have to do it again the next day, and then the next, and then the next..
when i observe a general uptrend in a stock or sector i retain a "core" position, % of original position that is essentially multiday, multiweek and trade around it. the core position is set at a deeper stop loss, usually at cost while i trade the balance in and out within a 2 day period. the base position is usually closed out when i feel like it but the purpose of it is to let the position ride, which is important aspect of trading. btw, it's all discretionary. this was not possible at my previous firm when everything needed to be closed out at 4.
it's all about entry points. for instance, i initiated oil stocks long at the close july 21st and overnighted into slb and hal earnings. it put me in a completely different perspective than if i was to start buying the morning of the 22nd.. i did add onto the position btw. it would be much more difficult for myself to accumulate everything within that 9:30-4:00 period and dump at the close the same day and have to do it again the next day, and then the next, and then the next..
when i observe a general uptrend in a stock or sector i retain a "core" position, % of original position that is essentially multiday, multiweek and trade around it. the core position is set at a deeper stop loss, usually at cost while i trade the balance in and out within a 2 day period. the base position is usually closed out when i feel like it but the purpose of it is to let the position ride, which is important aspect of trading. btw, it's all discretionary. this was not possible at my previous firm when everything needed to be closed out at 4.
Quote from traderjmb:
Could you please elaborate on this a little more.... Thanks!
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Lights;
suprised you havent seen it sooner
strong uptrends [ for years]now]
probably more so than futs.
Gaps against one still happen occasionaly;
probably not as much as some over levereaged fear,
but when overleveraged, may be prudent to be fearful.
the superior entry point essentially gives me more cushion for the pushin. i see the trade from a completely different angle this way. sure, i've been burnt on occasion, but that's part of the game. i always evaluate risk to reward and have devised a basic formula to optimize what should be my max size according to the situation. that is key to this strategy i think. affecting size to conditions.
btw, SQM was (is) a good one.
btw, SQM was (is) a good one.
Quote from murray t turtle:
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Lights;
suprised you havent seen it sooner
strong uptrends [ for years]now]
probably more so than futs.
Gaps against one still happen occasionaly;
probably not as much as some over levereaged fear,
but when overleveraged, may be prudent to be fearful.
btw it wasn't possible for me to do anything about strong uptrends beside prop daytrade them until now. i don't like to use my personal money to trade. it's aftertax money and the agencies don't give you enough break when you lose personal money.
Quote from murray t turtle:
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Lights;
suprised you havent seen it sooner
strong uptrends [ for years]now]
probably more so than futs.
Gaps against one still happen occasionaly;
probably not as much as some over levereaged fear,
but when overleveraged, may be prudent to be fearful.
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Lights;
I wanted to buy today & did start scalng in;
closed position in some longs in energy sector today.
Like Rich Dennis brilliantly said ''there is an insurance premium for overnight [swing trading']' !!!
SQM looks fine
Actually cant blame some daytrading companies for discouraging overnigh trading unless its a basket of stocks;
even then it can be larger than average loss occasionaly
murray nickname t turtle