Some "Bright" strategies...

D

Don Bright

Several of you have asked about specific "working" strategies employed by our traders. The following is offered in the Spirit of sharing, and is not in any way to be construed as an ad for Bright Trading. If anyone, yes anyone, thinks differently then I am glad to take down the post. I can only refer to what our traders are doing since that is all I am priveleged to. Here goes....

Our traders have been doing very well with pair trading using various risk parameters and methods. From simple "daytrading" the various pairs, to risk expansion via overnight positions. This entails some individual money management (which we strongly encourage) and a full understanding of historical movements and standard deviations based on volatility and the stock's individual beta's. Since we have several of our top people completing the "beta testing" of a couple of different versions of automation, we should have a good working model for new (experienced) traders to utilize.

The "opening" plays are still extremely viable, and we will be allowing automation to more people as soon as we dedicate some servers.

Tape reading still plays an important part even though we have changed the visual monitor view somewhat. Following short sellers and "envelope" orders are doing well.

Anyway....just some basics to think about (did not mean to sound "technical" in any way, and figure you guys are already trading so this all should sound basic to you). I cannot really go into too much detail here, not fair to our traders, but look for some cool stuff for the new year.
 
Hi Don,

Thanks for taking the time to post some strategies. I have always wondered how pairs are traded intraday. One of the senior members here, Dustin, started a discussion awhile back about pairs trading, and from what I gathered, most pairs trading is longer term due to the fact that the expansions and contractions in the spread occurred over several days. I fully understand your desire to not share your proprietary stuff, but would you be willing to explain how an intraday pair trade would go? I've heard that some prop traders trade these many many times during a day, and I'm wondering how they can expect the pairs to converge/diverge so quickly...it would seem there is a risk that the pairs could continue in the opposite direction for days at a time.

I hope my question made sense. Thanks for any insight you can give.

Kirk
 
Originally posted by Don Bright
Several of you have asked about specific "working" strategies employed by our traders. The following is offered in the Spirit of sharing, and is not in any way to be construed as an ad for Bright Trading. If anyone, yes anyone, thinks differently then I am glad to take down the post. I can only refer to what our traders are doing since that is all I am priveleged to. Here goes....

Our traders have been doing very well with pair trading using various risk parameters and methods. From simple "daytrading" the various pairs, to risk expansion via overnight positions. This entails some individual money management (which we strongly encourage) and a full understanding of historical movements and standard deviations based on volatility and the stock's individual beta's. Since we have several of our top people completing the "beta testing" of a couple of different versions of automation, we should have a good working model for new (experienced) traders to utilize.

The "opening" plays are still extremely viable, and we will be allowing automation to more people as soon as we dedicate some servers.

Tape reading still plays an important part even though we have changed the visual monitor view somewhat. Following short sellers and "envelope" orders are doing well.

Anyway....just some basics to think about (did not mean to sound "technical" in any way, and figure you guys are already trading so this all should sound basic to you). I cannot really go into too much detail here, not fair to our traders, but look for some cool stuff for the new year.
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Does everyone at Bright share strategies? or is it every person for himself? Do you have any low transactional directional traders at Bright? or is purely high volume scalping and hedging, arbitrage?
 
Thank you Don for your post. And thank you for coming back to partcipate on this forum. All information on strategies is valuable, and now, hopefully, this message thread can be used as a basis for strategy discussion vis-a-vis your firm's styles, rather than being used to slam yours or other firms.

Best wishes,
Candle
 
We have traders using many different strategies and utilizing the whole spectrum of share size and order volume. Some simply trade the openings, some only trade momentum. We do share in our weekly meetings and our continuing education the various strategies. What I find heartening is that when given new ideas, traders improve upon them with their own thoughts, and it keeps a continuous circle of improvement going. Funny note: I have had people come to me with "new, fresh ideas" that were actually started in my own office/school, gone out to the various offices, and found their way back to the source as new. I guess the old saying is true: Everything is new to someone!
 
Opening automation is being made available to all "graduates" from our advanced training, who have at least $25,000 in their accounts. In 2002 we will include a version in our new software rollout.
 
uhhh yeah I guess its great that Don wanted to share some "Bright" strategies, but I'm still waiting...maybe I missed something but he basically said that they trade pairs, opens, and some other stuff...how is that a help to anybody?
Hey guess what, I trade breakouts. Does that help? Didn't think so.
I'm just saying, either share strategies or don't.
I'm not trying to make trouble, I'm just trying to figure out why it would be "unfair" to Bright traders if Don actually shared some meat. How am I suppose to know if I want to go to Bright if I don't even know if it's worth it?
Since everybody already argued the heck about the best software/data feeds...why don't people state what else they can offer? Since I live in the New York area and want to open a pro acct soon, I want to be in the best environment...is it gonna be Echo? Bright? Gene's place? Obviously I'd want to be around successful traders who have good strategies...and since I would have my $ locked up for a year , I want to make sure I go to the right place BEFORE I sign..so I'm certainly not going to just sign a contract to a guy who starts of a thread with "For serious traders..." sounds like an insurance saleman's pitch. But if that person said, "hey look, our traders are doing this and this and making x dollars doing this, and we share ideas once in a while yadda yadda." I'd be more comfortable joining.
That's all for now. Peace.:cool:
 
Originally posted by uptik2000
uhhh yeah I guess its great that Don wanted to share some "Bright" strategies, but I'm still waiting...maybe I missed something but he basically said that they trade pairs, opens, and some other stuff...how is that a help to anybody?
Hey guess what, I trade breakouts. Does that help? Didn't think so.
I'm just saying, either share strategies or don't.
I'm not trying to make trouble, I'm just trying to figure out why it would be "unfair" to Bright traders if Don actually shared some meat. How am I suppose to know if I want to go to Bright if I don't even know if it's worth it?
Since everybody already argued the heck about the best software/data feeds...why don't people state what else they can offer? Since I live in the New York area and want to open a pro acct soon, I want to be in the best environment...is it gonna be Echo? Bright? Gene's place? Obviously I'd want to be around successful traders who have good strategies...and since I would have my $ locked up for a year , I want to make sure I go to the right place BEFORE I sign..so I'm certainly not going to just sign a contract to a guy who starts of a thread with "For serious traders..." sounds like an insurance saleman's pitch. But if that person said, "hey look, our traders are doing this and this and making x dollars doing this, and we share ideas once in a while yadda yadda." I'd be more comfortable joining.
That's all for now. Peace.:cool:
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Don's just giving you a taste. you gotta sign on the dotted line for the "special sauce" receipe.

Oddly enough many traders share their strategies with the world and it does not diminish their returns. But obviously these are "special" strategies:)


Curiously I wonder what he wanted to discuss on here with regards to strategies if he didn't intend to share any?
 
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