The Opening Orders Thread

Quote from dr_sean:

Hi guys, I've been following this thread for a week or two now and have done some reading and find the strategy very cool! I'm an options guy myself, but nonetheless have taken note of your trades...good stuff!

Has got me into paper trading some Opening Orders on the options side; more difficult, obviously, but I'm playing it small and not so systemized...

Basically put in orders usually the day before / before open, set the orders to place @ 9:24est and cancel if not filled by 9:44est. Have been trying to get fat fills on some index products--OEX, VIX, but trying to get mostly short on UP opens rather than avoid a crash down....keep I/V on my side more that way too.

Have not gotten a whole lot of fills, but the strategy has been fun!

Thanks to all you guys for your daily rants... :D
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Hi, welcome to the thread! This doesn't tend to work too well with indexes, just NYSE stocks. Indexes are just too broad, and you have to be "right" about the opening direction reversal...while with stocks, the Specialist will be on your same side most of the time, and he still has access to more order flow than we do...just ride with him.

Don
 
lescor,

Just wondering how often you add or subtract stocks from that list of 50 or so....

Thx




Quote from lescor:

http://www.elitetrader.com/vb/showthread.php?threadid=83474

I posted the basics of the strategy in this thread.

As I've said before, trading opening orders is just trading. It gets you in with a small edge, but it is purely trading skill that will determine if you make a profit.

I think it's market volatility more than the number of opg players that determines how tight things are at the open. There are definitely a lot of people involved with this strategy, but a lot of them are inexperienced or under capitalized. A lot of people try it, few stick with it.

Think about it. You're trading the most volatile time of the day, have no idea what stocks, sectors or how many positions you'll have, or how much capital exposure you'll have. When things are bad, they can be real bad, real quick. It's just not for everyone.

I wanted to correct the above poster though who intimated that I make money on this strategy by losing for long periods and then making it all on one big day. Just not true. I've definitely had some outlier big days, but I can count on one hand the number of times I've had more than two consecutive losing weeks in the past 5+ years. YTD is $85,000 for me trading what I call 'traditional' opening orders. That's manually trading a handful of positions, flat in about 15 minutes. I trade a list of 50 stocks with sizes ranging from 2,000 to 15,000 shares.
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3 fills / 12000 shares

2 long / 1 short / +872.00

- 1.27 / + .23% vs last nights close

about as good as it was going to get...

happy monday...:p
 
May I call on someone to provide todays Futures price at 645ish PST, I think I screwed up and made $2047 on 8500 shares!

I calculated using:

FV 13.82
Cash 1484.25
Futures 1480.30
 
You're using the wrong futures contract. December became front month last week, you are using September. I assume you don't have a big list of stocks, cause you woulda been short an awful lot of them.

Sometimes it's better to be lucky than smart. I would try to avoid making a habit of it though.
 
Quote from anvil993:

May I call on someone to provide todays Futures price at 645ish PST, I think I screwed up and made $2047 on 8500 shares!

I calculated using:

FV 13.82
Cash 1484.25
Futures 1480.30
More...

645 pst is what cst + 2 or 3 hours
 
Quote from lescor:

You're using the wrong futures contract. December became front month last week, you are using September. I assume you don't have a big list of stocks, cause you woulda been short an awful lot of them.

Sometimes it's better to be lucky than smart. I would try to avoid making a habit of it though.
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never mind...

by the way...i agree...
 
Quote from chiguy:

645 pst is what cst + 2 or 3 hours
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6:45 PST might be a little late for the opening, since the market opens at 6:30Pacific, LOL.

2 hours for Chicago, 3 hours for New York.

Don :)
 
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