The Opening Orders Thread

Quote from Arnie:

Has anyone experimented with "No" envelope? In other words, you enter buys .01 below prev close and shorts .01 above prev close.
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We actually had an elderly lady, family friend, who was struggling with pricing, so my brother told her to go in a penny under and a penny over on AOL (TWX), and she made some pretty good money, LOL.

"Lescor" - I undestand your point, it's just that I don't like buying something a little above previous close, when the rest of the market gaps way up. But, there is no argement to your success!!

Don
 
Quote from lescor:

I never skew my envelopes. My buy and sell levels are the same irregardless of how much the market is gapping. To me skewing your envelopes is akin to making a bet on what's going to happen after the open. I try to remove as much guesswork as I can and be ambivalent as to direction.
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Lescor -

I know you keep great stats; have you ever checked to see if there was any discernable performance difference in "up" buys or "down" sells (on those stocks that allow it)?
 
Don you say

"Just a comment. When the market is opening up 4 or 5 S&P points, it's a good idea to have a wider buy envelope, and a more narrow sell envelope.

I used .65 buy, and .3 sell, for example.

Just my personal method. "


why?

in any event would be more logical that the sell envelope was wider and buy more narrow envelope

thank you
bye
 
Quote from Sheik:

Don you say

"Just a comment. When the market is opening up 4 or 5 S&P points, it's a good idea to have a wider buy envelope, and a more narrow sell envelope.

I used .65 buy, and .3 sell, for example.

Just my personal method. "


why?

in any event would be more logical that the sell envelope was wider and buy more narrow envelope

thank you
bye
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A couple of things. First, since I have already adjusted the selling price to reflect a much higher opening (FV estimated opening price already up), I don't want a wider sell envelope because it would put the SS price so far away it has little chance of being filled. The FV calculation has already moved the price up.

Secondly, I widen the buy side to keep it below the previous day's closing price. I don't like to buy anything barely above yesterday's closing price when the rest of the market is opening up a lot. If it can't open up a lot, with the market, I don't want to be stuck long the stupid thing, LOL.

Don
 
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