The Opening Orders Thread

Back to the drawing board!

I guess it would therefore make more sense to take a smaller list of names, keeping all orders in round lots within my buy power.

I seem to do better when I tier orders based on various percentages. Due to b/p constraints I sometimes have to use one or at best two tiers; when I use the widest tier I get smoked like GM today, it almost hunts the strongest stock and gets me on the opposite side of the move. Yet tighter envelopes get me into more names that tend to reverse quickly, a combination of both seem to work the best.
 
I'm one of those that doesn't skew envelopes, irregardless of how big the market is gapping in the morning. I figure it's essentially an arb trade. Too low I buy it, too high I sell it. I don't know nor care what the specialist is doing in the stock, or why it's up or down a certain amount. It's all about odds to me.

Good longs today that opened above yesterday's close:
AYI CBT CYT EQ LEG SOV

I have a lot of trade stats on this, but so far have been too lazy to look at them, so I can't say which method is 'best'. Not adjusting things just seems to make more sense to me.


Quote from Don Bright:

I'll give my two cents on this. When the market is opening way up, the estimated Fair Value price is already up quite a bit from the previous day's closing price, so we only add a small envelope so as to not be too far away and not get filled.

We try to be sure that our (today) buy order is below the previous day's close (or leave off buys altogether as I did today).

Don
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Quote from lescor:

I'm one of those that doesn't skew envelopes, irregardless of how big the market is gapping in the morning. I figure it's essentially an arb trade. Too low I buy it, too high I sell it. I don't know nor care what the specialist is doing in the stock, or why it's up or down a certain amount. It's all about odds to me.

Good longs today that opened above yesterday's close:
AYI CBT CYT EQ LEG SOV

I have a lot of trade stats on this, but so far have been too lazy to look at them, so I can't say which method is 'best'. Not adjusting things just seems to make more sense to me.
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I don't skew either.
 
Quote from lescor:

I'm one of those that doesn't skew envelopes, irregardless of how big the market is gapping in the morning. I figure it's essentially an arb trade. Too low I buy it, too high I sell it. I don't know nor care what the specialist is doing in the stock, or why it's up or down a certain amount. It's all about odds to me.

i would not call what i do a skew...i just recenter to the current spu price...i am still +.75% to sell and -.75% to buy
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"Not skewing" is how we've been doing if for a long time, and we seem to have found (again, like most of us, no real hard data) that it kind of makes sense to be sure the bid or offer is below or above the previous close.

My thinking is simply that if the market opens way up, and you buy a stock just slightly higher than it's previous closing price, that you have bought a weaker stock...and since we play for the immediate reversal, that it might have a better chance for dropping.

Primary is making money, the strategy is pretty flexible and forgiving for the most part.

Have a good Friday opening!

Don
 
Quote from Don Bright:

"Not skewing" is how we've been doing if for a long time, and we seem to have found (again, like most of us, no real hard data) that it kind of makes sense to be sure the bid or offer is below or above the previous close.

My thinking is simply that if the market opens way up, and you buy a stock just slightly higher than it's previous closing price, that you have bought a weaker stock...and since we play for the immediate reversal, that it might have a better chance for dropping.

Primary is making money, the strategy is pretty flexible and forgiving for the most part.

Have a good Friday opening!

Don
More...

Isn't a stock that opens DOWN on an big up open even weaker than one that opens a slightly higher than it's previous close? By your thinking shouldn't you eliminate your buy orders completely?
 
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