Trading the open

Quote from Breakout:


  • When the market trades above your opening range
    bar, go long and put your stop 1 tick below the opening
    bar.
  • For example, if the range is 1014.00--1013.00, you would
    go long at 1014.25 and have your stop at 1013.75.
  • Don't reverse, just get out for a 2 tick loss.
  • Like I said, you may have to give it 2 or 3 tries, but usually if
    I don't get it after the 3rd try, I forget about it.
  • I'll post a couple of charts. One from yesterday and today on the ES.
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Do you set profit targets? If so, how?
Thanks.
sulong
 
Quote from sulong:



Do you set profit targets? If so, how?
Thanks.
sulong
More...

If you get it the first or second time, try to get 8 to 10 ticks out of it.

If you get it the 3rd time, try to get 12 ticks.
 
Quote from Breakout:



If you get it the first or second time, try to get 8 to 10 ticks out of it.

If you get it the 3rd time, try to get 12 ticks.
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Cool, worked out great this morning, NQ 1 minit chart +13 ticks.
What type of orders do you use for entry-exit? stop,stoplimit,market?
sulong
 
Quote from Breakout:

I guess my way is a little different, because I was taught by a
floor trader that the "opening range" took place within the first
90 seconds to 2 minutes of the session.

So, I use 133T bars which is pretty close to the 2 minute bar.

Anyway, this is how I like to do it. Sometimes you get it the first
time, but don't be surprised if it takes 2 or 3 tries.

You can use any time frame you want, but this is basically the plan. (Just reverse for short trades)

  • When the market trades above your opening range
    bar, go long and put your stop 1 tick below the opening
    bar.
  • For example, if the range is 1014.00--1013.00, you would
    go long at 1014.25 and have your stop at 1013.75.
  • Don't reverse, just get out for a 2 tick loss.
  • Like I said, you may have to give it 2 or 3 tries, but usually if
    I don't get it after the 3rd try, I forget about it.
  • I'll post a couple of charts. One from yesterday and today on the ES.
More...

Sounds good. I'll give it a go. How many points to you usually aim for before taking profits?
 
Quote from trade_addict:

Does anyone have methods to trade the open or do people generally wait for the 1st 15 mins. to see what happens?

ET
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This is just one of a basket of strategies I use and it is very successful. My approach depends upon the characteristics of the issue - unlike some other people that state that a single approach works for all markets, I have found that the play is quite a bit different depending upon the issue being considered and its characteristics. Don Bright is pretty good at this type of trading and would be your best bet to get detailed information - since they are also provide training. Search for his posts on this ....
 
Quote from sulong:



Cool, worked out great this morning, NQ 1 minit chart +13 ticks.
What type of orders do you use for entry-exit? stop,stoplimit,market?
sulong
More...

See, there's nothin to it...:D


Back in the old days, I used limit orders so I wouldn't get screwed by my broker. But, with todays two second electronic fills, I use market orders.

Sometimes I pay a tick more, sometimes a tick less. It balances out.
 
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