Using VWAP
- Thread starter eusdaiki
- Start date
generally speaking, a common saying is that - if you can't beat the VWAP, you probably don't have much futures as (at least as an institutional ) trader
iow, say that you want to accumulate ABC
over the course of the next 2 weeks
if you can beat the VWAP over the next two weeks with your entries - you need to work on your chops.
VWAP is also a nice way of insuring you get a 'decent" entry price. merely by entering a VWAP order prior to market opening, you can be guaranteed to get the VWAP price by the end of a day.
that's pretty kewl. it's kind of like a dollar cost average thing. instead of thinking you are smarter than the average trader, a VWAP order ensures you get the average entry.
iow, say that you want to accumulate ABC
over the course of the next 2 weeks
if you can beat the VWAP over the next two weeks with your entries - you need to work on your chops.
VWAP is also a nice way of insuring you get a 'decent" entry price. merely by entering a VWAP order prior to market opening, you can be guaranteed to get the VWAP price by the end of a day.
that's pretty kewl. it's kind of like a dollar cost average thing. instead of thinking you are smarter than the average trader, a VWAP order ensures you get the average entry.
I just started using the DDE / RTD feed from DTN and it has VWAP for every stock in real time...
now i need to check with some place that has an accurate vWap so i can compare...
anyway... check with DTN or eSig (if they have a vWap field)...
Inside the spreadsheet pulling the DDE / RTD data, I am going to add up all the Last Prices's in the sp500 and also the vWAP prices and chart the totals of both against each other in Sierra Charts to see where the SPX is in relation to its own vWap
HtHelps...
cj...
HAVE STOP <img src=http://www.enflow.com/p.gif> WILL TRADE
Am i missing something? Here's a free list:
http://www.trade-ideas.com/SingleAlertType/CAVC/Crossed_above_VWAP.html