What Was The Most Simple Edge That Worked For You?

IPOs are always underpriced, well, not always, but if the underwriters know what the hell they're doing you'll get a great deal if you get a slice pre-issue. Sell it at the market for a quick profit, 5 to 10 percent on a thousand shares...
 
Quote from robertstone:

Why would one divulge a legitimate edge and have it arbed like the Money Supply Trade?

--RS
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the likelihood of many people tradin' the same stock at the same time is so thin that the implication are negligable considering how many companies report during the same day. further on, many things and set ups are obvious to me but might not be for somebody else. also there's slightly more to it, it takes time to refine the approach.
also even though I divulged this info, that by the way I think is really nothin' special, there will be zero impact because stocks have behaved like that since earnings report were born and will continue to do so until there are institutions willin' to buy them on every single qt....a retail trader ain't gonna make a dent into news stocks intraday movements.
 
"What Was The Most Simple Edge That Worked For You?

What edge worked for you that was really simple?"

Was and Worked, I believe, are the key words.

:D
 
Quote from Bitstream:

the likelihood of many people tradin' the same stock at the same time is so thin that the implication are negligable considering how many companies report during the same day. further on, many things and set ups are obvious to me but might not be for somebody else. also there's slightly more to it, it takes time to refine the approach.
also even though I divulged this info, that by the way I think is really nothin' special, there will be zero impact because stocks have behaved like that since earnings report were born and will continue to do so until there are institutions willin' to buy them on every single qt....a retail trader ain't gonna make a dent into news stocks intraday movements.
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All it takes is for one aggressive hedge fund to pick up on your idea and completely wipe it out. True trading edges are scarce in this market and they generally do not support much liquidity. I have personally stumbled upon some profitable strategies and absorbed all the size they had. As for the people who used to be making money doing the same trades... too bad.
 
Quote from PCanyon:

What edge worked for you that was really simple?

Back when the S&P was a burly $500 per pt there was a simple market fade that worked week after week.
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If I recall, I worked this from around 1986 to 1988 and then like many edges, it deteriorated.
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PCanyon, were you trading the SP pre-NYSE open on Black Monday in 1987? I believe it opened in Chicago down 7% off Friday's close ... then, the eye of the storm hit ...

Were you there?

To stay relevant with the forum, a market edge that has somewhat deteriorated was to play the ZN or ZB "impulse ring" on the monthly payrolls numbers by waiting for the announcement and then taking action proportional to the market reaction.

1) Announcement:
2) at 15 seconds enter scalp with market (only if tight bid/ask)
3) cover scalp at about 5 minute mark
4) drink a cup of coffee and watch the market recover - try to relax
5) at 12-15 minute mark re-enter long/short fading the current move (last 5-7 minutes)
6) let bake for rest of day, cover position for weekend terrorist event risk before leaving for weekend

(this recipe still works on events like today's FOMC announcement)

http://www.elitetrader.com/vb/attachment.php?s=&postid=958786
(ex. payrolls number 2004 time frame)
 
A good one for today!! The Fed raised, but that was a forgone conclusion, the key was the language within the text. SOOO, there was a little lag time between announcement and the market reaction. If you can read fast, and I mean speed read and digest quickly, you may have been able to beat most traders to the punch. I was sitting in front of the Bloomy today, I think there was a lag of about ten seconds between announcement and move, which doesn't happen if all the market is concerned about is "the number"
 
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