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Lights
Registered: Sep 2003
Posts: 1147 |
02-09-12 04:25 AM
when VIX was 60-90 back in 2008, i had a strategy to simply scan market imbalances at 3:40. if the market was up big for the day, i would just buy the largest buy imbalances and short the largest sell imbalances on a big red day in market. it was really a once in lifetime type of market where stuff up 5% for the day would close up another 2-5% in the last ten minutes and vice versa. this happened nearly everyday for 3 months
Quote from cyoungmark:
I think this could be really useful in helping new traders cut their learning curve. It's late, so sorry if this doesn't make sense.
What are some old, unprofitable, or unusable edges that the market has made ineffective? It would be great if you could share stories.
I'm thinking maybe if old edges are put out there, new traders could try and create a new edge around that. Get ideas flowing and get on the right track.
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ronin266
Registered: Jul 2006
Posts: 241 |
02-09-12 04:32 AM
Quote from Lights:
when VIX was 60-90 back in 2008, i had a strategy to simply scan market imbalances at 3:40. if the market was up big for the day, i would just buy the largest buy imbalances and short the largest sell imbalances on a big red day in market. it was really a once in lifetime type of market where stuff up 5% for the day would close up another 2-5% in the last ten minutes and vice versa. this happened nearly everyday for 3 months
That was the golden age  . You could end up 30-40k in that 10 minutes. Some ppl say that in triple and quadruple witching you still can win something using that strategy, but the risks ar far bigger, and the MOC fills are only a couple of cents. Nothing close to the 2008 times...
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stock777
Registered: Jul 2001
Posts: 15405 |
02-09-12 05:48 AM
Quote from oraclewizard77:
In Forex, a group of traders used a faster bank forex chart feed to get a 2 - 3 pip look ahead at the real price. Then they used the bucket shop FXCM to place their orders. Eventually, FXCM figured out what they were doing and froze their accounts.
Doing the opposite trade of anything that anyone posts here on ET. This worked for awhile until some good traders actually started to post so you did not have as many newbies posting dumb ass trades.
We still have some very reliable old timers here posting 99% losers. And they say et is old hat.
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ronin266
Registered: Jul 2006
Posts: 241 |
02-09-12 12:02 PM
Btw, I do not think that "shadowing the ax" is totally dead. Maybe the specialist participation rate in the markets is lower (like 30-40% if i remember it correctly), but he still works in the NYSE, they΄re the same old guys that before, and they still get big blocks to trade. You still see useful doubleprints, spread up/downs, etc from time to time that help you with the trades.
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