Stessful? Expensive?? Heck, we're usually all done in 15 minutes....but, you're right, it does require watching the market closely....Trading styles are composed of various "techniques"...and we try to teach our people to utilize several types each day. Don
Don, this thread was not intended to promote or hype yourself or Bright Trading. The intent was to discuss alternate trading strategies. Please try and remain on topic.
For what its worth, I have been trading this strategy for six weeks. 68% of my fills are winners(average 4.5 fills and 3.1 winners) and the strategy is daily gross positive 81% of the time. Is this because the market environment the past few weeks have been advantageous to this strategy? Will this system flatten out in the "long" run? maybe... only time will tell.
stop winners ?? wonder what van tharp and the other market wizards would think of this concept ?? surfer
just fyi, try looking at your average profit on your winners vs. your average loss on your losers and then think about what your maximum possible loss on any one day is. After you have figured that out look at all the commissions you are paying. Then think about the time and intensity of focus required for this strategy vs. other strategies and the opportunity cost involved. If after all that you still want to do it, then good luck.
Stop winners, also called "slingshots" are used by many of us who came from the exchange trading floors (including RTharp, I'm sure...maybe not his Dad, however, lol). This simply means that you place a closing trade in at a winning price, right after the opening, to take advantage of any quick movement in the stock by the Specialist. We, of course, move the price away if the market continues in our direction (to maximize profits). Don
if we get enough people to do it, it will make OO's even MORE profitable for the rest of us. I have been doing OO's for several years now and keeping METICULOUS records on about 140 stocks. Without accounting for news, slingshots, etc., and merely (and brainlessly) exiting all trades at 9:40 est, you would be net profitable. By taking out news stocks your profits increase significantly. Why are there so many OO "haters"?