i started out using 100 shares on about 20 issues... i then decided to work with the oex as an index... the thought being that if a stock skewed huge the arbs would help bring it back in line... i trade 86 stocks out of 100...no nasdaq and a couple of stinkers that were just evil... i now trade between 1500 and 2000 shares of each on my way to more size... i was at 100 shares for along time then jumped to 1000 for all and now i am using history to be my guide... i block zealously and would rather miss an opportunity than get jammed... live to play another day... hope this helps...
chi, Thank you for the info. Yes it helps. I may start to add more issues trying to get more fills or fills on more issues that give me a chance for a "slingshot". Would you say you have been net profitable this year using the OO? How does it compare to 2005? Thanks
Openings have been much worse this year than the previous four I've traded them. I've cut my list in half to about 70 stocks the last few months, and upped the size a bit. My average share size is about 5500, but varies between 1500 and 15,000 per stock. YTD net is about $15,000. With the size I'm trading and number of stocks, I would expect about $7,000 per month on average based on the last few years results. My best week of the year was the first one, +8300. So I've basically been making peanuts since then. I'm pretty tight on pulling stocks with news, but still have been getting hit with more than the usual number of big losers it seems. The p/l swings on the downside have been bigger than in the past. What's particularly discouraging is that openings usually do very well during periods of increasing volatility like the last couple weeks, but my results are not any better. At this point I'll keep plugging along because I don't have anything to replace this strategy that needs constant attention for the first 20 minutes of the day. It still has a positive expectancy, although nothing like in the past. Hopefully it's just a phase.
"YTD net is about $15,000. With the size I'm trading and number of stocks, I would expect about $7,000 per month on average based on the last few years results. My best week of the year was the first one, +8300. So I've basically been making peanuts since then. " It looks like you're up about 6700 when taking out the first week. On a relative basis, it appears we are having approximately the same results, ie: net profit for the year is about equal to the expectations of 1 month of profitability. It's an easy first 20 minute trade, but I'm going to need to weigh the first 20 minutes of productivity using this strategy vs missed opportunities on another strategy. Thank you for your response.
i did not breakout 0/0 in 2005... i have increased my size in 2006... i will double check my numbers and post later...
Didn't participate today (had to tour a kindergarten for my son next fall). Regarding OPGs this year, I'm up 4K (which would be 6K if it weren't for two trades I tried to over-finesse), which is actually a better pace than last year. But last year I kept too many stocks in my roster that had turned into duds, and messed around a lot with my exit strategy/envelope to find something I was comfortable with. So my results aren't a good gauge of OPG's effectiveness year over year, but 2006 certainly hasn't been anything to crow about. Right now I use 11 stocks, from 500 to 2000 shares each. 500 share positions are for stocks I'm testing, and once I'm convinced they can be profitable given my style I'll go to 1000 and then 2000 depending on their volatility and behavior after the open. None of my stocks right now have shown they (I) can handle more than 2000 shares, so that's where I've left them for now. I've never found the OPG strategy to be "easy" (it can be maddening), but while recently it hasn't made much, it still more than pays for business expenses while other strategies pick up the slack.
there's more volatility but it's useless if there no volumes. if u go in the direction of the gap sure is tough..maybe is just summer doldrums, hopefully. unfortunately it is true; those thick candles are less and lesser.
I'm +18K YTD after commish, including all mistakes (I've had a couple doozies). Won't be buying that jet anytime soon, but it's probably still worth my while. It's definitely tougher this year. I think it's due to all those bootcampers piling 1000 share OPG orders on all the usual suspects and then trying to slingshot for their nickel that's screwing it all up. Does anybody make money on KO anymore? Just kidding Don! It is a nice way to kick start the morning and part of the routine so it stays in the bag of tricks for now. FYI, I trade 62 stocks with various sizes from 300 to 5K. My fill rates have been so low this year I'll probably look to add a few more at the end of the summer. I'll probably be backing off a bit this summer once (if) the volatility dies down.
2 long: wmt and mcd net -$180 down about $400 for the week This might be my last month with the oo, I may start back up in Sept.
7 fills / 13000 shares 4 long / 3 short / +522.00 - .45 / + 1.05%...blocked 14 of 86 doubled up on short lehman position when i saw the blowoff print coming...would have covered for a loss a few months ago... it's amazing what you learn after getting beat up enough times... sometimes you can actually see what is in front of you... covered quick...brokers puked after i covered...still can't complain though... have a great weekend all...