Don's Openings Pt. 2

Discussion in 'Journals' started by Don Bright, Mar 5, 2002.

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  1. nitro

    nitro

    No wonder! Be careful with those .5 above below on big up/down days!

    Then again, the bigger the balls, the bigger the gain :)

    How'd you feel on managing 7! fills?

    nitro
     
    #191     Apr 1, 2002
  2. Just a comment: 1% is 1% below and 1% above in my book.
     
    #192     Apr 1, 2002
  3. nitro

    nitro

    Yeah, I know - mine too.

    mk has got BIG BALLS.

    nitro
     
    #193     Apr 1, 2002
  4. Filled on all longs today and the spooze just kept going down. I was not real psyched with 7 longs and futures tanking. Anyway, 7 fills, all longs, net 38 cents on losers, net 55 cents on winners = +17 cents. 7 positions is way too many for me to watch, I think I need to expand my envelope.
     
    #194     Apr 1, 2002
  5. Only two fills today (How did everyone get so many fills? Check your envelopes, I used .9).

    Two small winners......about 8 cents...
     
    #195     Apr 1, 2002
  6. chs245

    chs245

    Why not trade the opening mechanically ?

    Instead of watching the MM activity, just put in a 'limit' cover order at, say halfway the difference of the opening print and the theoretical fair value ? This allows you to handle more orders. If by a certain time you haven't been filled, close the trades at current market prices (at the latest 9.45am). Works reasonable well for me.

    Oliver
     
    #196     Apr 1, 2002
  7. I'm using .75 above and below, i'll try .9
     
    #197     Apr 1, 2002
  8. It has been tried many (too many) times, with no success. The "getting in" is easy, the "getting out" takes some training and a lot of practice. And what "MM activity" are you referring to? There is no "opening" on the Nasdaq, only on listed stocks with the Specialist system...which makes it necessary to understand how the whole game is played...and "mechanical systems" have just plain not worked.

    One more thing...there is no "theoretical fair value" after the stock has opened...this calculation is only used for the initial "opening only" orders.
     
    #198     Apr 1, 2002
  9. chs245

    chs245

    I base my concept on action and reaction. If at the open the stock should have opened at a certain fair value as indicated by the futures, and it opens outside the envelope, then I assume that there will be a reaction which pulls the stock back towards the calculated FV.
    Thereby I assume of course that the opening print was an aberration or mispricing. Of course that isn't always the case as sometimes (or most of the times?) there is a reason why the stock opens outside the envelope, but the key point is that you trade WITH the specialist and in most cases he will bring back the price a bit towards the theoretical indicated FV so that he can cover his position at a profit.

    Oliver
     
    #199     Apr 1, 2002
  10. Holding 2 for a bit...(I'm "thinking" again, this could be a problem)....
     
    #200     Apr 2, 2002
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