what price is used to start out with, in calculating OOO's? do you use an official NYSE close? as you know stocks can move up or down in the after hours, and the last trade can be different I'll be in class Monday, at Bright thanks Mark
I've done this over the past couple months and have now have 51 stocks on my list. I've tossed about 10 that were treating me bad and added more to replace them. I take out about 5 or 6 each day because of news (more during earnings season), use a 1% envelope every day and average 4 fills per day. Weeding out the bad apples and learning how the stocks you get filled on regularly trade off the open does help with your consistency. Corey
I don't know how you would backtest it because you couldn't account for news story stocks that you take out only that day.
Simulating (backtesting) OO orders is a nightmare at best in any software, let alone TS. For one, you may be in a trade for a dime to a quarter - your "error tolerance" is therefore very small. The exit of the OO is obviously so much more critical than the entry. These "facts," plus the fact that reading the tape is so essential, plus other nuances, makes it very difficult to "backtest" the strategy. But let's assume that you could overcome those things. Well, since the exit strategy is everything, you would need access to the bid and the ask. If you notice, at least in TS6, you do not have access to the bid/ask from EL, so you are hosed again. There are other software out there that you can use. Good luck trying to turn this "art" into a formula. nitro
I made a trade on the open friday where I hit the Instinet bid on a stock a split second after the stock made its opening print on the NYSE the bid was only for 100 shares it was 10 -15 cents higher than the specialist opening print I covered it a few minutes later turns out my trade was the high of the day I assume it is a good trade any thoughts anyone?
04-21-02 03:20 PM is this legit ? I made a trade on the open friday where I hit the Instinet bid on a stock a split second after the stock made its opening print on the NYSE the bid was only for 100 shares it was 10 -15 cents higher than the specialist opening print I covered it a few minutes later turns out my trade was the high of the day I assume it is a good trade any thoughts anyone? it was a gift from above.
You'll find out all about it in class...but for the rest of you, we use the NYSE 4PM closing price (unless we get pre-opening indications, then we may modify). Don
If it clears properly, then congratulations....there are a few (very few) "berries" out there at times. Don
Looking forward to seeing you this week at class, just drove into Vegas from Santa Cruz, I've heard recently from another student of yours that currently one of the <few> profitable trades right now is your "opening" trade, is this true or are your more "mature" traders doing well with envelope trading and other techniques we might learn about this week? Just wondering, if this is not on topic feel free to pm me directly John Armstrong aka mrktwiz Good trading all......;-)