Enveloping orders

Discussion in 'Order Execution' started by riskreward, Sep 4, 2003.

  1. It really depends on your stock selection, but if I trade all day, I usually get 10 or more fills, some of the guys who do more stocks may get 50 or so. I prefer to cancel the rest of the orders after getting filled on 2 or 3, so I can better "tape read" out of the trades.

    Don
     
    #41     Sep 6, 2003
  2. Don, if you get filled, shouldn't your exit be near instantaneous? I know my understanding is flawed but I thought that basically you guys "caught" those sudden prints and the trick was to avoid getting stuck in a trending stock. What else goes into your exit?
     
    #42     Sep 6, 2003
  3. Actually, when you're "in" a trade, then we treat it like any other...by reading the tape, evaluating the stock, the group, the RS, etc. Sometimes we put a closing order in immediately (if, as you said, the stock looks like it may be trending), or wait a minute if it seems to be rebounding (with all other market conditions being judeged as favorable).

    Don
     
    #43     Sep 8, 2003
  4. Toonces

    Toonces

    A couple general questions on enveloping

    1) Would you just start out with one stock? Would that get boring waiting for a fill, or could someone new to this strategy start off with 2 or 3 at a time?

    2) I realize that each stock is different, but as a general rule of thumb, how far above/below do you place orders? A certain %?

    3) Do you ever have to worry about shorting regulations? I would assume that a sudden up move would occur on an uptick, but I wonder if there are exceptions?
     
    #44     Sep 19, 2003
  5. i think i bought those .87's from you.....
    i remember that day, i was fortunate enough to be long whe it hit and wa able to buy more before the pop.... WMT gapped 1/2 point in two trades
     
    #45     Sep 19, 2003
  6. Is this the same as "spraying" a sector?
     
    #46     Sep 19, 2003