Futures market opening bracket trades

Discussion in 'Strategy Development' started by 5Pillars, May 28, 2006.

  1. I was going to see how many here do market open bracket trades and then call it a day. I use a market open bracket trade set-up and then I rarely take any trades the rest of the day.

    April was a tough month with some trades taking up to two hours to complete, so I am glad we now have volatility back.

    These trade set-ups have been working very good lately with the increase in volatility, as I am able to end the trades within 15 to 30 minutes some days going for around 1/2% return or better on my account size. The s&p emini is my primary trade set-up but it is working with other markets also.
  2. How do you set your bracket size? Is it the same size on both sides of the opening price?

    Are you looking to go long above the upper bracket, or short under the lower bracket (breakout trades)?

    What's your method for exit - a fixed number of points for a profit target or stop loss, or something based on an indicator?

    Just trying to get a clearer picture of how you're using brackets.


  3. Can some one post a link(s) easy to understand type... lol on what brackets are and how to use them (set up)?

    Or if your feeling type happy have at it....


    trading_time :D
  4. I have a set package of stop limit entries and pre-set covers both above and below the exact bid/ask from the opening ticks of price at the cash open.

    Whatever price does at the open I have price movement only that will stop me into my pre-set package of positions, as I use no charts or indicators for this trading.

    I have determined an amount of spacing for my pre-set order packages from the opening bid/ask prices, for the long and short side entries/covers that is working very good. Sometimes I have orders entered from both accounts, long and short, when the open is choppy but I have developed a way to make the trades still work to be profitable.

    I was trying to see if anyone else does any trading like this in the futures markets.
  5. SandyGray I do have my entries with covers pre-set when they are entered right at the market open, and usually by about 2.5 to 3 points from the opening price I am done and out of my trade for the day with 1/2% or more of my account size returned.

  6. My style of bracket is a set group of stop-limit entry orders with coordinated covers that are pre-set at the open, and this is for long positions in one account and short positions in a second account.

    If price chops in a small range for a bit at the open and then trends up I will have stop-limit long entries triggering with associated covers as price continues to rise. After about 2.5 to 3.0 points of price movement from the open, I will have covered my final positions and the trade will be complete.

    about 30 to 40 percent of the trades I have positions entered from both accounts. I have designed a method that handles these opening trade situations while still returning my 1/2% of account size goal per trade.

    I think the reason my system is working for me so well is the scale and stack of entries and their associated covers. When the market trends right away out of the open I am done some days in about 10 to 15 minutes and that is a great feeling.

    I use a modification of my opening pre-set orders stack for news releases at the various times in the morning.....8:30, 10:00, etc.
  7. In and out of my trade today by 09:44 est - first set of entries were at 1277.25 and my final cover was at 1275.75.

    With the added volatility I have been able to get my 1/2% of my account size fairly quick lately - even though I make more money when the trade at the open chops for a bit prior to a trend, I'll take the quick and out any day for my goal of 1/2% or more.
  8. Would you mind sharing any further details of how you chose 1277.25 as your first short entry?

    It sounds like you are rolling into your position as well (adding more shorts as it goes your way?).


  9. Yes I do stop-limit pyramiding into the position with calculated covers that gain 1/2% of my account size once the final scale out covers are filled.

    I have found a good range for entries and then exits from lots of backtesting - today I had only positions from the short account activate so today was a quick and out trade.
  10. Are your opening range triggers based upon movement from the opening price at 9:30?

    Do you take into account the size of the gap from the previous day's close?

    #10     May 30, 2006