HERE is how to make money consistently trading the open

Discussion in 'Strategy Development' started by Quantfisher, Mar 28, 2017.

  1. That's correct surf, ye, mate, sir. He didn't invent THE STATISTIC (or a bunch of aliases).
     
    #31     Mar 28, 2017
  2. Ok, just confirming its the same guy---

    Just wondering why you prefer him as a mentor over a verified and consistent retail trader who progressed to be a billion dollar fund manager?


    surf
     
    #32     Mar 28, 2017
  3. traider

    traider

    Open is volatile sure, but the bid ask spread of many stocks reflect this. How do you overcome this if you are not a HFT?
     
    #33     Mar 28, 2017
  4. comagnum

    comagnum

    So easy a caveman or cavelady could do it. The bar for calling ones self a quant just hit a new low.
     
    #34     Mar 28, 2017
  5. Apart from your initial trade, which has to be a breakout trade near the open, your goal is to buy below the open and sell above the open. If price moves more than 1-2 standard deviations past your open trade stop level, you no longer want to fade it. However, the opportunity exists within this zone.
     
    #35     Mar 28, 2017
    MACD likes this.
  6. ET has a lot of standard deviants
     
    #36     Mar 28, 2017
  7. There is some validity to the basis of the argument put forth. In an efficient market scenario where there are no events of any type during the day, the price reached during the first 30 minutes can be indicative of the price for the remaining of the day.

    The first 30 minutes is usually spent trying to balance all the orders, depending on the volume. Once this is done, a good 'price' for the day can be determined.

    However, should there be *any* event during the day: Data, Systemic, Political, Corporate or even Insitutional, the price will then fluctuoate afterwards.

    So, in theory, in a vacuum, it could be accurate. Perhaps it would be useful mechanism 100 years (or maybe even 70 years?) ago, when there was little additional information made available during the day. But nowadays with the constant influx of information the price can change dramatically.

    It is possible to occasionally see what is being suggested nowadays, but that is more an indicator of a slow news day. If one can forsee days where there will be no events of any sort than one can more accurately determine the price. But then, that is almost the definition of an efficient market.
     
    #37     Mar 28, 2017
    nakachalet likes this.
  8. JackRab

    JackRab

    ? What's the point of placing the stop loss at all if it's highly unlikely to hit? So I place my stoploss sell at -50%, which is very low-risk! :cool: Very helpful that stoploss...
     
    #38     Mar 28, 2017
    nakachalet and eusdaiki like this.
  9. Buy1Sell2

    Buy1Sell2

    Wind-Up Thread.
     
    #39     Mar 28, 2017
  10. JackRab

    JackRab

    Statistically speaking, this thread has a very likely probability to hit the stoploss at the higher average daily range of nonsense.
     
    #40     Mar 28, 2017
    fordewind and Mtrader like this.