I'm starting this thread because I inadvertently started a discussion on this in Hitman's journal. I would like to continue the discussion, though. Is anyone using it with something like Don Bright's open only trades? Anything automated or are you doing manual entry for all the orders?
I've been waiting and putting in limit orders the minute a stock opens. Kind of limits how much you can do. Do you put in long and short OO's with IB for each name? Do you manually cancel the leg that isn't filled or can you OCO them?
JPB, I'm an IB user and very interested in this topic. However, I'm not very clear what the trading strategy and related mechanics are here. Can you direct me to some source of information about what these orders are and how we use them? Alternatively, since you are the godfather of this thread, could you post this information? Thanks.
You don't have to wait for the stock to open if you send the orders direct to NYSE. I know you can send them at least as early as 09:25 - I haven't tried much earlier. Can someone comment on when the NYSE-mandated cutoff is supposed to be in order to get a piece of the opening print with a market order? I thought it was either 09:15 or 09:25, but I can't seem to find the info anywhere. Or maybe I was dreaming that there is such a rule.
AAA, I am slightly confused by your question, so I will just answer it as I understand it. When you say you put in limit orders the minute the stock opens, I assume that you were doing this before OO orders were implemented in TWS. Also, if you are doing this to try the MOO strategy as presented by Don, why put them in _after_ the stock opens? Why not put them in before the stock opens? In response to puting in long and short OO orders with TWS, I do put in two orders for every stock that I trade OO orders, one buy, one sell. Today, I don't have to worry about canceling them as I use the "Time In Force" set to OPG and orders that are not filled on the open are instantenously cancelled by the system. In the past, I had to cancel them by hand, and this limited the number of orders I felt comfortable putting in. nitro
I tried this out yesterday. The instructions on how to do it is in the online user's guide on IBs site - pretty simple. I entered the order, I think around 9:15, can't remember exactly. Once the stock opened (at 10.04 - my order was to sell limit 10.30), the order automatically cancelled. I imagine you enter two separate orders to buy sell at the appropriate "envelope" prices. I have been using the IB API to automate entering orders during the day, not sure if you can specify this order type using the API though.
Yannis- most of the information is in this thread by Don Bright:http://www.elitetrader.com/vb/showthread.php?s=&threadid=3334 It's a long thread, but the info is in there somewhere! I'm just looking into this this strategy since IB started allowing MOO and LOO orders.
Robert, I think you misparsed what I was getting at. I meant that if he was using _LIMIT_ orders, not MOO, he should put them in before the open. A lot of people were confused by this, that you could put in a limit order before the market opens. They acted just like MOO's, _EXCEPT_ they don't automatically cancel when not filled. This is all academic now with IB's TWS - they now implement honest to goodness MOO. nitro