The model shows that the profits are best if I buy right before the close and sell after the open. I don't want to get my emotions involved and would rather stick to it. Having said that, I know that you do have experience in similar situation and I agree that there may be temptation to wait and see if things get better if the open isn't where I hoped it'd be. I appreciate the advice. That's why I'm seriously thinking of automating it... Do you have any pointers for the best real-time simulator to use? As for this weeks profits - the lawyers are still setting up the LLC, only when it's taken care of and the $ is wired I can answer that one
That's why I'd rather take that variable out of the equation and have everything automated As for the competition, you are right. But what gives me hope is that what I've found appears to be a tiny niche that might have escaped their attention Or so I hope.
I seriously hope that you are aware that this "strategy" is one of the oldest and most abused ideas ever....?? It hasn't worked for any period of time to my knowledge in the last 25 years, although it has always popped up as a "new" technique. I strongly suggest that you do not automate it...since the "off hours" are the most crucial to opening prices of stocks and you are left "out in the cold" overnight.... Before you get into it (I am equally sure that no one will talk you out of it), I want you to back test using critical variables (FV at close vs. open, Market "trend" - sector rotation, etc.)....if you still want to automate it, I will be surprised.....and I haven't even mentioned news items that come right after the closing bell..... There are a lot of good ideas out there, and I would like to see everyone find the good ones...I just hate to see someone "re-invent" the square wheel. ***Now to be fair*** If you have already included "non disclosed" variables in your formula, and don't want to share them, I understand... in any case....good luck!!
Thanks Naturally, all the selection criteria are "nondisclosed", and they are based on information flow, liquidity pressure etc. I'd rather not go into details It hinges on sound theory and all the relationship I have found are so monotonic in the critical variables and so stable over time, I can't wait to see how it performs in reality. I appreciate the advice, hopefully this is not an old hat. Sincerely, V. PS Actually, when some factors are included, the information flow becomes redundant and well proxied for, which seems good b/c that one might be hard to automate. PPS One more question though. How good is afterhours trading (liquidity-wise) in large cap/large daily volume stocks??? Thanks.
Why go through all that hassle, if your system can do what you say it can, I'm sure Don Bright or someone else can get you in touch with some deep pockets who'll pay you 7 figures for what you got.
<i>How good is afterhours trading (liquidity-wise) in large cap/large daily volume stocks??? </i> In general, imo, it sucks. The exchange, the stock, and the particular events of the day are all intervening variables. The farther you get outside of market hours, the worse the liquidity. You are not going to really know anything until you try it for real. Get an IB account, start trading 100 share lots, and let us know how it goes. Good luck.
I worked for a company that managed lots of money for other people. I went on my own for a while. Then, I ran into my old boss. I told him that I was trading some very interesting, highly proprietary stuff that I had discovered. He was interested in having me come and work with them again. It seem to all go well, until I found that they wanted me to sign something that said that anything I discovered there was the property of them. I said, what about the stuff I "discovered" before I got here. He said that, if they traded it, they would own that too, _AND_IF_I_LEFT_I_COULDN'T_TRADE_IT_MYSELF!! After listening to their logic, I actually agreed to with them! I think that vlad is doing the correct thing - he doesn't have to disclose what he is doing, and it if turns out to have an edge, he will do well and get his seven (eight or nine ?) figures, just has to "work" a little harder for it. nitro
nitro I'm trading someone's system and he has had 7 figures offered for his system. I just get the trades and put them on @ my discretion. Everything is negoitable.