Opening Orders - 2008

Yet another "textbook" opening. 5 fills, 4 winners (one small loser, DD)....+36 cents. WYE was extra good this morning.

Don

 

I have questions:

1. Please report % gains/losses, and not absolute dollars gains/losses. Absolutes are meaningless (other than to impress or seek compassion).

2. Does the open in your execution differ from the published open? Could one catch the open by a non-blind order (at 9:30ish).

3. Did anyone test this for EFTs? Does the strategy apply to EFTs (QQQQ, IWM for instance).

Thanks

 

1. Percentages are meaningless here. You need high leverage to do this strategy and is usually only done at prop firms. When trading prop only absolute dollar gains/losses count. Unless you want to think prop guys who put down 5K and make 250K a year are making 5000% returns. Hmm.. what about the guys who have no capital contribution. Infinite returns?

Or were you talking about % of price? "Hi guys, today I made 0.333 percent on GE in the first 15 seconds"

2. Didn't bother to read about the strategy did you.

3. Ditto.

 

1. (Example) I place 2000 - 4000 shares buy and sell short orders on about 30-40 stocks each morning (prices based on Fair Value calculations etc.). I generally get filled on 3-8 stocks each day. We average about 75/25 winners vs. losers, number of cents varies, but we tend to be pretty consistent).

I have my people keep track of pennies not dollars. If you make 12 cents on 200 shares or 2000 shares, it's just a matter of overall profit. We look for consistency in the retracement of gap openings.

2. We use Primary market open on NYSE, not consolidated tape...that would defeat the whole purpose of riding the coat tails of the Specialist, who we try to mirror. If he sells short, so do we, etc.

3. Doesn't really work for index ETFs since they are less likely to open higher than the general market (or lower) since they "are" the market.

Don

 

This won't qualify for the strategy mentioned here in posts, but sometimes I do take a position in QQQQ 5-10 minutes before market open when it appears that the market is about to open with a gap and shall start retracing within first 5 minutes.

 

I never tried but would it work for ARCA stocks? Is there an auction on them at all? I'm thinking GLD, FXI...

 

sorry tk, could'nt get your question. I use both ARCA and INET (for hidden) to trade premarket.

 

I should have quoted this:

So, Is there an auction on ARCA stocks? GLD, FXI...

 

ahh ok, haven't trade on amex. only nasdaq and nyse stocks.

 

4 fills only, 3 winners, one small loss. (75%, LOL).
[
+14 cents today.


(For the new guy, LOL).

NYSE has a "pure" one price opening, so "Opening ONly Orders" must be placed with NYSE as destination. You can place your retracement orders wherever you like (like ARCA to get rebates).


Don