Opening Orders - 2009

Small today, heading in for some surgery.... anyway, 2 fills + 14 cents.

The discussion about the viability of this strategy has taken pretty much the same course since I started it here about 7 years ago. Still, to this date, one of the most profitable techniques we employ. Automation has become king in this game. Simply doing homework, and pushing a button (while monitoring properly of course).... working well.

My trading groups all lead by example, and wouldn't be doing it if it wasn't working. And, yes, as I've mentioned many times, we tend to go in streaks.... but long term success and consistency is our goal.

All the best,


Don

BTW, any of you Northern California traders...please join us for one or both of our free/dinner drinks workshops. You'll see first hand our best opening programs. Next week, Sep 15 and 17.

http://www.stocktrading.com/events2009SF.html

 

+1

 

Hey guys,

Just interested in how you go about the entries with this strategy.

Would you submit limit-on-open (or similar type) orders for every stock in your book before the market opens?

If this is the case, would you need need funds to cover all these positions even though you would only typically get 5-10 fills at most per day?

Interested to hear your thoughts.

Nizar.

 

Yes, you send limit on open on all stocks that you want to play. Tens to hundreds of stocks, depends on how you play.
You only need the margin on what get's filled and it's in real time. So you get fill for 100k in two stocks, close them, get fill for 75k on one another and close it. In that case you need 100k/4 = 25k in cash. But there is also a limit to the number of orders your broker will allow you to place. From what I know, it depends on the broker. Maybe some chicken ass brokers wont let you place the millions of $ in orders on your 50k cash.

 

Cheers total_keops, thats what I needed to know.

Does anyone know what IB's policy is with regards to number of orders allowed?

Would 100 be too many?

 

I've done up to 120 orders on IB (60 stocks). Don't know what (if any) limit they have.

 

Awesome, thanks for that.
Should be more than enough for what I want to do.

 

I have to ask.... are you sure that you guys at IB (which my family has an account), can place a $million worth of orders with only about $25K in their account? The potential fills (only half of course) would be waaaay over PDT rules..... I called my "guy" and he said no way....

I just don't want any mis info out there.... my "guy" could be mis understanding my question...

Don

 

Is the way the opening auction works different between the NYSE and the Nasdaq ?

Thanks.

 

Yes, there is no actual "opening" at the Nasdaq...they simply take an opening snapshot at the bell. NYSE stocks may open at 9:30 or 9:35 etc., based on order flow etc.

Don