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Hi Dave,
I think buying 5-30 minutes after the market open is a wise way to
avoid the opening volatility. As you mentioned, the big moves right
after open and you physically have to be in front of the PC is the
bottleneck. I might add that I have to have intraday quotes as
opposed to EOD data.
I used to sort of trade like that in the past, when I was using Margin
power to buy stocks...I was unloading stocks at the open, and buying
new ones at the open. Of course, since I had to sell before buying,
it served as a way to avoid the open orders at the market open.
Nowadays I've shifted toward not using margin and try to automate the
process as much as possible.
Regards,
intermilan04
--- In amibroker@xxxxxxxxxxxxxxx, "cohndw" <minimax9999@xxx> wrote:
>
> One thing to consider versus Buying At Open is to buy about 5-30
> minutes after opening. This of course requires you to be present at
> this time or use automation if you still have a day job. Depending
> on the stock, some settle down within the first few minutes and have
> much better true liquidity in terms of getting prices closer to the
> market average.
>
> When I have tested using AmiBroker I have moved away from Buy at Open
> to buying no earlier than 9:35 am. This gives the market 5 minutes
> to settle and go thru its morning gyrations. Of course, you can miss
> some big moves with this approach. To find out the potential size
> of the profit gain or loss, backtest at both open (9:30 am) and a few
> minutes later. If you don't see much difference in the backtest
> results then there is definitely a strong gain to be made by moving
> away from a Buy at Open.
>
> Dave
>
> --- In amibroker@xxxxxxxxxxxxxxx, "intermilan04" <intermilan04@>
> wrote:
> >
> > Hi,
> >
> > I have that statement placed in my system. I download quotes at
> > night, scan for signals and make trades next morning.
> >
> > What's been bothering me is, my system which has worked marvelously
> > the past 10-20 years is just not working nearly as good this year.
> >
> > My strategy is buying on a dip, i.e. pick up stocks that got shot
> down
> > recently. However, I've noticed that nowadays, stocks that got shot
> > down fall even further because
> >
> > 1. More shorts jump on, and shorts don't cover fast
> > 2. Longs dump shares, some willingly some unwillingly due to margin
> calls.
> >
> > Stock prices usually bounce back after a while, but I don't know, I
> > guess my timing of entry has been off lately because of this new
> trend
> > I just described. Hope it will change soon.
> >
> > intermilan04
> >
> > --- In amibroker@xxxxxxxxxxxxxxx, "jacklweinberg" <weinberg@> wrote:
> > >
> > > You might want to ensure a delay (i.e. rade at tomorrow's open)
> with
> > > the following statement:
> > > SetTradeDelays( 1, 1, 1, 1 );
> > >
> > >
> > > --- In amibroker@xxxxxxxxxxxxxxx, "Paul Ho" <paultsho@> wrote:
> > > >
> > > > Are you sure you haven't "look into the future" with one of
> your
> > > statements
> > > > e.g. buy on open with the price of low being known
> > > >
> > > > _____
> > > >
> > > > From: amibroker@xxxxxxxxxxxxxxx
> [mailto:amibroker@xxxxxxxxxxxxxxx]
> > > On Behalf
> > > > Of intermilan04
> > > > Sent: Tuesday, 15 August 2006 4:31 PM
> > > > To: amibroker@xxxxxxxxxxxxxxx
> > > > Subject: [amibroker] Buying at open -- In Real Life
> > > >
> > > >
> > > >
> > > > Hi all,
> > > >
> > > > I'm just curious if anyone here are buying and selling
> securities at
> > > > the open with market orders, i.e. orders are placed BEFORE
> MARKET
> > > OPEN
> > > > and they get executed as soon as the market opens.
> > > >
> > > > I have noticed that buying at the open might help you get cheap
> > > > shares, but the reverse is also true...you might sell your
> shares at
> > > > really bad bids.
> > > >
> > > > The reason why I'm bringing it up is, my system on Amibroker is
> > > > designed to trade at the open. And strangely enough, my system
> isn't
> > > > doing too well ever since I started using it...perhaps it's
> because
> > > > I'm getting bad bids and asks by placing market orders
> overnight?
> > > >
> > > > I'm not quite sure how the first trade occurs, in theory I sell
> to
> > > the
> > > > highest bidder but with low liquidity of pre-market trading,
> what if
> > > > the highest bid is absurdly low?
> > > >
> > > > Any thoughts on this is greatly appreciated.
> > > >
> > > > Regards,
> > > >
> > > > intermilan04
> > > >
> > >
> >
>
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