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Thanks to everyone who posted, especially those who gave testimony
to their real life experiences.
You can't beat practice coupled with good theory.
Every short term trader who holds overnight is in effect 'buying the
open' the next day, which I agree is like having a blindfold on.
If we are actually entering or exiting on the open it seems we can
get it but we just don't know where it is going.
That would be a nice crystal ball to have wouldn't it!
As my ave 'time in trade' at the moment is 2 days, it is very
significant to me.
As I am automatically in the market from the previous day I only
have two things to worry about at the open, gapdowns below my stop
and gapups above my profit target.
For each trade I use, I do know what to expect as the typical % of
trades that will gapdown through my stop and also the relative
outcomes if I handle gapdowns in different ways.
I also know what the average outcome will be if I sell profitable
gapups immeditely or ride them for a while before exiting.
For different types of trades and different markets I believe there
are other significant opening events I can measure to see if they
provide any useable metrics.
(Some day, one day).
Psssst was right.
It is only money.
We don't forfeit our lives, only our trading capital.
I can always get a real job.
BrianB2.
ps.com, "intermilan04" <intermilan04@xxx> wrote:
>
> 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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