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I am trying to understand some new TradeStation Signals I've got which
utilize the NextOpen DLL. This .DLL as you probably know allows you
access tomorrows open. What I'm seeing are buy and sell signals produced
by the Signal each of which is plus or minus Tomorrow's Open as
obtained by the DLL plus or minus a computed Factor..
I'm not grasping what the intentions are here in terms of trading. In
backtesting, each bar is looking into the future to obtain a price (plus
some additional math) on a buy or sell order which is assummed to be
filled.
This seems to imply that for a position trader (never mind daytraders)
to trade this type of Signal--never mind the backtesting--that to
duplicate the backtesting methodology, you are in fact waiting for the
market to open to get the opening price, applying the Factor, and wait
in hope that your order will be filled. Now am I getting this right?
My confusion is the result of trading for years by buying/selling at the
market, with also stop limit orders on market open, but most often
regardless of price But I don't understand how it is reasonable for
TradeStation to assume trades have been placed based upon an unknown
opening price--tomorrows open..
Can anyone straighten me out on the intentions of the Tomorrows Open
DLL??
J. Davis
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