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Mailbag: Bot Trading Manages Risk at the Open

David Aferiat (June 12th, 2009) Writes:
The Open and its frenzied activity can reward as well as punish traders. The difference between these two groups comes down to experience certainly, but also the insight and quick decisions that new tools (especially automation) can bring to bear.divbr /From the Mailbag (Support Forum) came a href="http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38598662"a question/a about such topics that I want to answer here. First the question then our response:divdiv/divblockquotedivbMean Reversion and poor fills: /b/divdivbr //divdivI'm using a mean reversion strategy that looks for stocks with spreads 9c. I have been automatically placing limit orders at bid+1c at the open, and have been getting killed by adverse selection. /divdivbr //divdivIf the stock moves up, I only get 1/10 of my order, and if the stock moves down, I get the entire order. I did learn that I'm making my time the order is in force too long (2 min) - losers move down in ...

Mailbag: Bot Trading Manages Risk at the Open

David Aferiat (June 12th, 2009) Writes:
The Open and its frenzied activity can reward as well as punish traders. The difference between these two groups comes down to experience certainly, but also the insight and quick decisions that new tools (especially automation) can bring to bear.divbr /From the Mailbag (Support Forum) came a href="http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38598662"a question/a about such topics that I want to answer here. First the question then our response:divdiv/divblockquotedivbMean Reversion and poor fills: /b/divdivbr //divdivI'm using a mean reversion strategy that looks for stocks with spreads 9c. I have been automatically placing limit orders at bid+1c at the open, and have been getting killed by adverse selection. /divdivbr //divdivIf the stock moves up, I only get 1/10 of my order, and if the stock moves down, I get the entire order. I did learn that I'm making my time the order is in force too long (2 min) - losers move down in ...

Coming Back? Returning Traders Guide to Trade-Ideas

David Aferiat (January 19th, 2009) Writes:
a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_wlx0GQEcH6Q/SXUm2hNSxZI/AAAAAAAAALI/JoaF0H9jseI/s1600-h/47967_l.jpg"img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 233px; height: 320px;" src="http://4.bp.blogspot.com/_wlx0GQEcH6Q/SXUm2hNSxZI/AAAAAAAAALI/JoaF0H9jseI/s320/47967_l.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5293179655112803730" //ablockquote"Yeah we tease him alot cuz we got him on the spot, welcome back.  Welcome back, welcome back, welcome back."/blockquotespan class="Apple-style-span" style="font-style: italic;" Welcome Back Kotter Theme Song/spanbr /br /Often Trade-Ideas and our subscribers resemble the local neighborhood bar. The locals there everyday collecting their mail. The casual drifters. The frequent regulars. Many start as one type of customer and switch to another. We keep the taps clean and the information flowing - whoever we are serving.br /br /Are you a customer coming back to Trade-Ideas after some time off? Could have been with another set of tools; getting more education; raising more capital - we won't ask any questions. Instead here's a guide to help you so you don't skip a beat. It comes straight from a IM session:br /br /br ...

Who Needs Bad News with Good News Like This

David Aferiat (December 10th, 2008) Writes:
a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_wlx0GQEcH6Q/ST9JpB-aikI/AAAAAAAAAKY/yAoTkNw4tDY/s1600-h/125055_l.jpg"img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 238px; height: 320px;" src="http://4.bp.blogspot.com/_wlx0GQEcH6Q/ST9JpB-aikI/AAAAAAAAAKY/yAoTkNw4tDY/s320/125055_l.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5278018257555196482" //abr /Our Director of Trader Education, Jamie Hodge, guest blogs today with something from the, "Ever-Optimist" file:divbr //divdivI couldn't resist compiling the headlines (in proper order) from Google Business today:br /br /They are as follows as of 2:42pm PST./divdivbr //divdivbr //divdivbr //divdivbr //divdivbr //divdivbr //divdivolliEA Reduces forcast on holiday salesbr //liliSony will cut 8000 jobs as recession( hey, i guess we're in a recession now, Sony says so) curbs demandbr //liliAlleged that Fannie and Freddie ignored dangerous Alt-A loansbr //liliT-Bills at negative ratesbr //liliCubs sale could be helped by bankruptcy decisionbr //liliPending home sales slip, store sales fallbr //liliKroger prft slips 6% after expense risebr //liliUnited sells planes to raise cashbr //liliFedEx and Con-Way warn - UPS gets downgrade by JPMbr //liliSprint may close ...

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