Anyone do this?

[boofis]

After watching and participating in various international markets now for an infantile amount of time, I can't help but wonder who the mad bastards are who trade through news and on open etc. and whether people have dedicated systems/ideas for these times?
I stand back and watch and am slightly amazed, slightly perplexed, by the occasional size that goes through.

 

[sinner]

After watching and participating in various international markets now for an infantile amount of time, I can't help but wonder who the mad bastards are who trade through news and on open etc. and whether people have dedicated systems/ideas for these times?
I stand back and watch and am slightly amazed, slightly perplexed, by the occasional size that goes through.

Yerp I know of one trader who trades news, one of his intraday strategies is vol breakouts around major economic news releases. Different contracts respond differently to news but most have "their" pattern which quants try to capitalise on. He works for a large U.S firm and I doubt he is the only one running that sort of idea. Obviously not his only strategy but it does diversify against other strategies which turn off or size down for the news.

I also think TH trades the news :nunchux:

Opens, I like opens. Free skew!

 

[Trembling Hand]

After watching and participating in various international markets now for an infantile amount of time, I can't help but wonder who the mad bastards are who trade through news and on open etc. and whether people have dedicated systems/ideas for these times?
I stand back and watch and am slightly amazed, slightly perplexed, by the occasional size that goes through.

You have a trade idea trade it, simple. No big deal.

 

[boofis]

Alright, here's my trade idea: coming into open, place a buy stop loss order 2 ticks above average price for the lead up and a sell stop 2 ticks below average price for the lead up and hope that either one gets triggered if there's a quick run either way on the open. Doomed for failure, we shall see!

 

[kid hustlr]

Hi Boofis,

I'm not sure I understand the terminology, could you explain the idea a little more?

Do you mean if the average price coming into the open was $10 you would set a buy stop at $10.02 and a sell stop at $9.98?

When would you look to exit?

(Still getting my head around all the different types of orders)

 

[boofis]

Hi Boofis,

I'm not sure I understand the terminology, could you explain the idea a little more?

Do you mean if the average price coming into the open was $10 you would set a buy stop at $10.02 and a sell stop at $9.98?

When would you look to exit?

(Still getting my head around all the different types of orders)

Hustlr,

Don't take this to be anything other than a mere idea that popped into my head otherwise bankruptcy would follow lol.

It was just in regards to futures specifically and the quick runs that can be seen on open at times.
If the price was jumping between 33.25 and 33.75 then set a buy stop order at 34.25 and a sell stop at 32.75 so that if the price rallies up quickly you might be lucky enough to get filled then cover as soon as the momentum stops either way.

But having said that, definitely disclaimer that it's most likely a stupid idea that would not work in the real world.

 

[kid hustlr]

No no I get that, I was just testing myself as to whether I understood the types of orders.

tks

 

[Trembling Hand]

But having said that, definitely disclaimer that it's most likely a stupid idea that would not work in the real world.

+1

Thats not really what I meant about you have an idea. Thats just a punt. I'm talking about a setup that you are already positioned for well before the news hits.

 

[boofis]

No no I get that, I was just testing myself as to whether I understood the types of orders.

tks

If ever in doubt:
http://www.pricegroup.com/futuresOrderTypes.asp