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 [email protected], "intermilan04" <[EMAIL PROTECTED]> 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 [email protected], "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 [email protected], "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: [email protected] [mailto:[EMAIL PROTECTED] > > On Behalf > > > Of intermilan04 > > > Sent: Tuesday, 15 August 2006 4:31 PM > > > To: [email protected] > > > 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 > > > > > > Please note that this group is for discussion between users only. To get support from AmiBroker please send an e-mail directly to SUPPORT {at} amibroker.com For other support material please check also: http://www.amibroker.com/support.html Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/amibroker/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
