Posted by lessarda on 12th of Jul 2011 at 07:13 pm
and, though I think there are good reasons to book profits on
highly leveraged positions (options or futures) while still within
the signal, I would always open and close positions in line with
the signal.
Posted by burkmere on 12th of Jul 2011 at 06:45 pm
Well, I guess if the very bottom of the day was at market open
and you used that as your marker, you'd be ok. How would you know
where that was in advance?
Also, I would think maybe 80% of the time or more it wouldn't be
the low of the day so you'd get stopped out anyway. Why not just
watch it and set, say, a half percent below the opening low
and sell it if it reaches that point.
I guess the deal is, you have to draw the line somewhere and the
spy system has taken all the "difficulty" out of trying to second
guess where to sell. It sells at the open. Of course, we will have
to see how it does now "live" after a period of time to see what
the long term performance is. At least it's outperforming buy and
hold so far. I know we are all hoping for much more than that
in the long run.
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SPY sell
Posted by algyros on 12th of Jul 2011 at 05:54 pm
Is there any reason why it wouldn't be a good idea to set a stop loss at market open instead of selling outright after a sell signal has been issued?
This would only be for a a day (in other words, instead of selling tomorrow, a tight stop is placed as well as a Sell MOC).
I don't see a downside to this strategy, but it is not hard to imagine that I'm missing something.
To my mind, the signal is the signal...
Posted by lessarda on 12th of Jul 2011 at 07:13 pm
and, though I think there are good reasons to book profits on highly leveraged positions (options or futures) while still within the signal, I would always open and close positions in line with the signal.
Well...
Posted by burkmere on 12th of Jul 2011 at 06:45 pm
Well, I guess if the very bottom of the day was at market open and you used that as your marker, you'd be ok. How would you know where that was in advance?
Also, I would think maybe 80% of the time or more it wouldn't be the low of the day so you'd get stopped out anyway. Why not just watch it and set, say, a half percent below the opening low and sell it if it reaches that point.
I guess the deal is, you have to draw the line somewhere and the spy system has taken all the "difficulty" out of trying to second guess where to sell. It sells at the open. Of course, we will have to see how it does now "live" after a period of time to see what the long term performance is. At least it's outperforming buy and hold so far. I know we are all hoping for much more than that in the long run.