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Trading the RTH Open


The RTH Open (9:30 EST) is an interesting point of entry. To make money we need 4 things 1. Time 2. Price 3. Volume 4. Direction. One benefit of trading the open is that the trader has a forced entry as the time, price and volume portion of entry is taken care of. Secondly you can chose to trade once only and keep yourself stress free for the rest of the day. So all we have to look for is a profitable direction. Now the question is whether to buy or sell the 9:30 Open. Various options are 1) Trade in the direction of previous day RTH close (4:15 EST)(Gap fill theory). 2) Trade towards the previous days RTH Open (Volume is the biggest magnet). Trade reverse of the 9:29 EST candle i.e. if it is a Red Candle Buy and if Green Sell or reverse i.e. SELL for Red and Buy for Green. I look forward to your inputs
Originally posted by BruceM

seems like anyone who is following along with this should do a thorough analysis of the losers too.....perhaps there is a common denominator to the losers i.e. maybe the five minute bar that precedes the open gives a clue....


Exactly, BruceM.
Originally posted by stocksster

Originally posted by ak1

today we go long


Pretty long wait today for an exit, ha, ak1.

My friend "stockster" if you have followed along actively you would have noticed that every time the market has broken the stop loss point it has reverted back to the open. Also in all call gone sore the market did respond to atleast 1 point profit right at the open. Some food for your thought..........(money managment)

My friend "stockster" if you have followed along actively you would have noticed that every time the market has broken the stop loss point it has reverted back to the open. Also in all call gone sore the market did respond to atleast 1 point profit right at the open. Some food for your thought..........(money managment)


True, ak1. Please don't misunderstand me, as I wasn't deriding your strategy. I was just stating that it was taking a while to exit from yesterday's position, as the market activity was slow and the trading range was small.

As a matter of fact, I've been keeping a tab of this strategy off and on, ever since you posted it and looking at other time intervals - like 3 min, 5 min, 15 min - too (on the same lines as something that BruceM had mentioned a couple of posts earlier).
My "window" mentor told me that if you trade during Xmas and New years with the "window" then you will give back all your presents....more later!!
Tuesday and wednesday both had losses if yu were following this.....I'm not gonna track this but if you are a system trader I've been told you need to take all the signals
This system is based on a coin flip. I see no edge with this system.
I agree rainman. That's why I was hoping that AK1 could provide more on this. We know just by looking at the data that the plus and/or minus 4 is hit probably 100% the last 2-3 years but actually trading for it is a different story. Perhaps AK1 is just presenting the concept and doesn't want to give away the specifics of his particular trades. That's cool too!

I still prefer the fades and this actually had been the best holiday season to do it. My mentor would be smacking me in my virtual head but experience has to count for someting.

Hope all have a great New Year!

Bruce
Taking this concept further as we have observed the the data feed for the last minute bar before RHT open can vary leading to one trader going short while another going long. To create uniformity this is what I suggest. The overnight market closes at 8:30 est and then the smaller US markets open. So take note of the close at 8:29:59.(Close of the 8:00 est 30 min candle) i.e. where the overnight traders stop trading.
Compared to this next morning where does the overnight market close at the same time. If this close is higher the trend is up and longs are preferred. If close is lower the market is week and shorts are preferred.
Step # 2: Fine tune the entry: Several ways to do, #1, Pit bull concept 2.5/4/5.5/8 +/-pts from the open. But as we are looking for the first 4 pt move some times the move comes before the 2.5 area is hit.#2, another way is to apply fibs. but the trick to using the fib. ret. is to look for a double bottom or double bottom like/double top or double top like formation in the 30 min. chart that coinsides with a fib. line and then go long or short at that point/line.
Using the fib. technique this is todays result.

08:46:37 BUY_LIMIT 1080.00
09:36:19 SELL_LIMIT 1084.00
thank you stockster.