Early Morning Range Breakouts using time and sales

[robocop]

Wow look at SGEN - Seattle Genetics!

 

[robocop]

GRPN Short 900 @ 12.09
Stop @ 12.34

Covered half @ 11.63
stop to entry

 

[robocop]

Covered half @ 11.63
stop to entry

GRPN Exit @ 11.71

 

[robocop]

VELT Long 1500 @ 6.31
Stop @ 6.19

Exit @ 7.11

 

[robocop]

LRCX Short 1200 @ 37.68
Stop @ 37.91

 

[robocop]

LRCX Short 1200 @ 37.68
Stop @ 37.91

Covered half @ 37.51

 

[robocop]

LRCX Short 1200 @ 37.68
Stop @ 37.91

Covered other half @ 37.51

 

[robocop]

Daysummary





















All trades were early range breakouts. The morning trades didn't go that well, only GRPN (Groupon) and VELT (Velti PLC) saved my day.

In the afternoon LRCX gave me some profit, but was not an easy trade.

I find it kind of hard work for a total net profit of $ 260 for the day.

Do I need to be much better to start live trading, or is this as close as it gets?

Should I try to start with real cash next week, or should I stay in practice mode longer?
Any advice would be appreciated.

I've checked at IG Markets if all paper traded stocks can be shorted:

BMC shortable
CREE not-shortable
ROST not-shortable
INTU shortable
NTES shortable
DLTR shortable
VELT shortable
GRPN not-shortable
LRCX not-shortable

Hmm. In practice only BMC was shortable with IG Markets.

Cheers,
Robocop

 

[WinAtTrading]

All trades were early range breakouts. The morning trades didn't go that well, only GRPN (Groupon) and VELT (Velti PLC) saved my day.

In the afternoon LRCX gave me some profit, but was not an easy trade.

I find it kind of hard work for a total net profit of $ 260 for the day.

Do I need to be much better to start live trading, or is this as close as it gets?

Should I try to start with real cash next week, or should I stay in practice mode longer?
Any advice would be appreciated.

I've checked at IG Markets if all paper traded stocks can be
Hmm. In practice only BMC was shortable with IG Markets.

Cheers,
Robocop[/QUOTE]

Hey Robocop

I didn't trade mon and Tuesday last week. But did trade Wednesday, thurs and Friday. These where the most difficult days for a number of weeks. The weeks trading left me feeling confused and doubting the opening range strategy. Which just goes to show how important it is to keep regular trading diary to keep things in perspective. Last weeks trading was difficult as the news and uncertainty in Europe is having a major influence on how the markets are trading. It seems like the mornings have changed to high volatility and the Afternoons are when the general trends get established.

Therefore at the moment this strategy is more profitable in the afternoon trading between 2 pm to 4 pm.

I would love to find out a set of rules or strategy to get a hold of under what external circumstances the opening range breakout strategy is the most effective. So under ideal circumstances I would then increase trading activity. In the same light if we where more aware of which circumstances or external market situations led to the least profitable results, we could then modify the strategy accordingly.

Have you got any thoughts on the changes in the market cycles and how they affect this strategy?

Somesh

 

[robocop]

Hey Robocop

I didn't trade mon and Tuesday last week. But did trade Wednesday, thurs and Friday. These where the most difficult days for a number of weeks. The weeks trading left me feeling confused and doubting the opening range strategy. Which just goes to show how important it is to keep regular trading diary to keep things in perspective. Last weeks trading was difficult as the news and uncertainty in Europe is having a major influence on how the markets are trading. It seems like the mornings have changed to high volatility and the Afternoons are when the general trends get established.

Therefore at the moment this strategy is more profitable in the afternoon trading between 2 pm to 4 pm.

I would love to find out a set of rules or strategy to get a hold of under what external circumstances the opening range breakout strategy is the most effective. So under ideal circumstances I would then increase trading activity. In the same light if we where more aware of which circumstances or external market situations led to the least profitable results, we could then modify the strategy accordingly.

Have you got any thoughts on the changes in the market cycles and how they affect this strategy?

Somesh

Past week we had 'Hemelvaartsdag' (Feast of the Ascension). Many traders/investors take some days off and add some extra free days. Maybe this affects markets in there way of trading.

I took a few hours these days to 'test the waters' trading the morning range in the morning. I find it quite difficult to spot good patterns and trade accordingly. A benefit of trading in the morning is that you can a let a profitable trade run into a bigger profit until the end of the session.

I papertrade the US markets almost a year now and tried several strategies / methods.

My experience is that Monday and Thursday (especially the day before expiration day) is the best day to trade breakouts. Expiration day is a worse day to trade breakouts. Keep in mind that Expiration day mostly is a 0% day. Indices go up and down, but at the end of that day they haven't changed a lot. I think Monday is a good day, because all the events of the weekend must be traded in (thus many gaps that can be filled).

Friday in the afternoon is the worst time to trade breakouts (especially to the upside). I think this is due profit taking. Professional traders know when a stock should breakout to the upside and take profits directly if it does, and leave less breadcrumbs for us.

The earnings period al usally a good time to trade breakouts.

I also experienced that some stocks are traded till every life is squeezed out of them (like many banking stocks). Other stocks like Pharma / Bio-tech do produce great breakouts very often. I think there are two reasons for this. First, they are not traded till death, and (more importantly) they are event driven. I.e. a drug is approved, or some new product is released, or taken out of the market.

Cheers,
Robin

 

[robocop]

CTRP Short 1000 @ 18.78
Stop @ 19.01

 

[robocop]

CTRP Short 1000 @ 18.78
Stop @ 19.01

Stopped out @ 19.03

 

[robocop]

BBBY Long 400 @ 68.94
Stop @ 68.50

 

[robocop]

SNDK Long 700 @ 32.05
Stop @ 31.87

 

[WinAtTrading]

Stopped out @ 19.03

Hey Robocop

Carefully those shorts when the market is rallying. Watch the futures, and take trades in the direction of the trend.

The sentiment in the market this morning looks like there could be a bounce off the lows and a reversal for a couple days before the downtrend resumes.

I'm out on a business meeting,mso doing some trading using my iPhone and iPad. Long EUR/USD, long FTSE100, Long SPX.

I've been watching this guys video's today, very good info. I'm sure you'll learn something. He also gives some good infomation on trading times.
30 Minute Breakout Strategy

I've also been testing trading times during the weekend. Had a lot of success back testing the trading times of 11am to 12pm and 2pm to 3pm. Very good ratio over a small time period but would require further testing over longer time period.

Have a great day!

Somesh

 

[robocop]

CTRP Long 1000 @ 19.08
Stop @ 18.88

 

[robocop]

BBBY Long 400 @ 68.94
Stop @ 68.50

Taken 200 @ 69.50

 

[robocop]

SNDK Long 700 @ 32.05
Stop @ 31.87

Taken 350 @ 32.21

 

[robocop]

I have to go away (back in a half a hour)

 

[robocop]

SNDK Long 700 @ 32.05
Stop @ 31.87

I have a market if hit order @ 32.70. let see if hits it.