S&P 500 E-Mini Daily Trade Call - Feb. 19th

DISCLAIMER: I am not recommending this trade. This is for informational purposes only.

Daily Trade for February 19
February 19th, 2007


Prior Trade Results:

Loss of $35 per contract

Ending Balance:

$62,810

Trade for Today:

Long 2 E-mini SP contracts - NO CHANGE HOLDING CURRENT POSITION

Comments:

This trade is up 17 points since it began 12 days ago. 12 days is an above average holding period, and it normally takes one decent down day to reverse the position. If you want, you can try and anticipate it, but you also risk missing a final surge upward before we come back down.

The market is mostly closed today? How do you manage this trade today?

Sorry, you are right. The model goes off of the previous close data. So this trade is meant for the next opening of the market, which in this case would have been Tuesday.

However, there was no trade to take either way. Currently holding a trade from Feb. 1st.

Do you not close your trades at the end of each day? I thought in an earlier discussion you said that you closed at the end of the day and re-opened the following trading day.

Hey day trading,

The trades that I post are from a statistical model. The rules of trading for the model is that all trades are placed at the open of the trading day. No other trades are made throughout the day, so if a position is to be closed, it won't be closed until the open of the next day.

For example, if today's trade called for Long 2 Contracts, then I would open the position with 2 contracts at the opening of the markets. Then if tomorrow's trade (which is determined after the close of the current trading day) is Short 2 Contracts, then I would place an order to short 4 contracts at the open of the markets the next day. 2 of the short contracts would close out my Long 2 Contracts position, leaving me a net of 2 short contracts, which is the daily trade call.

Hopefully, that helps clear things up a bit. Again, there is at most 1 trade placed per day at the opening of the market. Since Feb. 1st, the model has been in a Long 2 Contract position, so there haven't been any trades to be placed at the open. However, I expect shortly there will be a short trade.

Best of luck trading!

Thanks. I didn't realize that positions were being held overnight. I remember reading in James Altucher's book (I think) that if you were swing trading and didn't hold overnight then you were missing out on most of your profits. But I suppose that by definition swing trading implies holding overnight anyway.

jshug43460 you say

The trades that I post are from a statistical model. The rules of trading for the model is that all trades are placed at the open of the trading day. No other trades are made throughout the day, so if a position is to be closed, it won't be closed until the open of the next day.

When does the trading day start for you 4.30 PM or 9.30 AM?

Hi inventor,

The trading day starts at 9:30 am EST for the model.

The close of the trading day is 4:30 PM and the owner of the model puts out the trade for the next day in the evening after the close.

So, you know well in advance of the next open what the trade for that day will be.

Hope that helps.