Enveloping orders on a basket of stocks - Trading-Lab

scalper · #1 08-30-2007, 08:02 PM

did anyone ever try the enveloping orders strategy as promoted by the Bright gang a few years ago? They would basically envelope a basket of NYSE stocks with orders on both sides (done with an automated program) and at a certain pre-determined distance (say 20 cents above and below the last price). The idea is to get filled every time prices gap in either direction and look for price action to retrace and gaps to fill. it seems like this strategy would be best in low volatility environment. anyone ever tried it?

daytraderB · #2 08-31-2007, 06:34 PM

as you said, this strategy works best during low volatility times. I used to trade this way. Then, I replaced it with other more rewarding trading strategies. Don't get me wrong, you can make money with it on the right basket of stocks. Still, you have to be very careful as stocks can gap up/down and keep on going and going....hence, this strategy is best played in a low volatility/no news environment

ProTrader · #3 09-04-2007, 04:49 PM

as with any other trading strategy, nothing works all the time. The trick is to know as many strategies as possible and be ready to use them when the right time comes. I traded and still trade this way. It works fine for me. Build a basket of 10-15 stocks and try it out. start small.

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#1 08-30-2007, 08:02 PM
scalper Junior Member Join Date: Jun 2007 Posts: 29	Enveloping orders on a basket of stocks did anyone ever try the enveloping orders strategy as promoted by the Bright gang a few years ago? They would basically envelope a basket of NYSE stocks with orders on both sides (done with an automated program) and at a certain pre-determined distance (say 20 cents above and below the last price). The idea is to get filled every time prices gap in either direction and look for price action to retrace and gaps to fill. it seems like this strategy would be best in low volatility environment. anyone ever tried it? __________________ scalper

#2 08-31-2007, 06:34 PM
daytraderB Member Join Date: Jun 2007 Posts: 63	as you said, this strategy works best during low volatility times. I used to trade this way. Then, I replaced it with other more rewarding trading strategies. Don't get me wrong, you can make money with it on the right basket of stocks. Still, you have to be very careful as stocks can gap up/down and keep on going and going....hence, this strategy is best played in a low volatility/no news environment

#3 09-04-2007, 04:49 PM
ProTrader Senior Member Join Date: Jun 2007 Posts: 109	as with any other trading strategy, nothing works all the time. The trick is to know as many strategies as possible and be ready to use them when the right time comes. I traded and still trade this way. It works fine for me. Build a basket of 10-15 stocks and try it out. start small.