Grey1's US trades using VWAP

This is a discussion on Grey1's US trades using VWAP within the Stocks forums, part of the Markets category; Two Long signals .. VRTS and MEDI .. MEDI trade I pulled out as the VWAP signal was @ 25.08 ...

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Old Jan 5, 2004, 7:43pm   #1
 
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Two Long signals ..

VRTS and MEDI .. MEDI trade I pulled out as the VWAP signal was @ 25.08 but there was over 8K bid @ 25 and even 3200 lower @ 24.85 .. SO no trade .

The long VRTS was pretty clear cut trade with no lower support than my entry of 36.73 .. Sold 1/2 @ VWAP and the other 1/2 to run. The stop was moved up to VWAP ...
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Old Jan 5, 2004, 7:49pm   #2
 
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Grey1 started this thread Medi Trade on L2.. This is the advanage of using L2 for VWAP trading .. If I did not have access to L2 then I would not be any wiser and probably would take the trade..

See the 3 bids of 2476, 1820, 2500 @ 25 $...
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Old Jan 5, 2004, 7:54pm   #3
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VWAP

I always read your posts with interest Grey1, but I have to ask,
How do you get VWAP information?
I looked for a thread about VWAP, but can't find one?
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Old Jan 5, 2004, 7:57pm   #4
 
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Grey1 started this thread The argument That I have been putting forward has always been ,, would we trade the momentum or do we go for weakness while the rest are trading momentum ..

I feel momentum trading is no longer a viable strategy for professional traders.. We should be selling into momentum than buying into it ..

The whole idea is that a Momentum is BORN in lower time frame.. with little price movement .. This is where traders should be taking a postion and not when the trend is apparent to all market participants..

While VRST was going down the upward monetum was being born..

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Old Jan 5, 2004, 8:03pm   #5
 
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ianh
I suggest you read Grey 1's posts by calling them up by a search on him under find a member and take it from there. Its what I often do when looking for an answer to a question when I know a member has expressed a view. It can be time consuming but is usually informative

Grey 1
Can you explain the symmetry of your upper and lower vwap lines against vwap itself at points of change please?

Ron
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Old Jan 5, 2004, 8:07pm   #6
 
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Well....i guess there's more than one way to skin a cat. Mr. Charts seems to use momentum for his trading which appears very successfull. Your style seems to conflict with his methods but you know what you are doing and seem very profitable yourself.

I guess its about making sure your good at whatever method you choose, and you'll be ok.
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Old Jan 5, 2004, 8:43pm   #7
 
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Grey1 started this thread Rog,

In 1999-2000 I used SD but had a disastrous result so I moved to a MPD and the result has been much better//

MPD bands or maximum permissible deviation =( High _low)/2

The upper and lower bands then becomes VWAP + MPD and VWAP – MPD

How ever the key in VWAP trading is not going long or short if stock hits the bands .. You only trade the signals from the lower VWAP ( buying into weakness ) in strong market and visa versa.

These bands also cater for cyclic oscillation of stocks intra day as the bands widen on both ends ..
The bands are symmetrical around VWAP at all times and not just at the point of reversals.. ( have I understood your question right ?)

As a complete strategy one needs to have a Money management attached to this strategy … You take a pos when stock hits the bands ( lower band in case of going long ) , selling ½ @ VWAP moving stop to around VWAP and let other ½ to run to outer VWAP ….

Just one point.. There is not such a thing as 100 % strategy.. .. But there are strategies which have statistical edge and are more mechanical than others..
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Old Jan 5, 2004, 9:18pm   #8
 
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Grey1 started this thread Ian,

Some platforms offer VWAP as standard such as realtick, others donot and you have to define that yourself.. VWAP is a broker level data and is watched by all institutional trader and is vital IMHO in trading of any kind of instrument..

Look at the VWAP links

http://www.tradersmagazine.com/sup/atd.cfm

http://www.redi.com/iptrdr.html

Do a google search and u can read more about VWAP and why MM all watch this all important bench mark ..

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