Applying an EOD Strategy

SoldierOfOne

Junior member
39 0
Hi Sharky
I’m playing this competition by looking at EOD charts and placing short or buy instructions for the following day. There seems to be a risk in this strategy, in that if the market makers open the price at something that is markedly different to which it closed at then…

e.g. Aviva closed last night at 410.25p. I placed an instruction to short and this lunchtime, I see the price I paid was 400.25p, and the open price was 400p…the lunchtime buy price (as I write) is 408.25, and hence I’m in a loss position (although I think I’m winning!)

Am I reading this correctly? If so, then I may be better to wait until the markets open in the mornings (though I cannot always do this)

Thanks

SoldierofOne
 

SoldierOfOne

Junior member
39 0
Hi FTSE Beater
Firstly, a public thank for your sterling work over on the First Steps board. Very much appreciated.

Secondly, yes, I did place stop loss and target price ('limit order') as follows

AV price last night = 410.25p
buy or short; short
stop loss = 450p
limit = 350p

and so R/R of 1.5

Now then, I know you advocated a R/R of 3 but I'm finding these hard to come by!

Cheers

SoldierofOne
 

FTSE Beater

Experienced member
1,518 4
Hi SoliderOfOne

No problems with the First steps stuff - which reminds me, I need to do another post soon :)

You selected to short AV. and if you place a trade overnight, it goes through at 9:00 the following day (one hour after the open, so you get a reasonable spread). - hence your price of 400.25

HTH :)



PS: I never said finding a 3:1 R/R would be easy :cheesy:
 

LORD JAMLA

Member
98 7
You wouldn't have got a better price in real life, using EOD charts. Footy opened 20 odd points down at 9.00am, spread before that is too large, 9.00am is the best option - though I can never come out on the good side using it either.
 
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