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#1
10-05-2007, 11:45 AM
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Gap Trading & Investing Forums
My brother, a senior at West Point, has asked me if I want to help him do gap trading with Dow futures. Each West Point student receives $30,000 their junior year to spend as they like. However, the firewalls on the WP network don't allow the software (Tradestation) needed to do the gap trading, so that's where I come in.
Despite graduating college in May with a double Accounting & Finance degree, I don't have any trading experience, let alone trading gaps. I've subscribed to a two-week subscription to TradeTheMarkets.com, but I was wondering if anyone here has any experience trading gaps. More generally, I was also wondering if anyone knows of any good investing forums that I could browse for advice. Thanks. 
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#2
10-05-2007, 12:26 PM
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Re: Gap Trading & Investing Forums
[ QUOTE ]
My brother, a senior at West Point, has asked me if I want to help him do gap trading with Dow futures. Each West Point student receives $30,000 their junior year to spend as they like. However, the firewalls on the WP network don't allow the software (Tradestation) needed to do the gap trading, so that's where I come in. Despite graduating college in May with a double Accounting & Finance degree, I don't have any trading experience, let alone trading gaps. I've subscribed to a two-week subscription to TradeTheMarkets.com, but I was wondering if anyone here has any experience trading gaps. More generally, I was also wondering if anyone knows of any good investing forums that I could browse for advice. Thanks. [/ QUOTE ] um, my girlfriend's brother graduated from west point this year. i went to the graduation and am very good friends with him. no west point student gets $30k from the government their junior year. they get room and board paid for by the govt in addition to their entire 4 year education. for that, they owe 5 years of service to the govt. my gf's brother is now stationed in texas. whatever your friend told you about "getting 30k" is absolutely ridiculously false. do you really think the govt just hands out that kind of money to college kids that they are already completely paying for their education? they get a certain amt of money to live and what not for room/board/food etc., but noway do they get a lump sum payment of $30k in their junior year. Barron
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#3
10-05-2007, 12:47 PM
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Re: Gap Trading & Investing Forums
ok, guess i didn't explain the 30K very well.
it's a loan with a very low interest rate it's called the "cow" (WP juniors are called cows) loan. edit: have you ever heard of the book "Absolutely American"? It's a great book about life at WP. It also addresses the Cow Loan, touching on the variety of outlets the students choose to spend the money on (cars, investing, etc).
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#5
10-05-2007, 04:34 PM
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Re: Gap Trading & Investing Forums
he does have a strategy, but i know he doesn't have any experience putting it into use, and frankly, the strategy sounds a little too good to be true.
Here's some statistics he gave me: Gap fill chances during the week: Monday – 65% Tuesday – 77% Wednesday – 79% Thursday – 82% Friday – 78% Also, gap fill chances given initial gap: 1pt = 10 Dow Points 1pt – 93% 2pt – 90% 3pt – 82% 4pt – 86% 5pt – 60% 6pt – 77% 7pt – 71% 8pt – 54% So I guess what I'm wondering is if gaps generally fill, why isn't everyone doing this? Also, are there any quality investing forums with good content I could check out? Thanks again.
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#6
10-05-2007, 05:14 PM
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Re: Gap Trading & Investing Forums
[ QUOTE ]
he does have a strategy, but i know he doesn't have any experience putting it into use, and frankly, the strategy sounds a little too good to be true. Here's some statistics he gave me: Gap fill chances during the week: Monday – 65% Tuesday – 77% Wednesday – 79% Thursday – 82% Friday – 78% Also, gap fill chances given initial gap: 1pt = 10 Dow Points 1pt – 93% 2pt – 90% 3pt – 82% 4pt – 86% 5pt – 60% 6pt – 77% 7pt – 71% 8pt – 54% So I guess what I'm wondering is if gaps generally fill, why isn't everyone doing this? Also, are there any quality investing forums with good content I could check out? Thanks again. [/ QUOTE ] Conspicuous by its absence is any mention of the size of the winning trades vs the losers. There are many trading strategies that rack up a high percent of small winning trades but the few losers are much bigger and wipe out all the profit from the winning trades. One of the more common things people have been doing that fit this profile is selling naked index puts, it works great until you get caught by a sell off. Just ask Victor Niederhoffer, rumor is he has now blown out his second hedge fund doing just that.
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#7
10-05-2007, 05:14 PM
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Re: Gap Trading & Investing Forums
ssh tunnel + proxy server?
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