Sell price, buy price assistance

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This topic contains 10 replies, has 6 voices, and was last updated by  Alexander Horn 1 month, 3 weeks ago.

Viewing 11 posts - 1 through 11 (of 11 total)
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  • #66791

    lthreatt
    Participant

    Some of you may roll your eyes at my questions but my previous stock market experience was limited to choosing some mutual funds in my 401k plan. When new signals come out how do I decide on a sell price for the positions that I’m selling and how do I decide on a buy price for the new positions? Do most of you have a rule of thumb that you follow? Should I simply wait until the market opens to see what the bid-ask prices are and use that? The prices on some stocks and ETFs seem to fluctuate quite a bit throughout the day so like everyone else I want to buy low and sell high but not at the expense of not closing out old positions and opening new ones.

    #66792

    robininni
    Participant

    I’m curious too what others do. Market orders for the next trading day to sell and buy as needed? Or Limit orders with the limits placed very reasonable so that the order will essentially fill as soon as the market opens as a market order but with some protection from getting gouged on an ETF that doesn’t have as much volume and might allow for some fuckery from the market maker if doing just a market order with no limit.

    Surely we want to get the buys and sells done ASAP so that we are in the positions we are supposed to be in for the new month however I think the returns reported on the strategy/portfolio pages will never been the same (could be better or worse I guess) for us actually applying the strategies/portfolios since they are basing an entry and exit price on the last trading price and day of the previous month and we don’t even know what to buy and sell until after that time has passed. Hope it ‘averages’ out so that we do better some and worse some but closely mimic what monthly returns are posted on Logical Invest for our specific strategies/portfolios we follow.

    It’s a bit scary since there is so much selling and buying at monthly intervals so that if you can’t get in some of the positions at a price close to the close of the last trading day of the previous month you really could have vastly different monthly returns than was LI shows and this would kind of defeat the purpose of the whole adventure in my mind. Strategies/porfolios that had new signals every 3 months or even 6 months would seem to smooth out this potential problem quite a bit.

    #66866

    Deshan Woods
    Participant

    I rebalance on the first trading day of the month within the first 30 minutes of market open. I only rebalance when there is more than a 5% difference in percentages. I sell the proper amount of one security and then buy the amount of the other after inputting the share prices of current trading. Takes just a few minutes. Haven’t had a problem and I use market orders. Percentages are pretty close month to month. Some months I do slightly better, some a bit worse, but long term, about the same.

    #66917

    robininni
    Participant

    Thanks for your input, Deshan!

    #66960

    lthreatt
    Participant

    Thank you Deshan, that helps a lot.

    #67103

    Vangelis
    Keymaster

    Thank you Deshan for you input. Trading during the first 30 minutes after the open of the first day of the month is fine as long as you avoid the first few minutes which can be volatile, especially for less liquid ETFs. Limit orders are better but for liquid ETF (with 0.01 spreads) market orders can work. For less liquid ETFs we recommend using limit orders around the mid-price between the bid and the ask.

    Keep in mind that you can also use QuantTrader light to issue signals at the last day of the month. You can fire up QT 30-40 minutes before trading ends, update all quotes and then read the allocations. Unless prices change dramatically at the end of the trading sessions, the signals will be the same as the one issues after markets close. You can then go to you favorite broker and rebalance.

    #67338

    lthreatt
    Participant

    QuantTrader (V516S) isn’t working for me when I try to use intraday prices to get signals. It gives the following error:
    One or more ETF(s) contain bad current Prices !
    (The current Prices are replaced by the last close)
    GSY, TIP, ALGN, AMD, CDNS, MELI
    This is the error on the NASDAQ 100 strategy but it gives the error no matter what strategy is selected.

    If I quit the Consolidated Allocations screen and open it again QT reports “Downloading Intraday Prices” but then gives the “bad current Prices” error again. On the Data Handling screen I’m selecting “Use End Of Day Data and Intraday Prices” and “EOD” for the data provider.

    I was also getting an error on DWDP after the data download completed. I figured out that by removing references to DWDP in the DOW30.INI file and deleting the _DWDP.CSV file I don’t get the error but that brings up another question. As companies are added or deleted from the DOW 30 or NASDAQ 100 how is QuantTrader updated to reflect the changes?

    #67340

    Alexander Horn
    Keymaster

    Thanks for reporting that issue! We’ll have a look and get back to you.

    #67434

    Seems that Yahoo changed the access parameters to intraday data. I will try to fix this in the next version of QuantTrader

    #67972

    lthreatt
    Participant

    Any idea when QuantTrader will be updated to accommodate Yahoo’s change on intraday data?

    Also, my portfolio has 10% allocated to MYRS but I didn’t receive a rebalance email at the middle of the month. Should I have received an email and if so would it have had rebalance signals for the other strategies in the portfolio or just MYRS?

    #68064

    Alexander Horn
    Keymaster

    We’re going to release a new QT version this week to accommodate this change and also include some new features. Sorry if it took a while.

    We decided not to send mid-month emails anymore, as only very few subscribers have included MYRS in their portfolio, and a mid-month signal would be rather confusing. You can simply go to “my portfolio” on the 16th of each month to see the the change in your portfolio. A significant up- or down movement in MYRS could change the total % of it in your portfolio, and therefore indeed trigger other rebalancing needs. For example if due to a upswing in MYRS it would be allocated 15% – then the other positions would need to be rebalanced down by 5%.

    In practice this should only happen few times – as a rule of thumb only rebalance if a position changed by +/- 5% (of the total 100% allocation in the portfolio), anything less would cause more transactional cost than expected benefit.

    Hope this clarifies,
    Best, Alex

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