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Does Anyone Do any Day Trading? I have a question.
Old 06-11-2020, 09:41 PM   #1
Dryer sheet wannabe
 
Join Date: May 2020
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Does Anyone Do any Day Trading? I have a question.

I have been practicing in the simulator (lightspeed) day trading for a month now. I am attempting to be more constant than profit oriented. I've set aside some rules such as 'only using 0.02% of total equity, thus protecting 98%.' and Calculating the total amount willing to loose per share, and not the total number of shares I want. Once that total loss is reached, i'm done for the day etc... i have list of like 30 rules i read every morning before starting a demo simulation to practice being consistent more than just being 'profitable' ...that whole Andrew Aziz thing about managing RISK is my job and not trading stocks for big profits. etc..



So this is what i need understanding about, because something happened today that does not make any sense to me. I have hot keys specifically designed for my personal taste to 'buy 80 shares at ask' and 'sell 80 at bid' 'sell half of position' 'panic escape out all shares' etc... and last and most importantly 'place stop loss of $0.20' below position entry price..



Now please examine the following picture of the stock UVXY .lightspeedglitchpic.jpg


I would like to make a few notable things:



1)This stock did not have a huge spread. It was roughly 3 cents apart between bid and ask
2)Please note the time, THE SECONDS in particular, (time in question 15:36:44 to 15:36:47) of how quickly this happened. This was my first trade of THIS (UVXY stock). I was on a loosing track of VXX so i moved on, cut my losses. Because the moment I entered, it was "already down" that much, putting me in the negative with a price that was almost 3 dollars in 3 seconds. I choose this stock because of the tight spread and momentum, but it was not as fast momentum to have this kind of drop. It's also not as insanely volatile as I would have wanted it, however, still this doesn't mean it wasn't rising and on the uptrend. Higher highs and higher lows. Ascending triangle with trend.

3) notice the momentum of the trade as it was moving up in increments roughly in 0.25 per min. Thus indicating that it wasn't moving in dollar amounts in a matter of 3 seconds, especially since I was watching the level 2 in order to have minimal risk. the spread was still there of only 1-3 cents (ish) of bid and ask. It was also NOT jumping up and down in dollars. I was using hot keys which were specifically designed to use limit pricing AT bid and ask.



4)Notice my taking profits by cutting in half position when my 2:1 ratio is being hit or above. This is important because it shows the minutes to cents of my taking profits, therefore showing it wasn't jumping up and down in 3 seconds.

5)Notice that it never stopped me out at my stop loss of $0.20 below the entry price. But the trend continued upward that i kept doubling down on position or taking profits or coming all out, EXCEPT the 'glitch.' Which has $2.78 difference in 3 seconds. I call this a 'glitch' because It doesn't make sense considering how the spread was tight, and around the same price of the bid and ask. It had higher highs and higher lows at the time.



I understand this is a simulator and demo, but that's why I am practicing. I don't want this done with real money and a real mistake occurring.



Can anyone help me understand how this glitch happened? Maybe i'm missing something. Any consideration and advice would be greatly appreciated.



Thank you for your time
Me
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Old 06-11-2020, 09:58 PM   #2
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Yes, it appears that there is a glitch in the data stream you are looking at.

What is the date for this? I can check what actually happened on that date.
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Old 06-11-2020, 11:00 PM   #3
Dryer sheet wannabe
 
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Firstly Thank you for a quick reply.



The day was 6/11/2020. This would've been a decent green day for me if this glitch didn't happen. But it's red. As you can see i brought it up to -95 bucks at the end, but ...I couldn't understand it.



Thank you for your prompt reply. I look forward to any advice you may offer.



Me
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Old 06-12-2020, 04:10 AM   #4
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By the looks of the actual time and sales data, they have you on a 15 minute delay in the stream you are receiving. During the time period, at no time did the bid fall below 44. At 15:21:47 the bid was between 44.17 and 44.25 and ask was between 44.18 and 44.28 for all trades which took place. So it appears that the issue was in the sandbox data stream your provider was giving you.

My advice - ignore what happened for that data point, and use it as an indicator that you need to double check things that they are calculating your profit/loss correctly. For what happened here, change the data point to something between 44.17 and 44.28. Since you sold, use 44.17 to give you the worst scenario. If you would not have sold in that situation, then adjust what happened manually and recalculate by hand if possible.
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Old 06-12-2020, 09:06 AM   #5
Dryer sheet wannabe
 
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Yes Lightspeed does have a 15 min time delay. What you said makes a lot of sense and I really appreciate you taking the time to help a complete stranger and doing a little research for a newbie.



This is reassuring considering I would be ahead as a green day overall for my consistency in my record keeping. Just a quick question or two. What did you use for the data stream, after the market had closed to help me out? And also, what would you recommend as a screener/scanner?


Thank you so much for your assistance. Any further advice is appreciated should you feel inspired to do so.



-Me
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Old 06-12-2020, 09:54 AM   #6
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I trade with Fidelity. In their Active Trader platform they provide a function to retrieve time and sales data for current and prior dates.

For screener/scanner, you mean just a stock screener to query for what stocks meet a given set of criteria? All of them are pretty similar. I personally like the one MSN Money provides:

https://www.msn.com/en-us/money/stockscreener/

Yahoo Finance's is also pretty good:

https://finance.yahoo.com/screener
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Old 06-12-2020, 10:48 AM   #7
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Thank you. And yes I was referring to the main search but I hear that you can also have live real feed updates, say you want to be alerted if the relative volume jumps. Do they have scanners such as that? because the yahoo or finviz will only show results when you click 'search' for that time period



~Me
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