Gaming HFTs Part III: Preying For Morning Profits

Gaming HFTs is a series of articles. Earlier posts can be found at Part I & Part II.

In this thunder and tumbleweeds market environment that I more thoroughly explained in my last article (Gaming HFTs Part II: Thunder & Tumbleweeds), the momentum and liquidity can surge like a tsunami and dry up like the salt flats in a matter of minutes. Eat what you kill is the underlying theme in the trading game. As a profit hunter, one must go where the ‘action’ is and make sure the target has enough meat on the bones when you get there. This article will focus on how to find suitable trading candidates in the morning.

Playing the right stock is half the battle every morning. The key is to have a handful of candidates on the screen to stalk so that when one trigger fails, you have ample supply of alternate prey. The caveat here, however, is more than likely the momentum will move simultaneously so decisions have to be made quickly on the fly to drop and pursue another target or stick it out with the current hunt.

There are two types of prey...

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