A shorter golf-specific blog this week, in preparation for the open which starts next week.
There are 2 tournaments normally to trade each week, on the European and US tours, so plenty to get stuck into.
Markets can be particularly thin at times, with low amounts of money flowing in and out. The trading properly begins on the 4th day particularly when a player goes short below 3/1 which is the area I will concentrate on today.
This is a good support price, but what other indicators would we look at in order to construct some automation rules?
As mentioned, market volume preferably over time will provide a good base.
Prices change at this point either if the player gets in trouble, or chasing after players catch up so I will often apply historical course and player data from my database. Courses are often setup harder on the final holes and although it is not as common as 3 years ago, it’s often hard for a player who has led going into the final day, to hold onto that lead. Jim Furyk comes to mind, go check his history in this area.
Weight of money is another variable I use, one which shows short term movement referencing weighting close to the live price. A second looking at a wider range helps with long term movement.
Finally, the price relationship between players often give create clues as to whether the leading player has potential to move in further or out, in essence whether the current price offers value.
I have several long term clients I have worked with this over the years, so I cannot reveal more but preparation and patience will give some great opportunities to brighten up your Sunday evening!