– the market can sometimes be very fast and volatile, and if playing for a opening gap, place both orders (profit taking and stop-loss) and do not watch it, get alerted and place it manually – execution might be too late after a good idea. Here are further thoughts for you guys out there: I assume you just had a hunch and wanted to portrait on this teaching-video this time the gap will be filled 100%, therefore you did not accept half-gap-fill, didn’t set an automated profit-taking, you just waited with an alert and closed it manually.Ĭ) I think this is a risky strategy where you aim for (general) 50% gap (here: 17 points), but set your stop at 1.5x gap = 10721…You went long at 10774, so your loss would have been 53 points = 1:3 ratio, in fact a good ratio in trading should be 2:1 (perhaps not with gap-filling strategies), similar to Martin’s comment. Strategy (gap-filling here close 10805 / open 10771 = gap 34 points):Ī) In my opinion a trader should consider and set a stop-loss with the entry trade already.ī) Initially you mentioned your target is half the gap (17 points or 10788), and during the second 3-minute candle you would have been filled. So, please don’t make it look ‘that’ easy or the rookies believe these are easy money trades. But you should also consider many of those start at scratch and have little background or experience. There are many people now glued to your blog since you made your BBC hit. If you cannot be bothered to watch the whole video (which I recommend you should), then here are the main bits:ġ) The Opening Bell and placing the trade: Scroll to 0:48 of videoĢ) Placing an alert to notify you of when the target is hit: Scroll to 1:40 of videoģ) How the trade ended: Scroll to 4:53 of video STOCK GAP FILL STRATEGY PLUSPlus I’ll reveal the best and worst days for trading the gap. If your stop gets hit I do not suggest re-entering the market – for me the gap trade is over for the day.īy the way, watch my new video on how you should trade the gap strategy for 2016. 9:30 ESTĨ) Use a stop-loss of equal the size of the gap or, if you prefer, twice the gap size (the reason why a 1:1 or an inverse risk-reward is used here is because this is a high probability strategy and I want to allow the trade to play out)ġ0) If the gap does not fill by just before 16:15 EST (the close), then exit the market for either a small gain or loss. This is the same as “filling the gap”.Ĥ) You trade in the direction to fill the gap (or towards the horizontal line – as explained above)ĥ) If the open on the Dow today is lower than yesterday’s close, then we go long (buy) and if open above yesterday’s close then we go short (sell short).Ħ) The gap on the Dow must be a minimum of 20 points and no more than 50 pointsħ) Enter with a market order at the market open i.e. Tip: What you can do is draw a horizontal line at yesterday’s close and when today’s market opens, just trade in the direction towards that horizontal line. For a list of our recommended chart platforms see trading tools.ġ) Set up a 5-minute (or 2-minute) Chart of the Dow Jones E-mini Futures (or “Wall Street Futures”)Ģ) The timeframe for this trade is from 9:30 EST to 16:15 ESTģ) The chart will not necessarily show you the Opening Gap, which essentially is the period (or “gap”) from yesterday’s closing price on the Dow at 16:15 EST to today’s open at 9:30 EST. In fact, many day traders like myself have been using this high probability strategy for years.įor the MT4 chart platform we use: Markets dotcom. I don’t claim to have invented this strategy. The video was recorded by myself today at the market open (9:30 EST or 14:30 GMT). Thank you.In the above video I will show you a live example of a simple day trading strategy that I like to trade, called “The Opening Gap”. If you're trying to be an asshole, it's probably because you're raging from a loss, stop and deal with your issues or ask for help instead of taking it out on other people. No spamming, selling, or promoting do that with Reddit advertising here! Content creators must follow these guidelines if they want to post here.ĭon't be an asshole: You can provide constrictive criticism, but outright being an asshole doesn't belong here. Stay on topic: No content unrelated to Daytradingĭon't glorify losses or post wins without context details here. Posting & commenting requirements: Three (3) day old accounts and minimum 10 comment karma also follow the rules below: Subreddit Rules If you're new to day trading, please see the getting started wiki.
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