today, there were a whole heap of gaps. on my platform which is a wee bit limited, i saw 15 or so pairs that gapped one way or another.
i havnt tried this yet but i wonder if a scattergun approach to these might be worth a go.
we expect most of thes gaps(if not all) to be closed at some time or rather.
open trades on all gaps that you see then put a take profit on gap fill and have a stop loss on each the other way to the tune of the gap fill for a 1:1. note that it could be a bit of a mission to do this on 15 pairs. there are not always 15 pairs on monday mornings however. because most gaps fill, the hit rate should be quite high and there should be a decent nett profit every time.
this is just an idea, there are some questions - what is a reasonable time for expectation of gap fill? with the 1:1 thing, there will be varying profit/loss and while you might get more wins than looses on any given monday, the total for the losses might be higher than the total for the wins. it strikes me that it would be rare for that to happen.
i should do a bit of research - go back in time and look at times to fill, how often the stop loss may have been hit etc.
i hope i dont get laughed off hc for suggesting the above.
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