Hi,
I’m using the Open Price Gap strategy manually on Tradingview (I know) and I have nice returns with it.
Basically I screen for stocks that open with a gap up or down between 2% and 8% or -8% and -2%, higher than $1 with a 30 days average volume of 50k minimum, no news and no volume at the open! I avoid miners and healthcare. It’s pretty easy to scan for these stock using filters on TradingView.
My goal is then to trade with a stop loss around a support, resistance, round number (this is probably the biggest challenge to automatized that strategy) and my take profit strategy is when the price reach 80% of the gap and i’m out before mid-day. My risk per trade is 0.25%-0.5% of my capital
Here the plan:
TRADING PLAN for OPG (open price gap):
Style: Day trading
Type: Mean reverting
Holding period: Closing before mid-day EST
Stock selection: No healthcare and mining, >1$, over 50k volume the last 30 days
Entry signal: Gaping in a specific range: 2% to 8%
Enter:
- Gap on no news!
- No volume at the open
- entry style no scale, 1 entry with a limit order
Take profit signal: 80% of the gap
Stop loss: above round numbers 0.25%-0.5% risk/trade
look where my taking profit is and put my stop loss where I find the resistance, far enough
bailout indicator : If news again your trade, get
I can see how to screen on PRT for these stocks but then I was wandering if it’s possible to implement an automatic strategy for that.
I have attached the results of this morning to show you how the gaps get filled very well, both long and short.
Thanks for reading me,
Warm regards
j.
.
