GBPCHF, EURJPY, GBPJPY
Gap open trades.
Rationale:
The gap fills a larger percentage of the time than it does not. Money management here is tricky, as I'm not using a SL, but just watching the 5M charts. Shame on brokers for widening spreads so much. I have to make 15 pips just to break even. Sheesh.
Trade result:
This was a fantastic way to start the week. I made back almost 100% of what I lost last week, shy a couple of dollars. The overall result of these three trades was an account equity increase of +2.62% !! I took some partial profits along the way and let a trailing stop take care of the rest. I used 5 min charts, and watched the gaps fill (to at least some extent) very nicely. Of course I attribute these wins to the market simply doing what it does, and good thing I was along for the ride.
These trades, combined with the gap trades from last week (which I did not take) and the week before (which I took and got out nervously with a small profit, but could have ridden WAY up) intrigues me and will lead me to do some backtest results on previous gap trades. Specifically, I aim to find how often they fill, what the pattern seems to be, and how I can alter my MM strategy to have a reasonable RR scenario. If gaps fill 80% of the time, why not risk a more aggressive 4-5% each time, for example?
Gap open trades.
Rationale:
The gap fills a larger percentage of the time than it does not. Money management here is tricky, as I'm not using a SL, but just watching the 5M charts. Shame on brokers for widening spreads so much. I have to make 15 pips just to break even. Sheesh.
Trade result:
This was a fantastic way to start the week. I made back almost 100% of what I lost last week, shy a couple of dollars. The overall result of these three trades was an account equity increase of +2.62% !! I took some partial profits along the way and let a trailing stop take care of the rest. I used 5 min charts, and watched the gaps fill (to at least some extent) very nicely. Of course I attribute these wins to the market simply doing what it does, and good thing I was along for the ride.
These trades, combined with the gap trades from last week (which I did not take) and the week before (which I took and got out nervously with a small profit, but could have ridden WAY up) intrigues me and will lead me to do some backtest results on previous gap trades. Specifically, I aim to find how often they fill, what the pattern seems to be, and how I can alter my MM strategy to have a reasonable RR scenario. If gaps fill 80% of the time, why not risk a more aggressive 4-5% each time, for example?