Thoughts of Trading Weekend Gap | Forex Factory

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Thoughts of Trading Weekend Gap

  • #1
  • First Post: Oct 15, 2008 6:57am Oct 15, 2008 6:57am
It will be easy to find weekend gap for major currency due to weekend trading. anyone have thoughts how to leverage those opportunity ? what kind of risk we are facing, if we leave a buystop and sellstop at end of market close time and close both order at beginning of market if there is one side of order was triggered out, due to weekend gap ?
  • #2
  • Oct 15, 2008 7:02am Oct 15, 2008 7:02am
Your broker is not obligated, and will not fill your order if price gaps beyond your price. Especially if the order would be filled in your favor. Playing gaps is a dangerous game and you have very little control over the oucome.
  • #3
  • Oct 15, 2008 7:07am Oct 15, 2008 7:07am
Quoting philmcgrew
Your broker is not obligated, and will not fill your order if price gaps beyond your price. Especially if the order would be filled in your favor. Playing gaps is a dangerous game and you have very little control over the oucome.
yes. it make sense. but i am thinking for those brokers using system to fill in your stoporder, there should be some logic behind to determine whether should fill your faverable price or not. Everything just happen within 5 seconds, it should have some solid logic to determine it. and that could be some opportunity there.
  • #4
  • Oct 15, 2008 2:31pm Oct 15, 2008 2:31pm
I use to make decent pips on gaps.. till about last february... not anymore... wayyyy to risky with all going on... gaps don't even fill sometimes anymore. The only way to play it, is the wait for a hh or ll so far on the h1 that shows gap fill direction... and even that is playing with fire...

Stay away from this and just make pips using your normal system.

Quoting teamaker
It will be easy to find weekend gap for major currency due to weekend trading. anyone have thoughts how to leverage those opportunity ? what kind of risk we are facing, if we leave a buystop and sellstop at end of market close time and close both order at beginning of market if there is one side of order was triggered out, due to weekend gap ?
DireXiv Make it happen, no one else is going to do it for you...
  • #5
  • Oct 15, 2008 4:50pm Oct 15, 2008 4:50pm
Quoting DireXiv
I use to make decent pips on gaps.. till about last february... not anymore... wayyyy to risky with all going on... gaps don't even fill sometimes anymore. The only way to play it, is the wait for a hh or ll so far on the h1 that shows gap fill direction... and even that is playing with fire...

Stay away from this and just make pips using your normal system.
thanks for the advice. may i know which broker you are using ?
  • #6
  • Oct 15, 2008 5:05pm Oct 15, 2008 5:05pm
Quoting philmcgrew
Your broker is not obligated, and will not fill your order if price gaps beyond your price. Especially if the order would be filled in your favor. Playing gaps is a dangerous game and you have very little control over the oucome.
Not all brokers do this. Some may fill your order at the current market price, no matter how far it has slipped past your desired entry point.

In over 5 years, I cannot remember the last time a weekend gap in the EUR/USD was not filled within the week. I guess it has something to do with the high liquidity in this pair. I never make a long term trade decision with this pair until the gap is closed due to the above.

Other pairs however can gap and not be closed for a long time (cable, geppy, even UJ can leave them open for quite a while).
  • #7
  • Oct 15, 2008 8:20pm Oct 15, 2008 8:20pm
Quoting NuckingFuts
Not all brokers do this. Some may fill your order at the current market price, no matter how far it has slipped past your desired entry point.

In over 5 years, I cannot remember the last time a weekend gap in the EUR/USD was not filled within the week. I guess it has something to do with the high liquidity in this pair. I never make a long term trade decision with this pair until the gap is closed due to the above.

Other pairs however can gap and not be closed for a long time (cable, geppy, even UJ can leave them open for quite a while).
based on your adviced, hedge the gap closing could be a good trading system for EURUSD ?
  • #8
  • Last Post: Oct 15, 2008 8:46pm Oct 15, 2008 8:46pm
Quoting teamaker
based on your adviced, hedge the gap closing could be a good trading system for EURUSD ?
Yes it could well be.

Only problem I see is the distance the price travels before it actually closes.

Last week's gap and this week's gap moved 200 odd pips before it decided to close.

I see the gap this week was closed to the pip on one of my feeds. Another feed has 4 pips to go, but I think that broker closes an hour before NY close Friday.

Any activity between NY close on Friday (NY time) and Aussie open on Monday (Aus time) can be considered a gap. OANDA is one broker I use to check any weekend activity as it does not close for the weekend (most/all metatrader brokers close during the weekend so it depends on the timezone they're in).

I do however rarely trade the gap, but am aware that it does consistently close within the week so any trade decisions are left until it does close.
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