I'm reading so many articles about how to trade the weekend gap and most of them explain that the gap will high likely (70%) close - so one should trade towards the closing price of the friday before.
I have another approach which seems at first glance way more profitable (like...100 % profitable...) and that's why I think that I forgot some important detail about it. I want to share it with you and hear what's good or wrong/bad about it (I haven't tried it out yet, just came into my mind today):
So just before the market closes on friday you open a buy stop order just a few pips above the current price (always bear in mind the spread+ a few more pips) and also a sell stop order a few pips below. no stop loss, no take profit.
So when the market opens on monday and you have e.g. a gap of 20 pips, that means that one of the orders got triggered and you're automatically like 15-18 pips in the money. And you immediately close the trade.
So I guess something's wrong with this strategy, right? Because this seems too easy.
I have another approach which seems at first glance way more profitable (like...100 % profitable...) and that's why I think that I forgot some important detail about it. I want to share it with you and hear what's good or wrong/bad about it (I haven't tried it out yet, just came into my mind today):
So just before the market closes on friday you open a buy stop order just a few pips above the current price (always bear in mind the spread+ a few more pips) and also a sell stop order a few pips below. no stop loss, no take profit.
So when the market opens on monday and you have e.g. a gap of 20 pips, that means that one of the orders got triggered and you're automatically like 15-18 pips in the money. And you immediately close the trade.
So I guess something's wrong with this strategy, right? Because this seems too easy.