Fade The Gap One Percent

I am excited to offer my first study for publication! It was a lot of work. I didn’t formally track my hours, but considering the data collection, creation of tools, i.e. screener and spreadsheet, methodology development, writing the study, etc., it must have taken at least 60 hours. How much time would you save if you get this study, assuming you even come across this strategy?

The study is on a simple stock scalping strategy. You note the opening gap and enter a trade when price starts to fill the gap, and set a target for a 1% gain. Its all explained in detail in the study.

I tested it daily for weeks. Data collection spans 147 samples from 4/28/2023 to 6/16/2023. The study includes 145 charts illustrating the price action. Both winners and losers.

This trading strategy has a positive expectancy of $15.60 per trade on average for every $100 at risk, based on the actual events during the study period. The math is shown in the study. That’s a 15.6% return. That’s not 15.6% annualized, that’s daily, on average. There was no cherry picking events. I ran a screener every day and included every stock the screener gave me in the study. I'll be including all the raw data so you can see for yourself.

This is not my strategy but it is my test. I haven’t traded it yet but I am planning on creating a bot (algo, algorithm, black box, robot, etc.) to trade this strategy. First with a simulator, then with real money.

Anyone who learns this strategy isn’t guaranteed to make money. Like with any strategy, they could let their fear, greed, and impatience interfere with the rules. They could make mistakes. There could be a temporary draw down period. Stocks can be halted, unexpected news can come out while you’re in the trade, etc.

So, I can’t say it’ll make money for you, but I’m confident it will make money for me. When the bot is completed and tested, and demonstrating a positive equity curve, I’ll be making it available for other traders to use. If you’re interested, please subscribe to this free blog and you’ll get an email when the bot is ready.

If you want to get the study, please send me an email for now at TradeTesters@n-t-s.com and I’ll respond with instructions. I’m in the process of setting up a digital products platform to handle this automatically in the very near future.

Given that the study can be learned and returned, we have to have a no refunds policy.

Share