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Gap Scalper

Usually Wall Street falls a bit after closing. Before trading in CFDs on the market price is disabled for an hour the Gap Scalper goes short. See the live result >> After strong moves in the market the expert doesn't open an order. A tight StopLoss permits a big lotsize with little risk, a clever TakeProfit generates a good steady profit.

The strategy works with CFD's on the SP500 and NASDAQ100. But for the smaller spread in relation to price the CFD on the Dow Jonesgives the best result. Brokers call it WS30 or US30 or DJI30.

The Gap Scalper doesn't open orders on Friday evening, so a big weekend gap in the wrong direction is excluded. Of course, during the week, after the one hour of disabled trading a gap up may occur. The StopLoss is set to 20 Dow points, a fairly huge distance for that time of day. So the StopLoss was never exceeded by a gap in our test period. More probable is a huge gap down, what would improve the result a lot.

The CFD must be based on the market price and trading is disabled for an hour after trading on NYSE stops. if the CFD is based on the future price the strategy doesn't work! Choose a broker that doesn't charge swap for short positions. Some brokers just charge swap for long positions. Due to the small TakeProfit the spread is important for the result. Tests were made with 2 Dow points spread. There are brokers with less spread, but control if the spread is low at night too! Some brokers have variable spread that wides out to 3 or more Dow points at night - then trading the Gap Scalper strategy is poor! A rebate system can improve the result. In the comments section we recommend brokers for this strategy.

Last day of the year a trade is triggered is day 357. So after 23. of December the expert pauses until 2. of January.

Make shure that the time settings are correct. Default setting is for server time= London time. If you are not shure what to set for HourOpen make a backtest and look if the Gap Scalper opens the order at the last bar before the market closes for an hour. HourClose must be set 4 hours later.

Check winter/summertime changes! As Europe and Wall Street differ in the date of change you must check this. Set the time settings so that the Gap Scalper opens the order at the last bar before the trading closes for an hour. For backtests winter/summertime changes in 2016 the time settings are in the program, but work only correct if your timezone is not too far away from europe.


Settings

  • Auto_Moneymanage: automatic money management can be used or disabled
  • MaximumRisk: how much % of account free margin is set to risk for each trade
  • Lots: lot size if automatic money management is disabled
  • StopLoss: distance of stop loss from Order Open Price in Points
  • TakeProfit: the distance set as hidden TakeProfit
  • TakeProfitClose:the distance of Points from Order Open Price a candle close must exceed
  • HourOpen: Hour when Order is opened
  • MinuteOpen: Minute when Order is opened
  • HourClose: Hour when Order is closed if it hasn't been closed before
  • MinuteClose: Minute when Order is closed if it hasn't been closed before
  • Day_No_Work_1: weekdays when the expert doesn't open orders
  • Day_No_Work_2: 1= Mo, 2= Tue, 3=Wed, 4=Thu, 5=Fri
  • Day_No_Work_3:
  • magic: the number the expert gives to the order to recognize it
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