The Gap did fill and the system had a win of 23.5 points but due to the current system drawdown, the Trade Account did not participate as per rules discussed under the summary section of the email sent out to subscribers.
Below is what was sent to subscribers before the open.
Gap Type & Size – trade a Gap Up today and Short between 11612.5 up to 11620.5
Target – will be 11592.5
Stop – will be 47 points from 9:00 open
Position Size – B
System Equity Curve
Strategy # 7
Filters used : Benchmark parameters are not in place, pre-market candle is heading down and towards Gap fill
IF the 9:00 open is a small Gap up the target is Gap fill. Stats : 10 previous occurrences using these filter parameters had a WR% 100
- January has historically been favourable shorts.
- Tomorrow is options & futures expirations Friday and this month is not one of the ‘big’ contract expiration months of March, June, September or December (see below Study #1). Note : the equity curve has struggled recently.
- Today is the ECB rate release and this has been poor shorts (see below Study #2).
- There is a prior period unfilled Gap @ 11620.5 and 11641 and traders may try and take out these price levels before a possible reversal to the downside.
The Trade Account will not take this system generated trade today.
As per new rules, yesterday did not have one of either (i) ATR volatility expansion and an unfilled Gap Or (ii) Gap filled in conjunction with both ATR and volume expansion over the respective long term average.
The key with today’s setup is the futures pre-market candle heading down and towards Gap fill at the 9:00 open.
If the 9:00 open is < 11612.5 the system will wait up to 10 minutes with a limit short order @ 11612.5 If the Gap fills or time = 9:10 the trade is cancelled.
Taking all Gap up shorts when tomorrow is options & futures expirations Friday and this month is not one of the ‘big’ contract expiration months of March, June, September or December. Target is Gap fill (WR% 71).
Taking all Gap up shorts when today is the ECB rate release and yesterday finished as an up day. Target is Gap fill (WR% 63).