DAX gap

This is a discussion on DAX gap within the Indices forums, part of the Markets category; Trading the gap on the DAX cash open has been a succesful strategy recently. Does anybody regularly trade this?...

Reply
 
LinkBack Thread Tools Search this Thread
Old Feb 16, 2010, 1:58pm   #1
Joined Aug 2009
DAX gap

Trading the gap on the DAX cash open has been a succesful strategy recently.

Does anybody regularly trade this?
Sunshine On Leith is offline   Reply With Quote
Old Feb 16, 2011, 11:40am   #2
Joined Feb 2008
Re: DAX gap

Quote:
Originally Posted by Sunshine On Leith View Post
Trading the gap on the DAX cash open has been a succesful strategy recently.

Does anybody regularly trade this?
Hi, I am really interested in this too.

I am been looking at daily OHLC (from yahoo finance) and the chance of fill using an EOD (end of day stop) is 71%.

I need to do further testing but my idea is to open a trade at the open to fade the gap. With the gap fill as the target and the stop to be 50% of the gap so I get 2:1 risk reward or up to 100% of gap 1:1.

Does anyone who trades this kindly have any thoughts to share? Am on the right track...?

Many thanks
pimplico is offline   Reply With Quote
Old Feb 16, 2011, 11:47am   #3
Joined Jul 2004
Re: DAX gap

Quote:
Originally Posted by pimplico View Post
hi, i am really interested in this too.

I am been looking at daily ohlc (from yahoo finance) and the chance of fill using an eod (end of day stop) is 71%.


Many thanks

fdax?
kalott is offline   Reply With Quote
Old Feb 16, 2011, 11:51am   #4
Joined Feb 2008
Re: DAX gap

Quote:
Originally Posted by kalott View Post
fdax?
Sorry, yes for the Dax cash.
pimplico is offline   Reply With Quote
Old Feb 16, 2011, 1:13pm   #5
 
Hoggums's Avatar
Joined Jan 2006
Re: DAX gap

How are you buying the cash dax? You can't do this via Spread betting because the price will be based on the cash future, not the cash itself - so there is never any gap to trade.
__________________
Hoggums

-----------------------------------------------------------------------------
Outside of a dog, a book is a man's best friend,
inside of a dog, it's too dark to read. -- G Marx.
Hoggums is offline   Reply With Quote
Old Feb 16, 2011, 1:26pm   #6
Joined Feb 2008
Re: DAX gap

Quote:
Originally Posted by Hoggums View Post
How are you buying the cash dax? You can't do this via Spread betting because the price will be based on the cash future, not the cash itself - so there is never any gap to trade.
Sorry if not clear. I'm comparing the closing price of the Dax to the opening price the next day. There may not appear a gap on the graph because a price is being quoted by the spreadbetting company 24hrs but the spread will really wide while the underlying market it not open.
pimplico is offline   Reply With Quote
Old Feb 16, 2011, 1:52pm   #7
 
Hoggums's Avatar
Joined Jan 2006
Re: DAX gap

Quote:
Originally Posted by pimplico View Post
Sorry if not clear. I'm comparing the closing price of the Dax to the opening price the next day. There may not appear a gap on the graph because a price is being quoted by the spreadbetting company 24hrs but the spread will really wide while the underlying market it not open.
That maybe so - but you won't be able to get anyone to bid/offer at yesterdays close to you if the futures are way off. That would be free money and we'd all be millionaires.
__________________
Hoggums

-----------------------------------------------------------------------------
Outside of a dog, a book is a man's best friend,
inside of a dog, it's too dark to read. -- G Marx.
Hoggums is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Crash dax data tradestation 2000i dax future pankebo Trading Software 0 Nov 14, 2007 6:21pm
Gap Down Report ChartMan Technical Analysis 0 Apr 4, 2001 7:40pm
Gap up report ChartMan Technical Analysis 0 Apr 4, 2001 7:40pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)