Sunshine On Leith
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Trading the gap on the DAX cash open has been a succesful strategy recently.
Does anybody regularly trade this?
Does anybody regularly trade this?
DAX gap
- Thread starter Sunshine On Leith
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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
Sorry, yes for the Dax cash.
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.
Hoggums
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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, I don't think I am explaining it clearly, of course you're right on that point but that's not what I mean, what I am talking about is the the gap between the day before's close and the next day's open. I think I'd better leave this to Sunshine to explain as I am not explaining clearly enough and for that I do apologise. I'll leave it here. Best.
have a look at the ''dax breakfast club''
they do this successfully.
I'm wondering whether trading dax (dbf) out of hours can use the 1630 close as a magnet/target on the swing trend.
Looks like high probability trades when you're swinging back. Kind of like a pivot point.
Has anyone else noticed this and checked the statistical probability of it?
they do this successfully.
I'm wondering whether trading dax (dbf) out of hours can use the 1630 close as a magnet/target on the swing trend.
Looks like high probability trades when you're swinging back. Kind of like a pivot point.
Has anyone else noticed this and checked the statistical probability of it?
BigBootyBabe
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He doesn't mean an ''actual gap'' on the chart (like an empty space drop down),
he basically means trading in the direction of hoping for a reversal of what the Dax did during the overnight asian session.
For example if Dax cash closes at 5pm UK time at 7,830,
during USA and Asian overnight session it rises to 7,860 at 6:59am,
next day at 7am when it 'officially' reopens it will be at 7,860.
And so he would then short-sell it with a target of 7,830.
he basically means trading in the direction of hoping for a reversal of what the Dax did during the overnight asian session.
For example if Dax cash closes at 5pm UK time at 7,830,
during USA and Asian overnight session it rises to 7,860 at 6:59am,
next day at 7am when it 'officially' reopens it will be at 7,860.
And so he would then short-sell it with a target of 7,830.
