Everyone wants a trading strategy that allows you you to make 1 trade per day but still can beat the market. Here are I explore how you could make one.I decided not to reinvent the wheel and just took highly popularized Gap & Go strategy. The gap & go strategy is looking for stocks gap up from the previous days close price. The goal is to identify a gap and then follow it. I’m using biotech stocks as they tend to have higher volatility comparing to other industries. Below is is the ideal setup I'm looking for...
- Biotech Equities (I’m using iShares Biotechnology ETF $IBB as a list)
- Up in the morning 3% or more
- Are above pre-market high and yesterday’s high
- Stock price is above EMA 9
- Stock is going up and EMA 9 is going
- Price crosses below EMA 9 and stays there for 3 bars
- End of the same day
- Or by a trailing stop loss of 1.0%
- $10,000 trading capital
- Do not trade early close days
- Only one trade per day
- If no equities meet the screening or entry criteria, do not trade
The Results: +58% gain over one yearProfit $5,801.4 | Wins 48 | Losses 49
Looks pretty decent but I think that’s just the beginning as I’m going to improve it even further with maybe looking at overall market conditions like SPY behavior and alike or news.
Disclaimer: all calculations made using BreakingEquity