How far can you get with just one trade a day?

BE Trader

Junior member

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...

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Screening Criteria
  • 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
Enter Criteria (when to open a position)
  • Stock price is above EMA 9
  • Stock is going up and EMA 9 is going
Exit Criteria(when to close a position)
  • 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 year​

Profit $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.
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Disclaimer: all calculations made using BreakingEquity