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

[BE Trader]

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...

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%

Conditions

• $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.

Disclaimer: all calculations made using BreakingEquity

 

[Farm Yard Forex]

Nice article. Of course it's possible if your risk management is on point and your discipline is good.

 

[WalletInvestor]

Interesting approach! Did you automate your trades, or did you do them manually?

 

[BE Trader]

Interesting approach! Did you automate your trades, or did you do them manually?

100% Automated - manual would be too much for me.

 

[Jungletrader]

Very nice I really like your take on the Gap and Go strategy.
Looking forward to seeing your progress