YM Gap Down Back testing

R

Ripley

On days when YM gapped down 50 pts or more, what are the chances of it closing +50 pts up for the day?

From my experience, I bet it is greater than 75%, but it would be great if I could put a number on that.

I don't have the data or a back testing program and any help would be great.
 
Unfortunately, your experience does not reflect the actual data. I have tested many different Gap strategies and none are consistent. Not to say there aren't profitable ways to trade gaps. I just have not found a mechanical approach.

fan27
 
are you kidding me?

London bombings: Gapped down -70 pts, went up +140 pts.
Hurricane: Gapped down around -60 pts, went up +110 pts.


I found a way to regularly lose money when it gaps down. All you have to do is just short it. I know there has to a different way of doing it.
 
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