Forex Strategy «Return to GAP»

Forex Strategy «Return to GAP» — a rather simple forex strategy that can be applied to any currency pair, which opens with a gap on Monday - after the market close on Friday, this strategy is quite stable, although the entries into the market are not carried out very often (a report 2007 to 2010, see the end of this strategy forex).

To trade on the forex strategy, we do not need lights or patterns for Metatrader 4 because indicator that signals generated at the opening position will price itself.

The strategy forex «Return to GAP» is very simple:

1) We are waiting for the opening of the forex market on Monday — we will only sell if the market opens with a gap!

2) Check the value of the GAP, whether it suits the following conditions (within the following limits):

EURUSD — 20-100 points

GBPUSD — 5-40 points

USDCHF — 5-90 points

USDJPY — 10-200 points

For other currency pairs are the parameters must be chosen (and the easiest way to do it with Expert Advisor GAP)!

3) if the value gap is in the range of data, then open the three trading positions in the direction of overlap (closing) gap.

  • If the gap down — open 3 deals for the purchase.
  • If the gap up — open 3 deals for sale.

Example see in the picture:

Forex Strategy "Return to GEPe"

4) Teyk-profit 1-th order set on the market closing price on Friday!

— Profit 2-th order is equal to 2-m Take Profit-s 1-th order

— Profit third order is set by a fixed amount, equal to 200-300 items (depending on the traded currency pair).

When closing a second order for take-profit, 2-nd and 3 rd order must be changed to breakeven!

5) Stop-loss is set (and required!) At a fixed value, which is approximately 300-400 items (depending on the chosen currency pair).

And although the magnitude of the stop-loss is not small, but statistically, over 3 years trading on the forex strategy, stop-loss on eurusd works only 2 times, gbrusd — 3 times, on usdchf — 2 times and usdjpy — 2 times!

Optionally, you can reduce this amount of stop-loss, but then the probability of closure orders by the stop-loss increase.

So I recommend not to risk too much when trading this strategy because the probability of triggering stop-loss, though small, but still there!

6) As soon as the third order is transferred to breakeven, its translation into a trailing stop is equal to 50-100 points and wait until it closes on positive stop loss (stop-trade), or take-profit.

By this strategy, forex trading you can buy

Expert Advisor Forex GAP

  • report on the trade on the currency pair EURUSD for the periodfrom 2007 to 2010:

report advisor GAP - EURUSD

report on the trade on the currency pair GBPUSD over the periodfrom 2007 to 2010:

Report advisor GAP - GBPUSD

report on trafficking of USDCHF for the period from 2007 to 2010:

Report advisor GAP - USDCHF

report on trafficking in USDJPY currency pair over the period from2007 to 2010:

Report advisor GAP - USDJPY

Download: Report of the expert advisor GAP for the period 2007 — 2010!

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Comments (13) on "Forex Strategy «Return to GAP»"

  1. […] week, the currency pair EURUSD opened with a small gap on almost brown line of the channel, which I wrote last forex forecast. After that the price gap is […]

  2. […] breaks a little gap blue trend line up and closes above it hour candle, then there is the same retest the trend line, […]

  3. […] without rewriting it, fighting off the Blue Line channel + red trend line and still rises up and closes the gap! After that, the price goes down to the level of 61.8% Fibonacci of the last move up on Monday, […]

  4. […] a gap down almost on the border of the gray channel, there is little clear up, but the price does not cover the gap, and there is a breakdown of the channel gray and blue trend line. Then the price bounces from a […]

  5. […] of the background channel and then breaks it, and not only breaks even and the gray line + channel closes gap on February 20, 2012. It then retest the gray line of the channel and the price falls to a small […]

  6. […] The immediate objective for purchases — retest the bottom line of the triangle and possible closing of the gap + brown line rising trend. With sales — retest green channel punched and possibly purple trend […]

  7. […] retest the bottom line of the triangle + close gap on May 7, 2012 — Sale of […]

  8. […] Of course the best option — is to wait for the market opens on Monday and if the opening is a gap or a sudden movement to one side — the deal makes no sense to wait. And if after all the market […]

  9. […] the market opens on Monday, there is no sudden movements and the week is opened without the big gaps, we can consider the option of selling on the green trend […]

  10. […] to sell, unless the market is not going away sharply after opening and can not be opened with a gap in one of the parties. To purchase this level should be tested from top to bottom after breaking up […]

  11. […] 1) Price on Friday went to the brown line of the channel + 61.8% Fibonacci correction of the movement, with a maximum of 17 September 2012. This level is still level prices rebound or stop at a minimum, so after the market opens on Monday, it is quite possible backlash, if there is no market opening with a gap. […]

  12. […] The purple trend line — the approach from the bottom and hang — move down, it is likely, if not gaps at the opening of the market, as it is the third approach prices and at least a temporary rebound […]

  13. […] wish to warn that the above trading system with tests on real account is similar to the strategy “Return to the Gap”, but it used other options to enter the market and also adds an indicator to help in […]