Forex Strategy «GAP» — is a multi-currency, that is suitable to trade any currency pair, the recommended interval — M5-M15 (for clarity)
I 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 trade.
And so, on the schedule for the chosen currency pair establishes subsidiary forex indicator: i-GAP. This indicator to determine the presence and size of gap, opening the market, and also indicates the direction in which you want to open trade. Green up arrow indicates the opening of the transaction to Buy, well, a red arrow pointing down, suggests that it is necessary to open the transaction Sell.
Now a few words about the settings indicator forex i-GAP: the tab «Inputs» parameter set Size GAP is 15.
1) For 5 minutes, or a little earlier, before the market opens on Monday, launching a trading platform MetaTrader 4. After the opening of the market there, looking at what pairs formed Gap (open price) and conclude a deal of overlap in the direction of a gap (in the direction of the gap price). Will only enter into transactions on the currency pairs, which was formed more than 15 items of GAP (4-digit brokers, such Instaforex, for 5-digit brokers, such as Alpari, this option will be equal to 150 points). And determine the minimum gap formed it will help forex indicator — i-GAP.
2) An order to profit Take-Profit set at a distance less than the value gap by 2-5 points, that is, the price should not reach the high or low of the last candle close on Friday (more clearly see the examples presented in the charts)
3) Stop-Loss to set a fixed size — 300-350 points (4-digit broker).
Stop-loss is best placed on important price levels, such as 1.3500 or round prices, such as 1.2360, but no more than 350 points!
4) money management, when trading on the above strategy, proposed by the author of forex strategy — Members kmc:
Recommended risk — 5% of the size of the deposit, in rare cases — up to 10%, but no more!
If you still decide to make a deal with the risk of 10%, we do not trade on one currency pair, it is better if it will be 2-3 currency pairs.
An example of a deal on a real trading account on the currency pair EURJPY:
Opening date of the transaction — Monday 15 June 2012, the currency pair EURJPY, the market opened with a gap, the size of 106 points. Forex Indicator i-GAP pointed out the direction for a deal to sell (red arrow). Therefore open bargain on sale at a price of 100.74 (price is different from the opening price gap, since before the opening of the transaction on EURJPY, author of the strategy provides a transaction to another currency pair and so the price went up a little higher), Take-Profit was set at level, not reaching the maximum number of points to spark the market close on Friday. A safety order Stop-Loss was set at the level of 104.00. Finally Sledkov was closed with profit 100 points!
An example of a deal to market opening with a gap on the currency pair USDCHF:
Trade was in the Monday, June 15, 2012 for the currency pair USDCHF. The market opened with a gap of 75 points. Established Forex Indicator i-GAP pointed out the direction for the conclusion of the bargain (the green arrow, which is pointing up), so opening the deal at the price of 0.9428 Buy. Order profit Take-Profit was set at the level at several points below the candle closing Friday. A safety order Stop-Loss was set at the level of 0.9090. In the end, the deal was closed with a profit of 50 points +
5) Statistics from the real account on the above strategy forex «Gap» from 1 February to 19 June 2012
Name of the currency pair / profit in points for the 4-digit broker:
EURUSD — +430 points
AUDUSD — +340 points
EURJPY — +287 points
NZDUSD — +188 points
GBPUSD — +94 points
USDCHF — +94 points
USDJPY — +65 points
GBPJPY — +15 points
Total closed profit — 1,513 points!
This trading system, you can download:
Template MetaTrader 4 — gap.tpl (archive)
Indicator i-GAP — i-GAP.mq4 (archive)
