SAFeTRADE
649 posts
msg #83546
- Ignore SAFeTRADE |
11/27/2009 3:23:04 PM
So when we say Fade the Gap as it relates to MTC stocks it means:
If the stock gaps up at the open we wait for a short at the open minus 10 cents
and
If the stock gaps down at the open we wait for a long at the open plus 10 cents.
Because the stock can continue in an upward move in a gap up
and
because the stock can continue in a downward move in a gap down.
Thanks Kevin.
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Kevin_in_GA
4,599 posts
msg #83547
- Ignore Kevin_in_GA
modified |
11/27/2009 3:56:44 PM
Don't thank me - it's TRO's system.
Just remember to be careful on BIG gaps, where the open is beyond the R2 or S2 levels.
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stratiG
147 posts
msg #83557
- Ignore stratiG |
11/28/2009 10:06:39 AM
SAFeTRADE,
The 100 day Fade the Gap statistics filter on the first page of the fade the gap forum is much better than the
one you posted. There is also a 30 day filter as well that is very good.
GS
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chetron
2,817 posts
msg #83558
- Ignore chetron |
11/28/2009 10:22:59 AM
stratiG, WHY DO YOU THINK THAT.
REMEMBER, NO FILTER IS NECESSARILY BETTER THAN ANY OTHER AS LONG AS MONEY IS BEING MADE WITH THEM.
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stratiG
147 posts
msg #83562
- Ignore stratiG |
11/28/2009 11:57:12 AM
chetron
- Ignore chetron 11/28/2009 10:22:59 AM
stratiG, WHY DO YOU THINK THAT.
REMEMBER, NO FILTER IS NECESSARILY BETTER THAN ANY OTHER AS LONG AS MONEY IS BEING MADE WITH THEM.
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You are right. I should choose my words more carefully.
SAFeTRADE
You might find the filters in the fad the gap forum useful. The filters in that forum have both statistics for gap ups and downs in the same filter. I use both the 100 day and 30 day. Have fun.
GS
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SAFeTRADE
649 posts
msg #83563
- Ignore SAFeTRADE |
11/28/2009 12:12:59 PM
It is not a trading filter. I was using it as a tool to better understand the relation between gaps
and the MTC stocks. From what I understood about fading gaps, it was done at the open,
as in immediately. I wanted to see whether a stock gapped up or down meant it would still
cross the open + 50 cent or open - 50 cent. I now under stand fades as related to MTC
stocks as being different as in waiting for the cross. Hence the example of BIDU. Even though
it gapped up at the open 50 times, it still achieved the 50 cent threshold 98 out of 100 times.
Fading that stock immediately would have killed me. I took that filter a little further and
discovered that statistically speaking the bias was even better and gave more of an edge
when a stock gapped up or down to make the +or- 50 cents. As I said earlier it is not a trading
filter so much as a different lense to see the results.
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miketranz
978 posts
msg #83565
- Ignore miketranz |
11/28/2009 2:26:42 PM
Avery,I read some of the material from Zweig's book from the link you provided.What an eye opener.I'm starting to realize how true it is about probabilities.My big question to you is,what trading method has an 80% or better chance of success?
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stratiG
147 posts
msg #83571
- Ignore stratiG |
11/28/2009 8:28:54 PM
SAFeTRADE,
I should of read your earlier post closer. No harm was intended.
Just an idea---you can use the the 30 or 100 day gap filters, save the results to a watch list(s) and then run the watch list(s) through the MTC filter. And the reverse for the MTC stocks.
GS
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SAFeTRADE
649 posts
msg #83574
- Ignore SAFeTRADE |
11/28/2009 9:03:44 PM
None taken.
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chetron
2,817 posts
msg #83575
- Ignore chetron |
11/28/2009 9:11:52 PM
SAFeTRADE, as tro has mentioned, the gap doesn't have to close to make you money, just take the .50 if it is also a mtc equity, that is his edge.
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