Opening Gap Strategy Makes $103 Profit In Four Minutes Trading Dow Futures

Our automated trading strategy, which fades the opening gap, made $103 in four minutes just now as the small opening gap on the Dow Futures (YM) rapidly closed. The $103 is actual profit after commission and slippage have been deducted.

mnGapAutotrader monitors the size of the opening gap and will only trade if the risk:reward ratio is sufficiently in our favour. As the gap on the S&P 500 (ES) and Nasdaq (NQ) was below the risk:reward ratio, the system did not make any trades with those instruments today.

The opening gap with YM was just above the systems risk:reward threshold so three contracts were automatically traded short with rapid profits made as the gap closed before rebounding of yesterdays closing price.

You can see the live opening gap trading results for June by following this link.

The chart below shows the automated trade today. Profit targets were set according to our conservative trading strategy, which paid off today with the final profit target set at 100% gap fill.

Click to enlarge