Spectacular Results Trading The Opening Gap Today

mnGapAutotrader, our automated trading system that fades the opening gap with index futures, achieved spectacular results today.

With the large opening gaps in ES, NQ and YM closing during the morning trading session, fading the up gap caused by activity after hours was spectacularly profitable today.

Using the conservative trading approach, which set the final profit target at 100% of gap fill, and a wide stop paid dividends as the system avoided being stopped out by small retracements during the trade.

You can see the actual trade with ES in the image below.

Stoploss placement is crucial in allowing the trader room to absorb retracements without being stopped out, and yet maintain good risk reward ratios.

We used a four point stoploss (16 ticks) today with ES, which was 50% of the gap size – around eight points (32 ticks). This created a 1:2 risk:reward ratio and allowed the autotrader to achieve high profitability during the trade.

Click to enlarge