A new an interesting strategy for indexes

Discussion in 'Strategy Development' started by Roman Candle, Apr 30, 2009.

  1. Ok trader’s here is how the game is played. Guess the direction of the opening gap and make a profit. Guess wrong and try again the next day. Your odds are 50-50.
  2. More gaps early April
  3. 1) Your "odds" can be 100% correct if you merely follow the overnight session.
    2) How much do you expect to make when you're correct?
    3) How much do you expect to lose when you're wrong?
  4. Place your bets
  5. Gap down!!
  6. On pace for a 100 point DIA gap up. I have seen this pattern before this time of year.

    Gap open, then sell down through out the day. It cost less to move the futures higher over night. Then the specialists can gap open there stocks for a free ride.
  7. cvds16


    new and interesting ? :confused:
    where have you been all these years ...
  8. I have not seen volume this light in the index futures in along time.

    It's stunning how few sellers there are. YM floated up 100 points on 2000 contrats overnight. it's 8am cst and we sit at 4.8k contracts traded.

    I have seen this picture before. Float higher every single night with nothing in the way but a few contracts on the offer.

  9. Most won't set foot near the index futures overnight, they have been brain washed to closing out all positions and being flat over night. Brokers love these guys because it keeps the commissions coming.

    I have never seen anyone mention an actual strategy for this type of trading. This truly is easy money. Buy the cash close and wake up and smell the profits.

    Last night I was watching the futures closely and noticed as soon as the electronic exchanges for stocks close in the evening @ 7:00pm cst, The futures started rising.
  10. Aisone


    Odds are less than 50/50, since it can gap up, gap down, and not gap at all (relatively), which happens more often than not and will get costly in commissions if doing it everyday.

    I like the simplicity of it all tho. ;)
    #10     May 5, 2009