interday price difference

Discussion in 'Risk Management' started by Mononoke, May 6, 2010.

  1. Mononoke

    Mononoke

    Hi,

    I'm designing a trade system, and my entry criteria is a volatility breakout. my question is what to do if difference between yesterday's closing price and today's opening price is higher than my breakout criterion. Which is an exponential Average True Range of 5 days
     
  2. speres

    speres

    Then dont trade because chances are you've encountered a news event or a value area that backtesting cant account for....