OPG- Open Price Gaps strategy – stocks

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10/29/2019 at 1:49 AM #111484 quote
julienbat
Participant

Junior
Hi,

I’m using the Open Price Gap strategy manually on Tradingview (I know) and I have nice returns with it.

Basically I screen for stocks that open with a gap up or down between 2% and 8% or -8% and -2%, higher than $1 with a 30 days average volume of 50k minimum, no news and no volume at the open! I avoid miners and healthcare. It’s pretty easy to scan for these stock using filters on TradingView.

My goal is then to trade with a stop loss around a support, resistance, round number (this is probably the biggest challenge to automatized that strategy) and my take profit strategy is when the price reach 80% of the gap and i’m out before mid-day. My risk per trade is 0.25%-0.5% of my capital

Here the plan:

TRADING PLAN for OPG (open price gap):

Style: Day trading

Type: Mean reverting

Holding period: Closing before mid-day EST

Stock selection: No healthcare and mining, >1$, over 50k volume the last 30 days

Entry signal: Gaping in a specific range: 2% to 8%

Enter:
1. Gap on no news!
2. No volume at the open
3. entry style no scale, 1 entry with a limit order
Take profit signal: 80% of the gap

Stop loss: above round numbers 0.25%-0.5% risk/trade

look where my taking profit is and put my stop loss where I find the resistance, far enough

bailout indicator : If news again your trade, get

I can see how to screen on PRT for these stocks but then I was wandering if it’s possible to implement an automatic strategy for that.

I have attached the results of this morning to show you how the gaps get filled very well, both long and short.

Thanks for reading me,

Warm regards

j.

Screen-Shot-2019-10-28-at-9.49.25-AM.png Screen-Shot-2019-10-28-at-10.54.59-AM.png
10/30/2019 at 1:40 PM #111661 quote

Nicolas
Keymaster

Master

It could be done for individual stock but there is no way to automate a strategy to scan and trade multiple ones at the same time. Each strategy will trade an individual stock that you must have selected before you can launch it, so you will still have to scan for the stocks to be traded by using your screener.

julienbat thanked this post

10/31/2019 at 2:33 AM #111725 quote

julienbat
Participant

Junior

Hey Nicolas,

Thank you for your answer.

So I will have to find another way to do this strategy. I can see every morning of the gaps get filled very quickly, probably by some algos

warm regards

j.

04/18/2020 at 4:38 PM #126759 quote

marks_mb
Participant

New

Hi Julienbat,
are you still using the OPG strategy? I’m looking to start to use it (btw looking on your TRADING PLAN, I think we learned it from the same instructor on Udemy).
I’m also looking for a way to automate the strategy, I’m going to do some research about it and if I have some news I will be happy to help you.
How is it going with the strategy so far? How many trades are you able to do per day without the automation? Which is the average winning rate per trade so far?
I think this strategy if done in the correct way can have above 60/70% of the average winning time.

Cheers,
Marco

04/19/2020 at 10:25 AM #126845 quote

julienbat
Participant

Junior

Hi Marco,

Yes definitely from Udemy!

I don’t use it at all, I had a hard time to apply it on TradingView.

I would definitely love to have your feedback if you find a way to do it automatically !

Cheers and take care

Julien

04/19/2020 at 11:04 AM #126854 quote

GraHal
Participant

Master

julienbat wrote:

if you find a way to do it automatically

when you have screened for the gap stocks then you could search for the ticker and start an Auto-System one for each ticker … after screening then to start a System in ProOrder would take 5 seconds ish so you could start 10 or so Systems in 1 minute?

With the PRT Screener if you click on a result after screening then a chart for that ticker opens anyway so you would not even have to search for the ticker. So then click on a System, click to start System in ProOrder … 4 clicks, 4 seconds!! 🙂

Your Auto-System would have an immediate open trade / entry and your exit criteria built in … 1 second Timeframe so within 5 seconds ish of screening you could have an open trade?

04/20/2020 at 1:21 AM #126981 quote

julienbat
Participant

Junior

Wow Marco, that looks amazing ! keep me posting please !

05/17/2022 at 10:39 PM #193352 quote

Takunda
Participant

New

Hi Julian and Marco, you guys are on some great work there, I am about to venture into OPG and if any of you guys have an way you can direct me on how to start I will truly appriciate it. a reference of the video / instructor on Udemy will be a great start.
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