ActiveTrader 2005-11 | Gap Buy by Cone

System Concept/Rules:
This system was inspired by the "Filling in the Gap Picture" article in the November 2005 issue. It buys on down gaps of 5% or more, setting a profit target equal to the low of the pre-gap bar.  After 6 days, a time-based exit is taken at market.

Strategy Notes!

  • This version of the Strategy employs a WealthScript function new to Version 6.1, GetSessionOpen, which allows the script to generate Alerts in "near" real-time by running it just after the open of the session.  On it's first call, GetSessionOpen accesses and caches the opening price for all symbols in the DataSet even if the script is run on just one symbol initially. You can expect a lengthy delay that depends on the static Provider's ability to access and cache the opening prices for all symbols in the current DataSet. Processing for all subsequent symbols in the DataSet is very quick since the function needs only to access the opening price from the cache.
  • The original system only considered a profit target exit on the entry bar.   This version keeps the profit target "live" throughout the timeout period.  It's marked "optional" in the script, so you may remove it if desired.  In testing the worst-case results from 2000 to 2010 on the Nasdaq 100, leaving the profit target improved performance considerably.
Author: Cone
Category: Gaps
Creation Date: 12/30/2010
Licence: Freeware
Availability: Globally
Instructions for Script Download
  1. In Wealth-Lab client software, open the Strategy Explorer (Ctrl+O)
  2. Click the "Download..." button
  3. Click "Begin Download"
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