EXAMPLE of Today's Gap Play
Gap Guy
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Notes: The above shows Otis' signal parameters for each zone BASED UPON WHERE THE E-MINI S&P 500 PRICE IS TRADING AT 9:25 AM ET. If price at decision time or the Open is within a signal range BUT within 1 point of the signal high or low price, then I will often reduce position size in half. On occasion, I will also reduce position size due to other identified signal risks e.g. seasonality for the market per Today's Gap Guide or for that specific signal.
"No trade" means that fading a gap in that zone is riskier than normal since it fails Otis' profit expectancy criteria. Red = Sell, Green = Buy. Yellow represents "discretionary" signals (buy or sell) that fail Otis' criteria for minimal sample size, but may be worth trading using a reduced position size. The time shown in the "stop" column is the time the position should be exited if it has not hit its target or been stopped by that time. If no "time stop" is noted then the position should be closed no later than 4:00 pm ET. U1-GW and U4-GW are "go with" trades (i.e. in the direction of the gap).
Win Rate = % of these signals from 1998-2006 that hit their target or could have been closed at end of day for a profit. This percentage is back-tested and therefore hypothetical. There is no assurance that future results will mirror past results. TRADE AT YOUR OWN RISK!