Monday August 1st Weekend FX gaps, page-5

Hi pt

The weekly gap table and the data I have put together myself. All the data is taken manually from the charts I use, because my charting software doesn't offer data downloads.

At the moment I'm using a time based stoploss - for the 6 out of 100 gaps which haven't closed in 5 days (94% close within 5 days) I make a decision about the direction and close if it looks like its still moving away or keep it open if it looks like it will close within another 5 days. I am relying on the statistics for assurance that the profits from the 94 trades closed within 5 days cumulatively cover the losses from the 6% of trades I have to close after 5 days. In theory since the data suggests that actually all the gaps eventually close the other approach is simply to leave them open until they do close (even if its a year or more). I haven't done the sums yet on the carrying cost of holding a position open that long. This is why I collecting so much data, so I can have more assurance of the probabilities. So far I'm well in front.

As to other info, I don't know of anything out there which covers these types of gaps - I learnt about it here on this forum several years ago when there were several traders here who actively worked these gaps each Monday, but they've since moved on. Since I've re-started doing these trades on a systematic basis I figured I'd back to this forum and cover what I do since this is where I got the idea in the first place.

Hope that helps. If you have any more questions don't hesitate to ask.

Cheers, Sharks.