Portfolio Trader – Week 43 / 2011
October 23, 2011 By 2 Comments
Portfolio Trader – Week 42 / 2011
October 16, 2011 By Leave a Comment
These are the trades I’m going to take for the coming week. In case you consider mirroring my trades make sure you do your own homework upfront in order to match your personal risk profile (no investment advice).
- Frank
Strategy review: Fading the UP-GAP
May 16, 2011 By 28 Comments
With this post I want to share a simple GAP fading strategy. In my never ending desire to find complementary strategies to my existing portfolio of strategies. I looked into GAP fading. What’s GAP fading: Assuming a stock or ETF opens higher than yesterday’s close, you got a GAP. To fade a GAP you essentially take a mean-reversion trade. So one is expecting that the market is likely to trade lower, hence trying to fill the GAP.
Why GAP fadding? My existing strategies tend to trade between 2-10 days. Typically GAP fading strategies are shorter. Furthermore I decided to look into fading an UP-GAP only, hence taking on a short trade. Because my existing strategies take on more longs than shorts.
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