There is one simple rule that improves the backtest for gap continuation setups into more high-probability opportunities.
Metrics that improve include:
- Win Rate
- Average Trade Profit
- Return over Drawdown
We reveal the rule in the video and show the statics in the backtest as well as the rationale.
This approach highlights the benefits of a robust trading strategy and sound risk management in day trading.
The Gap Continuation 2020 is a part of the Two System Portfolio NQ and was the strategy used on this backtest.
Gap Continuation strategies are also discussed in our Algorithmic Trading Systems Course with open code for Easylanguage, Tradestation, and Multicharts.