One of the site’s visitors asked me about my testing results of the weekly Forex gap strategy and which pairs are best suited for such trading. As a reply I’ve sent two MetaTrader “expert advisors” that I had used for testing. Now I’ve decided to share these scripts with everyone else, because they can be really useful to all who are interested in gaps, and, with some basic coding skills, they can be transformed into real expert advisors to trade weekly Forex gaps.
The first such tool is my_Gapper2.mq4; it is a more real expert advisor in terms that it at least opens and closes positions. It opens position at week start and closes every Friday (at the beginning of the day) — it’s a very rough gap trading simulation. You can run the EA in Strategy Tester on D1 timeframe too see the results. Other from the obvious StopLoss, TakeProfit, Lots and Slippage parameters it also has MinGap input parameter, which is the minim size of gap denominated in currency pair’s spreads to consider for position opening.
my_Gapper3.mq4 is somewhat different. It doesn’t trade at all. Instead, it records the price rate differences between the week start, when the gap was detected, and the ends of all weekdays. That way, as a result, we have here the potential gains for 10 different cases: close on 5 different weekdays for going in the same direction as the gap, and close on 5 different weekdays for going in the opposite direction. The totals are produced to the Journal tab of the MT4 Strategy Tester. Run this “EA” on daily timeframe (or lower). Its only input parameter (MinGap) behaves similarly to that of the my_Gapper2.mq4.
You can quite easily alter these EAs to make them trade more correctly and then they could be used on live accounts to trade the Forex gap strategy. But it’s up to you.
If you have suggestion or questions regarding these tools for weekly gap strategy testing, please feel free to submit them using the form below.
