gap openings strategy

Can someone help me by providing strategies for gap up and gap down?

gap up- if the high of the 1st 15/30 min is taken out- then buy with stop loss of day's low.
and vice versa.
gap dn- if the 15/30 min low is broken, short with the day's high as stop loss.

these are just the basics.

I did make a small study of the gaps and tried to trade them. But ended up with the result the gaps are very very random in nature. The only thing I can tell you is that 2 out of 3 gaps will close the same day. But cannot say which days. I was not able to find a sustainable strategy to trade the gaps though it is hugely tempting to think we can find some non-randomness within the overall randomness. Here is what I tried and gave up.

http://www.traderji.com/futures/35101-nifty-trading-opening-gap.html

Perhaps someone else has found a successful way to trade the gaps.

Rajesh

Just curious. Do you trade this strategy and make money. Is there a back tested result. I tested this for 2009 on NF and did not find it successful. Perhaps you can share your results.

Hi,
I haven't tested for NF, but it works well for liquid stocks.
This is just the basics, to know that the stock trend is up/dn on the particular day, if the stock breaks after gap up/dn.

opening hour breake-out strategy gives good returns. but the tricky thing is money managment issues. stoploss could be opposite side (hi/lo), but TP is subjective. this is where the main problem lies.

I had a look at holding till SL hit or EOD. SL being the opening H/L. It did not really pan out. Perhaps scaling out once in profits may be a better deal. In Intraday, my feeling is that keep scaling out at 20 point move and shifting SL to BE may work better.

this has to be with fixed SL, TP

SL is H/L , TP should be some fixed value (x points or % of the breake out bar height ...)

most of times TSL , takes out profits on hand. i am always comfortable with fixed TP

Take a look at TATAMOTO chart for last 1 month. everyday in profit... but need to know when to take out profits

today TATAMOTO gave good profit. but again when to take profit is subjective. entry 683.7 and closed at 690

we need a good exit startegy for this. entry is always good