Identifying Gaps

[demo166130]

Hello,

I use the strategy builder to create strategies and would like to explore gap based strategies. However, I cant work out whether it is actually possible to identify these in the builder. Any pointers would be appreciated.

Thanks

[NinjaTrader_Jim]

Hello demo166130,

Thanks for your post.

The first step when creating a strategy will involve defining your goal in logical terms that you can then create with conditions and actions in the Strategy Builder.

A quick Google search describing what a gap based strategy is points to checking if open the first bar of a session is higher than a the high of the previous day. (Full Gap Up) For such conditions, you could use the PriorDayOHLC indicator to check the previous days Open High Low and Close, and you could check the Open High Low and Close while checking Misc > First bar of session to check the Open High Low and Close on the opening bar for that session.

I'll include some links for setting up various conditions and actions in the Strategy Builder which can provide further direction for using this tool.

Conditions Tips - https://ninjatrader.com/support/help...on_builder.htm

Actions Tips - https://ninjatrader.com/support/help...us/actions.htm

Please let us know if you have any additional questions.

[demo166130]

Hi,

I tried to use the logic you suggested but clearly haven't put it together correctly. Would be greatful if you were able to offer a few more pointers outlining exactly how to identify the gaps.

[NinjaTrader_Jim]

Hello demo166130,

Providing educational information for detecting gaps and created strategies based on these concepts leans closer into trading advise that is not something that we are professionally qualified to give. The input I posted in post #2 was intended to describe what a gap is based off of a publicly available study. I should be clear that this input was only intended to describe how a hypothetical condition could be created in NinjaScript.

A community member of the forums may be able to share some further advice for gap based strategies. We could also have a representative of our EcoSystem reach out with information on NinjaScripts who can write a strategy for you and educators who are qualified to provide trading advice.

Let me know if you would like me to have an EcoSystem representative reach out.