The Gateway Algorithm

The Gateway Algorithm is simple. An initial gap trade at the open on one or all four indexes is a straightforward yet effective strategy that capitalizes on price discrepancies resulting from market activity during non-trading hours. The concept revolves around the ‘gap’ that occurs when the market opens at a price significantly different from its previous day’s close. This disparity creates an exploitable opportunity for traders.The process begins with analyzing the closing price of the S&P 500 Index (MES) from the previous trading day.  When the market reopens, if the opening price deviates substantially from the prior close, it creates a visible gap on the price chart. The essence of the strategy lies in identifying and acting upon this gap. SUBSCRIPTION TYPE:  Monthly