Daily First Fair Value Gap Limit-Entry Strategy After 10 AM New York

Summary

This strategy allows one setup per New York trading day. It records the 10:00 open, then selects the first confirmed three-candle fair value gap whose middle candle occurs at or after the setup start. For a bullish gap it places a limit order at the gap’s upper boundary; for a bearish gap it uses the lower boundary. The stop is placed at the gap-generating candle’s opposite extreme, and the target tracks the session’s directional extreme formed before the entry touch. The code updates the target while the order waits and uses a bracket exit for stop and target management.

Inputs control the session hours, direction, size, and Friday/weekend protection; pending orders are canceled at the session end, and open positions can be closed then as well. The script includes logic to detect an apparently unfilled touch and flag a possible margin issue. These are implementation rules rather than evidence of profitability: the document supplies no backtest results or market-specific validation, and its outcomes depend on chart timeframe, execution assumptions, and configured costs and margin.

Key ideas

• The setup uses the first confirmed eligible three-candle fair value gap after the chosen New York start time.
• A limit entry is placed at the gap boundary, with a stop at the generator candle’s opposite extreme.
• The profit target follows the session extreme reached before the entry touch and is updated while the order is pending.
• The strategy restricts setups to one per day and includes session-end and Friday/weekend controls.
• No performance evidence is provided, so the rules alone do not establish profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.