The bot lodged two more wins, and then took a week off. Last night was a pretty intense battle for a Sunday/Monday session, but the Bot handled it like a champ scoring an additional 10% original equity bringing the overall percentage to 40% in just over 2 months. Check out the image below... it was pretty sweet :-)
Basically, bullish sentiment (in this case strong Euro and weak Pound) over the weekend caused a nice gap in price. This is like a sneak attack in the currency market. Since currency is traded 24/5, the only time that you can sneak up on a currency and spike it without most people noticing is over the weekend. Generally, the market will look for "even ground", and recurse trying to close the gap. This is often caused by the long traders (Euro bulls) taking profits ( and weakening their currency) and the short traders (Pound bulls) pumping more money into the market (strengthening their positions) simultaneously. You can see this in bar 2 above. Notice how the peak of the candle almost perfectly stops at the dashed white line? Many of the sneak traders from over the weekend and a few early adopters probably had their take profits set at 0.7885, and their positions closing coupled with Pound bulls trying to continue the overall short trend of the pair created bar 3. Once the European market opened, and normal weekly activity resumed, we got a very nice 30 pip spike (that closed out the second trade).
Long story short, not only am I bragging about the two wins last night, but I think this may require more research into gapping. There might be a great risk/reward ratio on high probability gap trades. It probably isn't going to get me rich by itself, but it might be an awesome addition to a portfolio.
Oh, and BTW, this bot kicks ass.
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