EOD - How to avoid huge opening gaps?

[Foerster]

Hello,

I use daily candles and would like to avoid huge opening gaps.
The strategy should only buy, if the current day opening is within a certain range +-X% of last days close.

Since the the strategy only has one candle per day I 'am not sure if my approach would work:

&& (Close[0]) * (1 + GapUpLong) >= CurrentDayOHL().CurrentOpen[0]
&& (Close[0]) * (1 - GapDownLong) <= CurrentDayOHL().CurrentOpen[0])

Also is there anything I need to change in the general settings?

        protected override void Initialize()
        {
			EntriesPerDirection = 2; 
    		EntryHandling = EntryHandling.AllEntries;
            SetStopLoss("", CalculationMode.Percent, StopProzent, true);
            CalculateOnBarClose = true;
					
        }
		
        /// <summary>
        /// Called on each bar update event (incoming tick)
        /// </summary>
        protected override void OnBarUpdate()
        {
			EntriesPerDirection = 2; 
    		EntryHandling = EntryHandling.AllEntries;
			
			
			(..........Random Strategy................)
[COLOR="Red"][SIZE="3"]				&& (Close[0]) * (1 + GapUpLong) >= CurrentDayOHL().CurrentOpen[0]
				&& (Close[0]) * (1 - GapDownLong) <= CurrentDayOHL().CurrentOpen[0])[/SIZE][/COLOR]
				
            {
                EnterLong(DefaultQuantity, "");
            }

Are there other alternatives such as using different order types?
I also tried:
EnterLongStopLimit(DefaultQuantity, (Close[0]) * (1 + GapUpLong), (Close[0]) * (1 - GapDownLong), "");
But backtesting gave me 0 trades on this one.

So what is the most practical way to avoid opening gaps?

[NinjaTrader_PatrickH]

Hello Foerster,

Thank you for your post.

The Close[0] will actually check the current bar's close and not the previous bar's close. If you wanted to check the previous day's close you would use Close[1] in this case.

So you could compare the current open with Open[0] against the previous close with Close[1].

For information on Open please visit the following link: http://www.ninjatrader.com/support/h...s/nt7/open.htm

For information on Close please visit the following link: http://www.ninjatrader.com/support/h.../nt7/close.htm

Please let me know if I may be of further assistance.

[Foerster]

The Close[0] will actually check the current bar's close and not the previous bar's close. If you wanted to check the previous day's close you would use Close[1] in this case.

If I did as you say, wouldn't the strategy just check if the last candle had a gap?

Basically all I want is in this picture:

[NinjaTrader_JC]

Hello Foerster,

If I am following your logic you want to check the previous bars Close value to make sure that the current bar's Open is not more than 2% above or below the Close value correct?

If so you should be able to use Close[1] to check the last days Close value and Open[0] for the current days open price.

Here is a thread that has a few examples of using Brackets that may view for an example.

http://www.ninjatrader.com/support/forum/showthread.php?t=19346

Let us know if that works for you or if you have any questions.