In this post I will be reviewing the Forex Weekend Gap EA for the free to download MetaTrader 4 trading platform. This is a fully automated forex trading system based on the popular and widely used gap trading strategy. Trading the weekend gaps has been a strategy that has been around for a long time. Gap trading can be powerful when done correctly although it’s lack of frequency is not for everyone.
Forex Weekend Gap EA Strategy
The Forex Weekend GAP EA implemented strategy does not use any indicators are fundamental analysis; it is very simple and straight forward to understand. It can trade the weekend gap on multiple currency pairs and there are broker filters to ensure it does not trade the gap when the weekend spread has been widened too much which would make it difficult to profit.
Some brokers will even widen the spread greater than the weekend gap which of course makes it very difficult to profit from. I would ensure I am using a regulated true ECN forex broker for the most competitive spreads and execution speeds.
The Forex Weekend Gap EA allows you to set the minimum gap required for a gap trade to be placed. The trading strategy is basically to try and take advantage of the gap from where market price opened away from the closing price prior to the weekend.
If the open price when the market opens is greater than the closing price then it will anticipate that the price will move back to the closing price essentially covering the weekend gap.
If the weekend gap was 30 pips it could aim for the full gap to close or to break even and close half the position as half the gap closes and let the rest play out. These settings can be adjusted from the Forex Gap EA settings.
Forex Weekend Gap EA Summary
Overall, the Forex Weekend Gap EA is based around a well known trading strategy that has been around for a while but can easily be done manually. It only trades once a week on each pair when the market opens but you can trade it on multiple currencies if you wish. Even if you wanted to trade the weekend gap manually it would only take a few minutes upon market opening.
The Forex Weekend Gap EA comes with full support, instructions, an optional broker spread monitor (you can get this info for free from MyFxBook Spreads) and a 60 day money back guarantee.