stratGapTrade.py

'''
A gap occurs when a stock opens lower or higher than the previous close. 
at 9:25 look for the stocks that are gapping up or down, and then go the opposite direction: 
    - shorting gap ups until they get back to flat with the prior day close, or going long gap downs. 
Four times out of five they make money. But the fifth trade will wipe out all the profits 

The key is to identify those situations where it is more probable than normal that the gap is actually fadable. 
A) Buy a stock when it opens more than 2 percent lower than the prior close. 
   Sell at yesterday closing price or at the close 

B) This system gets a modest boost if the day before is down, 
    (possibly because short-sellers would already be modestly in the money 
     and then the gap gives them an additional profit that they might, at that point, want to take.

C) Buy a stock if 
        (1) the stock was down the day before
        (2) the stock is opening 5 percent lower than the close the day before. 
   Sell either if the stock hits the close the day before or the stock closes without hitting the profit target.

D) Buy a stock if
        (1) the stock was down the day before,
        (2) the stock is opening 5 percent lower than the close the day before, 
        (3) QQQ is also gapping down at least one-half percent
    Sell if the gap is filled or at the end of the day. 
    
E) Short a stock when 
        (1) the stock is up the day before, 
        (2) the QQQs are gapping up at least one-half percent
        (3) the stock is gapping up greater than 5 percent.
    Cover when the stock closes the gap (i.e., cover at the closing price of the day before); 
    otherwise, close the position at the day before.

F) Buy a stock when 
        (1) the stock is down the day before, 
        (2) QQQ is gapping down more than half a percent, 
        (3) the stock is gapping down more than 5 percent.
    Hold the stock at least until the next morning.
    Sell when the stock goes lower than the prior day close.
'''