Why forex robots don’t like gaps

Why forex robots do not like gaps

As forex trader you should be familiar with the term “market gap”. Stock traders know this term from the first day they start trading. Gaps are areas on a chart where the price of a stock (or another financial instrument) moves sharply up or down, with little or no trading in between. As a result, the asset’s chart shows a gap in the normal price pattern.

In the chart you can see the price opening much lower. For manual traders this usually means to go long, where forex robots are typically confused. Since an expert advisors cannot think it simply will follow the entry rule. In the example above it might go short where the manual trader would focus on a long position. Therefore its always recommended to ask you EA developer to create a Gap filter.

For those who are interested to create a forex trading strategy, read about important tips before you start.

 

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