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Gap Absorption Strategy

Script from: TradingViewSwingPrice actionBreakoutMomentumVolatility

The Gap Absorption Strategy capitalizes on market gaps, allowing traders to adjust parameters for different stocks. By setting triggers, stop-loss, and take-profit levels as percentages of the gap, traders can refine their approach. Opening gaps tend to offer the best opportunities. Charts display TP/SL lines and update current opportunities. Adjust default parameters to align with specific stock behavior for optimal results.

Premium users only

Premium users can access all backtests with a Risk/Reward Ratio > 3

@ 1 h

3.52

Risk Reward

504.34 %

Total ROI

206

Total Trades

Premium users only

Premium users can access all backtests with a Risk/Reward Ratio > 3

@ 5 min

3.47

Risk Reward

39.66 %

Total ROI

85

Total Trades

Premium users only

Premium users can access all backtests with a Risk/Reward Ratio > 3

@ 1 h

3.43

Risk Reward

204.91 %

Total ROI

175

Total Trades

Rocket Companies, Inc. (RKT)

+ Gap Absorption Strategy

@ 2 h

2.88

Risk Reward

880.90 %

Total ROI

289

Total Trades

IOTA / TetherUS (IOTAUSDT)

+ Gap Absorption Strategy

@ 4 h

2.86

Risk Reward

20.72 %

Total ROI

17

Total Trades

Coca-Cola Company (The) (KO)

+ Gap Absorption Strategy

@ 1 h

2.83

Risk Reward

106.18 %

Total ROI

219

Total Trades

Costco Wholesale Corporation (COST)

+ Gap Absorption Strategy

@ 5 min

2.72

Risk Reward

11.79 %

Total ROI

44

Total Trades

Hewlett Packard Enterprise Company (HPE)

+ Gap Absorption Strategy

@ 15 min

2.67

Risk Reward

84.87 %

Total ROI

128

Total Trades

TOTALENERGIES (TTE)

+ Gap Absorption Strategy

@ 1 h

2.64

Risk Reward

203.67 %

Total ROI

419

Total Trades

Litecoin / TetherUS (LTCUSDT)

+ Gap Absorption Strategy

@ 4 h

2.59

Risk Reward

29.82 %

Total ROI

18

Total Trades

Merck & Company, Inc. (MRK)

+ Gap Absorption Strategy

@ 1 h

2.58

Risk Reward

256.22 %

Total ROI

350

Total Trades

Newmont Corporation (NEM)

+ Gap Absorption Strategy

@ 2 h

2.57

Risk Reward

1,463.46 %

Total ROI

484

Total Trades
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Active Trades

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Gap Absorption Strategy backtest statistics

Aggregated across every validated backtest TradeSearcher has run on this strategy. Figures update automatically as new backtests are added — they are not edited by hand. Classified as swing by holding period.

34
Backtests run
2.2
Avg profit factor
+389%
Avg net profit
+27%
Avg annualized return
76%
Avg max drawdown
0.14
Avg Sharpe ratio

On average, backtests of this strategy beat a buy-and-hold baseline by 384% over the same window.

Performance by asset class

MarketBacktestsAvg profit factorAvg net profitAvg max drawdownAvg Sharpe
Crypto392.7+25%0.37
Stocks7002.2+412%79%0.13

Backtests use the validated-universe filter: non-repainting scripts, over 15 trades, non-excluded. Per-market rows appear only when at least one backtest exists for that asset class.

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