CyberTrader Trick: The Opening Gap Fade

December 14th, 2006

As you might know, I switched to CyberTrader a while back and am loving it. It was a breeze to switch brokers and the trading platform is excellent.

What I’m really liking about CyberTrader right now is their Alert Templates. I think the name “Alert Template” is unfortunate because it gives the impression that all they’re used for is alerting you when a stock’s price gets to a certain point. Of course, they can do those simple alerts, but that’s just the tip of the iceberg. You can set up alerts for stop orders, trailing stops, and pretty much as complex an order as you can think of. There are some shortcomings (no one cancels other OCO yet), but from what I’ve seen of the new features in development, the next version will eliminate any shortcomings that I can think of.

It looks like there were several traders that faded the opening gap yesterday in the QQQQs (TraderMike, Ugly, Jamie, probably others).

Here’s how mine played out. It’s a trade that was made popular in Mastering the Trade by John Carter. It’s an excellent book that shows quite a few setups. I wanted to do a screencast showing how I set up CyberTrader to manage the opening gap fade for me. It is a high probability trade and what I like even more about it is that it is very low stress. I literally set up CyberTrader to automatically manage my trade without any input from me.

Also note that I’m new at this screencasting stuff and I’m certainly no Lindsay Campbell, so bear with me and cut me a little slack on the video quality. 😉

UPDATE: Jeff (the Stock Bandit) has a good primer on alert templates.


  1. Trader Mike Said,

    December 14, 2006 @ 6:30 am

    You’ve gotta love the gap fade and the persistent CyberTrader Alerts (conditional orders)

  2. estocastica Said,

    December 14, 2006 @ 1:03 pm

    Loved the screencast — very cool.

  3. Dave Said,

    December 15, 2006 @ 5:50 am

    @Mike – yep, now I just need to automate entering the trade and I’ll be set!

    @esto – I’m glad you liked it! I’ll try to post a couple more. Thanks very much. It looks like we’ve got another gap up today – almost 50 cents.

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