Filling the gap is a popular strategy where you buy a stock when it gaps down in the morning and then wait for it to fill the gap.

Many bloggers have written about how good this strategy is. However, there usually isn’t much evidence to support those claims.

I test the strategy on 20 Nasdaq stocks between 2008-2018 and find mixed results after transaction costs. Read more »


This week we have seen a mini crash in the stock market indexes and an implosion of several short volatility ETNs. Mood in the stock market has quickly turned from exuberance to fear while some investors are ready to ‘buy the dip’.

Conventional wisdom suggests that the best time to buy stocks is when there is blood on the streets. Many suggest that high Vix readings are a good indicator to increase exposure to the market. Read more »


It’s no secret that financial markets are getting more and more efficient and therefore more difficult for the average trader. So it’s a good idea to think creatively and consider what might lead to an edge today or in the future. If you don’t have an edge you can’t make money.

Here are 10 new ideas to develop a trading edge in today’s markets: Read more »