Can just one trade a day be any good?

[Tenler]

Everyone wants a trading strategy that allows you to make 1 trade per day but still can beat the market. Here is an example of how that could be made.

The Strategy: Gap & Go for Biotech Stocks
I decided not to reinvent the wheel and just took the highly popularized Gap & Go strategy. The “Gap & Go” is looking for stocks gap up from the previous day's close price with the goal to follow an uptrend. I’m using biotech stocks as they tend to have higher volatility compared to other industries.

An example of the ideal setup the strategy is looking for​

Screening Criteria

• Biotech Equities (I’m using iShares Biotechnology ETF $IBB as a list)
• Up in the morning 3% or more
• Are above pre-market high and yesterday’s high

Enter Criteria (when to open a position)

• Stock price is above EMA 9
• Stock is going up and EMA 9 is going

Exit Criteria(when to close a position)

• Price crosses below EMA 9 and stays there for 3 bars
• End of the same day
• Trailing stop loss of 1.0%

Conditions

• $10,000 trading capital
• Do not trade early close days
• Only one trade per day
• If no equities meet the screening or entry criteria, do not trade

The Results: +58% gain over one year
Profit $5,801.4 | Wins 48 | Losses 49
Looks pretty decent but I think that’s just the beginning as I’m going to improve it even further by maybe looking at overall market conditions like $SPY behavior or news.

Results over a year​

Share what you think. How would you improve it?

Disclaimer: Not investment/trading advice. All calculations are made with Breaking Equity

 

[praveen5344]

if u have the patience to wait for 6 hours for that one trade, you can be good at one trade per day

 

[kayasthpihu]

Yes, trading once a day, if done strategically, can be effective. It allows for focused decision-making, reduces the impact of short-term market fluctuations, and aligns with a disciplined approach. However, success depends on thorough research, a well-defined strategy, and disciplined execution rather than frequent trading.

 

[Bharat Tyagi]

Yes, a single well-executed trade in a day can be profitable, particularly if it aligns with a well-thought-out trading strategy and market conditions, emphasizing quality over quantity.

 

[Mishra_86]

I think yes, one trade would be profitable if it's based on thorough analysis!

 

[stoch]

Yes, making just one trade a day can be effective if it's based on a well-researched strategy and offers a good risk-reward ratio. Quality often outweighs quantity in trading with HFM, and focusing on one high-confidence trade allows for thorough analysis and minimizes the potential for overtrading.

 

[Antho]

Everyone wants a trading strategy that allows you to make 1 trade per day but still can beat the market. Here is an example of how that could be made.

The Strategy: Gap & Go for Biotech Stocks
I decided not to reinvent the wheel and just took the highly popularized Gap & Go strategy. The “Gap & Go” is looking for stocks gap up from the previous day's close price with the goal to follow an uptrend. I’m using biotech stocks as they tend to have higher volatility compared to other industries.

An example of the ideal setup the strategy is looking for​

Screening Criteria

• Biotech Equities (I’m using iShares Biotechnology ETF $IBB as a list)
• Up in the morning 3% or more
• Are above pre-market high and yesterday’s high

Enter Criteria (when to open a position)

• Stock price is above EMA 9
• Stock is going up and EMA 9 is going

Exit Criteria(when to close a position)

• Price crosses below EMA 9 and stays there for 3 bars
• End of the same day
• Trailing stop loss of 1.0%

Conditions

• $10,000 trading capital
• Do not trade early close days
• Only one trade per day
• If no equities meet the screening or entry criteria, do not trade

The Results: +58% gain over one year
Profit $5,801.4 | Wins 48 | Losses 49
Looks pretty decent but I think that’s just the beginning as I’m going to improve it even further by maybe looking at overall market conditions like $SPY behavior or news.

Results over a year​

Share what you think. How would you improve it?

Disclaimer: Not investment/trading advice. All calculations are made with Breaking Equity

Yes, one trade a day can be effective. As long as you're using a good strategy and proper risk management, it can be enough!

 

[stoch]

Yes, a single trade a day can be highly effective if executed well. It allows for focused analysis and precise execution, potentially reducing emotional stress and overtrading. The key is ensuring that each trade is well-researched, aligns with your strategy, and meets your risk management criteria.