MNQ Gap-Fade (ETH) — RTH 08:30–15:00 CT, +/-3m refs

Strategy overview
This strategy tests a gap-fade idea on MNQ when trading an ETH chart but referencing RTH timing. It measures the overnight move from 3 minutes before the prior RTH close (14:57 CT) to 3 minutes after today’s RTH open (08:33 CT). If that gap is big enough, it bets on mean reversion at the open:

Short after a large gap up

Long after a large gap down

How it works
Sampling windows (RTH, Chicago time):

Prev close sample: the 14:57 bar (3 min before 15:00 close)

Open sample: the 08:33 bar (3 min after 08:30 open)

These offsets help avoid opening/closing bar noise and ensure the bars have formed.

Overnight % move:

(OpenSample−PrevCloseSample)/PrevCloseSample × 100

Signals (at 08:33 pulse):

If gap % ≥ Gap-Up threshold → enter SHORT

If gap % ≤ −Gap-Down threshold → enter LONG

Risk management:

Per-trade TP and SL as percentages from entry (both adjustable)

If still in a position at 14:57, the strategy forces flat (closes all) before the RTH close

Plots & visibility:

Plots the computed Overnight Gap % line

Horizontal lines at your Gap-Up and Gap-Down thresholds for quick visual checks

Alerts:

alertcondition() events fire on:

the open-sample ready pulse,

gap-up short, and gap-down long conditions

(Pine requires static alert messages; the % gap itself is visible on the chart.)

Inputs you can adjust
Times (CT): RTH open/close and the ±3 min offsets (use different values if desired)

Gap thresholds (%): separate values for gap-up (short) and gap-down (long)

Take-profit / Stop-loss (%): per-side percentage targets from average entry price

Instrument & session notes
Designed for MNQ; works on an ETH chart while internally referencing CME/Chicago (CT) RTH times via 1-minute sampling.

If you prefer different markets or exact ET timestamps, change the time inputs accordingly.

Assumptions & limitations
This is a research/backtest tool for a simple gap-fade rule, not a complete trading system.

Slippage, fills, and overnight liquidity may differ from backtest assumptions.

Mean reversion can fail on trend days and during news events; use filters or wider thresholds if needed.

That should be everything reviewers and users need to understand what it does and how to tune it. Want me to add a short “Suggested defaults” block (e.g., 0.75–1.25% gaps, 1% TP/SL) or a “Known gotchas” section for ETH vs. RTH charts?









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