Spike Fade: Automatically Trade Against Overshoots at Key Times
Around the US market open and close, or the daily and weekly candle close, prices often overshoot and then snap back. Spike Fade watches the market at the times you choose: it shorts sharp spikes up and buys sharp drops, then exits as the price comes back — without you having to be at the screen every time.
This strategy supports Simulation: trades are filled against live prices, but no real orders are placed.
How it works
- 1
Wait for a market event
It waits for the times you've picked: US market open, US market close, daily close, weekly close or monthly close.
- 2
Watch for a spike
After the event, it watches the price for the minutes in your Observe window, and only acts if the move goes past the Spike threshold.
- 3
Enter the opposite way
It shorts a sharp spike up and goes long on a sharp drop, betting that the price will come back after overreacting.
- 4
Three ways to exit
When the price retraces part of the spike by your Take-profit retrace, it exits with a profit; if the spike keeps going, it stops out; if nothing happens for too long, it closes the position at the Timeout.
Who it's for
- People who've noticed prices often overshoot at key times and want to profit from the snap-back
- People who can't be at the screen for every US open and close or candle close
- People who like clear entry and exit rules with a take-profit, a stop-loss and a time limit
Key settings
- Market events
- Which times to watch. You can pick several.
- Observe window (min)
- How many minutes after the event to watch for a spike, from 1 to 15.
- Spike threshold (%)
- How far (%) the price must move within the Observe window before it acts.
- Take-profit retrace (%)
- How much of the spike must be retraced before taking profit — 50% means half of it.
- Stop loss (%)
- If the price keeps moving the same way by more than this % after entry, it stops out.
- Timeout (min)
- If neither take-profit nor stop-loss is hit within this time after entry, the position is closed.
Risks and things to know
Entering the opposite way is a bet that the price will come back. If the market keeps moving the same way after the spike, the stop-loss will be triggered.
Moves around these events are usually more violent. Set the stop-loss too tight and you may get shaken out; too wide and each loss gets bigger.
Futures only. The higher the leverage, the bigger the loss from the same price move.