Fair value gaps are one of the most used ideas in ICT and smart money trading. Until today, your AI could talk about them, but TraderWAI's rules couldn't test or trade them. Now they can: fair value gaps work in backtests and in conditional orders, with the same engine.
What counts as an FVG
TraderWAI uses the classic three-candle definition, on any timeframe from M1 to D1:
- Bullish FVG: the low of the 3rd candle is above the high of the 1st. The gap between them is the imbalance.
- Bearish FVG: the high of the 3rd candle is below the low of the 1st.
The rule fires on the first time a closed candle returns to the gap: when it touches its near edge (or, if you prefer, its midpoint) without closing beyond the far edge. A gap that was already revisited, or that price closed through, no longer counts. You can also say how recent the gap must be (20 candles by default) and a minimum size, so tiny gaps are ignored.
We tested it on 30 days of real data
Same rule on every market: M15 fair value gaps, first retest, only between 07:00 and 17:00 UTC (London and New York), stop just beyond the gap and target at 2R. These are the results from 20 September to 19 October 2026:
| Market and direction | Trades | Win rate | Result |
|---|---|---|---|
| Gold, bearish FVG (sell) | 36 | 42% | +9R |
| Gold, bullish FVG (buy) | 33 | 21% | −12R |
| NAS100, bullish FVG | 29 | 31% | −2R |
| EUR/USD, bullish FVG | 29 | 28% | −5R |
The same idea gave opposite results depending on the market and the direction. Thirty days is a small sample and past results don't guarantee anything, but it shows why you test before you risk money: the version that "everybody uses" is not automatically the one that works.
How to ask your AI
Just describe the setup in plain words:
- "Backtest gold: sell on the first retest of a bearish M15 FVG between 07:00 and 17:00 UTC, stop above the gap, target 2R, last 30 days."
- "Same, but only gaps bigger than 2 dollars, and entry at the midpoint of the gap."
- "Now compare it with buying bullish gaps."
When a version looks good, turn it into a live rule:
- "Create a conditional order: sell gold on the first retest of a bearish M15 FVG in the London session, stop above the gap, 2R, risk 0.5%."
TraderWAI checks the rule every minute on closed candles, even with the chat closed, and places the order on your broker when it fires.
Plans
Backtests are included in every plan: the last 7 days on Free (5 a day), 45 days on Plus and 90 days on Trader. Conditional orders too: 2 active on Free, 5 on Plus and 10 on Trader. Works with Claude, ChatGPT, Grok and Perplexity, and with MetaTrader, cTrader, TradeLocker and the rest of the supported platforms.
Trading involves risk. TraderWAI is a tool: it doesn't give signals or financial advice.