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If a higher opening price gap occurs, then you will place an order to sell once the market has come back down and penetrated the previous day's high by a given number of ticks.

Such an order must be given as a sell stop order or a sell stop limit order.

You will use a stop loss either at a predetermined dollar amount or several ticks above the day's low once your order has been filled.

Of the two stop methods, I prefer the money management dollar stop loss because, in many cases, the day's price range will have been too narrow to permit a reasonable stop loss to be placed.

Assume the following situation: T-bond futures establish a trading range yesterday of 10201 as the low, 10214 as the high, 10203 as the close. Today, the market opens at 1Jl126, a gap higher opening. This is a gap higher opening because the market has opened above the previous day's high price.

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