Lets focus on open low strategy …it implies that there was no selling so assumption is …even the next day it will be same and there will not be any selling …
But for how many days we can rely on this assumption ?
Is not it possible that it can go down next day after lets say about an hour? and we might incur loss?
You are missing a very import part of this strategy knows as stop-loss.
You can go as long as this strategy is working with stop-loss.
Certainly it is possible that stock can go up / down next minute, hour, day, week or month and these things are known as profit booking, short covering, trend reversal, pull back / retracement.
Note : There is no strategy with zero risk.
I m assuming that you are trading intraday.
The probability that price will go up or down on any given day is 50/50. for proof, download returns from 2000 on nifty and do up % and down % return analysis , you will get the probabilities. Its very simple.
So ,The decision to buy or sell on any given day based on any strategy is hence 50/50.
you might as well just flip a coin and pay the brokerage and taxes if that makes you happy.
I have backetsted a BTST strategy, where going long on the stocks which are Open=Low for the day(if condition satisfies after 3:25pm),and exit at next day close has yielded positive returns.