If I find that for stock X, for past 5 years of daily OHLC data, 80% of the time, the Open was at least 1% lower than the day's high.
If we find that in this 80% of the cases, the high was reached before the low.
So if I bought the open and set a limit sell order at 1% above the open. And a stop loss 2% below the open. If the stop doesn't get hit, then sell at the close.
So in 20% of the time, I lose a max of 2% and in 80% of the time, I make a profit of 1%. So is my expected profit at least (80 *1 - 40 *2) = 40%?
What is wrong with this strategy?