24/7 markets needed

[botpro]

I came to the conclusion that for successful "mathematical" trading one needs a market that is "continous",
ie. without any overnight and weekend surpises with gaps.
This is IMO very important especially when one needs to apply hedging (especially when selling options).

 

[OptionGuru]

I came to the conclusion that for successful "mathematical" trading one needs a market that is "continous",
ie. without any overnight and weekend surpises with gaps.
This is IMO very important especially when one needs to apply hedging (especially when selling options).

Absolutely not


Gaps are beneficial to the buyer and seller. And why would anyone want to trade 24/7?

 

[botpro]

Absolutely not

Gaps are beneficial to the buyer and seller. And why would anyone want to trade 24/7?

For a timely hedging, ie. perfect hedging, a 24/7 market would be needed.
I've a hedging system where I need to close the hedging position (in this case the stocks) immediately
if the stock price hits a predetermined level. If it misses that point then it makes a loss.
Overnight and weekend gaps is the problem.
Which alternative(s) can be used for applying this in a non-24/7 market?

 

[i am nobody]

Absolutely not


Gaps are beneficial to the buyer and seller. And why would anyone want to trade 24/7?

I for 100% agree with you.

I did once a test on the ES:

1. test with 24/7 data
2. test with only RTH

Performance was almost identical. I trade mathematical models.
And if the markets are 24/7, what if you have to close a big size position outside of the RTH when volume is low? You cannot close your position and will also take a loss.

 

[Xela]

I came to the conclusion that for successful "mathematical" trading one needs a market that is "continous",
ie. without any overnight and weekend surpises with gaps.

Good luck with that.

Maybe there's some other planet, somewhere, where it exists: have you tried the Andromeda galaxy?

 

[Zr1Trader]

Crypotocurrencies are 24/7 it's not like the product will just break if you go 24/7 there will always be someone there to take advantage of innefficiamcys and bring it back in line. I've seen gold get smashed every night with 2000 lots @ market in thin trading before, life goes on. It can go back up to where it was trading before the smash on thin volume. Market makers (computers) could handle 24/7 no problem. With oil there will likely be a gap snday due to this Doha meeting . too bad oil isn't open so people can price the info as it comes over the weekend instead of getting gapped against on Sunday

Sry for bad grammar on tablet, can't type well

 

[botpro]

I for 100% agree with you.

I did once a test on the ES:

1. test with 24/7 data
2. test with only RTH

Performance was almost identical. I trade mathematical models.

Does your mathemetical model also use hedging?

And if the markets are 24/7, what if you have to close a big size position outside of the RTH when volume is low? You cannot close your position and will also take a loss.

Since the earth is round, then there would always be enough action present in a 24/7 market...

 

[cvds16]

since the moon is round would there be also be enough action there too ?

 

[i am nobody]

Does your mathemetical model also use hedging?


Since the earth is round, then there would always be enough action present in a 24/7 market...

No, don't use hedging. But I use all the available data for my calculations so I would have the same problem as you as everything starts with data and calculations.

I doubt there would always be enough volume. Theoretically you can trade already from sunday evening till friday evening non stop. Watch the volume.

 

[i am nobody]

since the moon is round would there be also be enough action there too ?

Yes but we cannot see it as the open markets are at the back side of the moon. And as the moon turns around the action is always at the back side. At least it was like that the last time I was there.