Over a long period of time (5+) years, my setup tends to perform equally well during the day (except for lunch). However it has gone through long periods where it didn't perform well during a particular time period, only to turn around and perform great during that same time period. So before making any conclusion when is the best time to trade your setup, make sure you have a large enough sample size (3+ years).
No More Afternoons for Me
- Thread starter pspr
- Start date
After years & thousands of dollars in trading, the single greatest thing I did to save money and create more was to stop trading by 12pm EST.
I'm up and trading at 8am EST (bonds/currencies), indexes (930am) and continue trading till 12pm EST.
I view 1 trading day as 3 completely different and unique cycles:
Cycle 1 (AM session): typically plenty of movements taking place, whether from econ news, orders set to go on the open, etc.
Cycle 2 (Lunch): volume can dry up and so can the movements.
Cycle 3 (PM session): 50/50 on whether you will see volume, which usually equates to movements.
It comes down to how you trade and what you are looking for. Personally, I need things to be moving in order to make money. I know that usually these moves will occur during the AM session almost every single day.
I also know that from 12pm - close, it's a 50/50 shot on whether you will see volume come in, which could provide movements.
In the end it's all about your trading style though. I know some guys that can kill it during what I call 'chop' and that'd get killed during what I call 'movements'.
I'm up and trading at 8am EST (bonds/currencies), indexes (930am) and continue trading till 12pm EST.
I view 1 trading day as 3 completely different and unique cycles:
Cycle 1 (AM session): typically plenty of movements taking place, whether from econ news, orders set to go on the open, etc.
Cycle 2 (Lunch): volume can dry up and so can the movements.
Cycle 3 (PM session): 50/50 on whether you will see volume, which usually equates to movements.
It comes down to how you trade and what you are looking for. Personally, I need things to be moving in order to make money. I know that usually these moves will occur during the AM session almost every single day.
I also know that from 12pm - close, it's a 50/50 shot on whether you will see volume come in, which could provide movements.
In the end it's all about your trading style though. I know some guys that can kill it during what I call 'chop' and that'd get killed during what I call 'movements'.
My mother trades stocks and she does not trade during lunch but she still watchings everything during that time period on most days... she calls it the 'law of the land' and states the 'big boys are having 3 martini lunches'.
When I trade the ES I don't trade near lunch mostly because of the choppyness. During paper trading I would loose all my previouse gains. There are however some good ES trading videos on youtube of a trader that trades during lunch and she does quite well...
I rarely trade at the end of the day, mostly because my skill level is not there yet... the 3:30 reversal get me everytime! So, I stay out of it for now.
I don't trade FX from 4 - 8pm and usally wait till 9 after asia traders stablized into a trend or visable pattern.
When I trade the ES I don't trade near lunch mostly because of the choppyness. During paper trading I would loose all my previouse gains. There are however some good ES trading videos on youtube of a trader that trades during lunch and she does quite well...
I rarely trade at the end of the day, mostly because my skill level is not there yet... the 3:30 reversal get me everytime! So, I stay out of it for now.
I don't trade FX from 4 - 8pm and usally wait till 9 after asia traders stablized into a trend or visable pattern.
