Trading the first two hours

R

Runningbear

I have a daytrading system that performs well, however it doesn't enter a trade until after the first two hours have finished.

Im looking for a short term system that can trade the opening with relative safety. In other words, Im looking to compromise total profits for lower drawdowns.

Im only looking to chip a point here and there, before I enter my longer term daytrade. Only interested in mechanical systems. Any suggestions?

Runningbear
 
Don't think so. Mechanical systems need those two hours since it usually takes the market that long to define intraday support and resistance. Trading the first hour or two requires human brain power, experience, intuition and more risk than trading in the later hours where support and resistance is better defined.

But, if you find something, let me know.

Charles
 
I make good profits in the first hour also, and in the last hour. I just think that it would be differcult to make it into a mechanical system with small drawdowns.

Charles
 
Sorry for the spelling error. I just think that it would be difficult to make first hour trading into a mechanical system with small drawdowns.

That's better.

Charles
 
2 hours? By the time the first two hours are over, 2/3 of the days trading range has been made.

Most of my daytrading stuff is in in the first 30 min.

Look to the previous days action to indicate where to get in early.

For instance, yesterdays SP high was about 850. Today, the market tested it early and failed.
 
Quote from CharlesTrader:

Don't think so. Mechanical systems need those two hours since it usually takes the market that long to define intraday support and resistance. Trading the first hour or two requires human brain power, experience, intuition and more risk than trading in the later hours where support and resistance is better defined.

But, if you find something, let me know.

Charles
More...

Not really. A good system should not take two hours to make a decision: does a human trader wait until two hours into the day to make a decision ? It is quite possible to use a large component of automation in the beginning and end of the trading sessions: just don't let your system go unattended, i.e. you still need a compliance system for the autmated trading decision systems.
 
Quote from candletrader:

I make most of my money in the first hour... you guys can have the rest of the day :cool:
More...


agreed... between 9:45-11:15 is where i make a bulk of my profits... between 12-2 i do not enter trades, and if im up a substantial amount before 12 i typically do not trade the close...
 
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