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Sessions

NYSE Sessions indacator 📌 NYSE Open–Close Session Map — by o0psi This tool marks the exact candles where the New York Stock Exchange opens and closes, and automatically tracks the true session high and low. Everything is locked to the exact bar where it happened — no drifting, no extended rays, no repainting. 🔹 Features NYSE OPEN marker (9:30 EST) NYSE CLOSE marker (16:00 EST) Faint background highlight showing the full regular session Real session high/low detection High/low candles update live as the session forms High/low markers stay attached to the exact candle that created them Perfect for futures, indices, and equities traders 🔹 Why traders use this The NYSE open and close create some of the most important liquidity events of the day. This indicator makes them obvious — clean visuals, no clutter, no guessing. 🔹 Ideal for SPY / ES / NQ scalpers US30 / SPX traders Liquidity + session-based traders Intraday momentum and volatility setups Anyone who uses NY open/close as key decision points Made with precision by o0psi. Enjoy the clean look — and drop a comment if you want a pre-market or extended-hours version.
Education
by o0psi
When to Trade — When to Stay OutWhen to Trade — When to Stay Out: A Deep, Practical Guide for Traders Timing is a core edge. Not every hour, session, or chart condition is trade-worthy. The difference between a profitable trader and an active losing trader is not how many trades they take — it’s which trades they take and when. This article gives you a detailed, systematic framework to decide when to trade and when to stay out, with concrete rules, time windows, checklists and worked examples. Big-picture logic Markets are driven by liquidity (where orders sit), volatility (how fast price moves) and participants (who is trading). Good timing aligns these three: Liquidity concentration (institutions, marketmakers) produces cleaner, higher-probability moves. Right volatility means enough movement to reach targets but not so much that stop losses are random. Recognizable market structure (trends, ranges, breaks) allows rules to be applied consistently. If any of the three is missing, edge declines and risk of random losses rises. Session windows — when the market is most tradable Below are standard session definitions in UTC+00:00. Adjust for daylight savings if required (noted where relevant). Tokyo / Asian Session ⏵ UTC+00:00: 23:00 – 08:00 ( main liquidity often 23:00–02:00 UTC ) ⏵ Characteristic: lower liquidity for major FX pairs, choppier price action. Exceptions: JPY crosses, pairs with Asia-led liquidity, and crypto (24/7). London Session ⏵ UTC+00:00: 07:00 – 16:00 (most active 08:00–11:00 UTC) ⏵ Characteristic: heavy institutional flow, high liquidity. Many clear directional moves begin here. New York Session ⏵ UTC+00:00: 12:00 – 21:00 (most active 13:00–16:00 UTC) ⏵ Characteristic: continuation or reversal of London moves; major news releases occur here. Key overlap (best single window) ⏵ London–New York overlap: UTC+00:00 ~12:00–16:00. Highest combined liquidity and volatility; most “clean” trends and reliable breakouts occur here. Rule of thumb: Prefer intraday trades during the London session and the London–New York overlap. Be selective in Asia unless trading JPY pairs or range-break strategies designed for low liquidity. Concrete: Best times to trade (prioritized) Session open impulse — first 60–120 minutes of London or New York sessions. Overlap window — London + New York overlap (UTC+00:00 ~12:00–16:00). Post-news verified moves — 10–30 minutes after high-impact macro prints, if market structure becomes clear and isn’t just noise. Clear breakouts after consolidation during active sessions (volume confirmation, sweep of liquidity, not just a one-bar spike). When to avoid trading (and why) Low-volume Asian hours for majors — price tends to chop and give false signals. Right before major macro releases (NFP, CPI, FOMC) — price can gap or spike unpredictably. Exceptions: defined volatility playbook with strict hedges. Midday lulls after initial session impulse — often flat ranges and low edge. On unclear structure / messy price action — wide, overlapping candles, no clear swing highs/lows. During market holidays or early close days — liquidity is thin; spreads widen. Pre-trade checklist Time window OK? (London / NY open or high liquidity event) Major news? (No significant release within ±30 mins) Higher timeframe structure clear? (H4 or Daily trend / range) Trade idea defined (entry, stop, target) — use price levels, not indicators only. Risk per trade ≤ planned % of account (see position sizing). Reward : Risk ≥ your minimum (e.g., 1.5–3:1 depending on edge). Catastrophic stop capability confirmed (can you absorb worst-case slippage?) Exit rules set (profit-taking scale or full exit) Trade logged in journal immediately after (reason, setup, time, bias) Position sizing — exact worked example (step-by-step) Use a fixed % of equity for risk per trade (commonly 0.5%–2%). Example uses 1% risk. Assume: Account size = $10,000. Risk per trade = 1% of account = $10,000 × 0.01. We compute digit-by-digit: 10,000 × 0.01 = 100. So maximum $100 risk on this trade. Generic position-size formula: Position size (units) = (Account Size × Risk%) ÷ (Stop Distance in price units × Value per price unit per 1 unit) Always recalc pip/value for cross rates and for instruments (stocks, futures, crypto) — adapt the “value per price unit” accordingly. Money Management is much more important than a strategy. You should learn Money Management before trying any strategy. Order types & execution rules Limit entries at confluence levels (support/resistance + liquidity sweep zone) — better price and less slippage. Stop orders for breakout entries — use when you want to enter only after momentum confirms. OCO (One Cancels Other) for scaling / invalidation management — reduces manual errors. Avoid market entries during major news due to slippage/gap risk, unless your plan accounts for it. Trade management & exits Initial target: defined by structure (previous swing, ATR multiples, measured moves). Scale out: consider taking partial profits at the first reasonable target, let the rest run with a trailing stop. Stop relocation: only move stop to breakeven after a predefined profit multiple reached (e.g., after +1R or after price clears a new structure). Don’t move stops based on emotion. If price returns and breaks your entry zone invalidating the setup, exit — the market changed. Strategy-specific timing tweaks Trend-following: prefer strong sessions (London/NY) and avoid Asian low-liquidity hours. Enter on retracements that align with higher timeframe trend. Range / mean-reversion: worst during session opens; best during mid-session lulls, but only if volatility is low and boundaries are clear. Breakout strategies: require confirmation — e.g., breakout during overlap or accompanied by increased volume / volatility. Avoid breakouts in thin Asian hours. News scalping: high risk; only for experienced traders with defined entry, strict spread/latency controls, and capital to absorb spikes. Common mistakes (and how to fix them) Trading outside your chosen time windows — fix: enforce a trading clock. Overtrading in chop — fix: increase minimum R:R and wait for clear structure. Ignoring spreads and liquidity — fix: include spread in stop/target math and avoid thin sessions. Moving stops prematurely — fix: use rules (e.g., only move after +1R). Trading news impulsively — fix: have a news plan: either avoid or have a predefined volatility playbook. Emotional trading (e.g. not closing the position when the price hits stop-loss) Psychological & routine rules Trade only when rested and focused. Limit screen time to your pre-set sessions. Keep a journal: reason for trade, outcome, lessons. Review weekly. Daily routine: pre-market scan 30–60 minutes before your active session, post-session journal entry. FAQ Q: Can I trade during Asian hours? A: Yes — but selectively. Prefer JPY pairs, Asia-centric instruments, or strategies built for low volatility. Q: What if my timeframe and session disagree? A: Give priority to higher timeframe structure. If H4 / Daily shows trend, trade during active sessions for better fills. Q: How much should I risk per trade? A: Conservative traders use 0.5%–1% per trade. More aggressive ones use up to 2%. The key is consistency and drawdown planning. Focus your trading during high-liquidity windows (London, New York, and their overlap), avoid low-volume and pre-news periods, always validate trades with liquidity + volatility + clear market structure, use strict risk management (e.g., 1% per trade with position sizing), and follow a pre-trade checklist to avoid low-quality setups. Better timing = better edge. Enjoy!
Education
by LonesomeTheBlue
24
Why you should choose your trading period carefullyFirst, let's look at the four most important trading sessions. The Forex and stock market is divided into different trading sessions, which are based on the opening hours of the main financial centers: Session Opening Hours (UTC) Major Markets: -> Sydney session 22:00 – 07:00 Australia, New Zealand -> Tokyo session 00:00 – 09:00 Japan, China, Singapore -> London session 08:00 – 17:00 UK, Europe -> New York session 1:00 p.m. – 10:00 p.m. USA, Canada Note: Times vary slightly depending on summer or winter time. Why are trading sessions important? -> Volatility & Liquidity Depending on the session, there are different market movements. High liquidity → tight spreads and better order execution. Low liquidity → greater slippage and wider spreads. -> Active currencies & markets During the Tokyo session, JPY and AUD pairs are particularly active. During the London session, EUR and GBP pairs are the most volatile. During the New York session, USD pairs and stock markets moved the most. Opportunities & risks during overlapping times: The overlaps between sessions are the most volatile times because several major markets are active at the same time. 1. London-New York Overlap (13:00 – 17:00 UTC) → Highest volatility Why? The world's two largest financial centers operate at the same time. Opportunities: Big price moves → good for breakout traders and scalping. High liquidity → tight spreads, fast order execution. Risks: Extreme volatility → rapid price changes can trigger stop losses. News (e.g. US jobs data) can cause sudden movements. Practical example: A trader is watching EUR/USD and sees strong resistance at 1.1000. US inflation data will be released at 13:30 UTC. If the data is better than expected → USD strengthens, EUR/USD falls. If the data is worse → USD weakens, EUR/USD rises. Within a few minutes the price can fluctuate by 50-100 pips. → Strategy: News traders rely on quick movements, while conservative traders extend stop losses or pause during this time. 2. Tokyo-London Overlap (08:00 – 09:00 UTC) → Medium volatility Why? London opens while Tokyo is still active. Opportunities: JPY pairs (e.g. GBP/JPY) are moving strongly. Breakouts through the European opening. Risks: Sudden changes in direction as European traders often have a different market opinion than Asian ones. Practical example: A scalper is trading GBP/JPY in a narrow range of 185.00 – 185.20 during the Tokyo session. At 08:00 UTC London opens with GBP/JPY breaking above 185.50. Within 30 minutes the price rises to 186.00 as European traders buy GBP. If you recognize the breakout early, you can quickly take 50-100 pips. → Strategy: Scalpers rely on quick entries and take profits before volatility subsides. 3. Sydney-Tokyo Overlap (00:00 – 07:00 UTC) → Low volatility Why? Mainly the Asian market is active. Opportunities: Less volatility → good for range trading. Cheaper spreads for AUD and NZD pairs. Risks: Little liquidity → Slippage may occur. Strong moves are rare, except for major news from Japan or Australia. Practical example: A swing trader notes that AUD/USD has been fluctuating between 0.6500 and 0.6550 for days. During the Sydney-Tokyo session the price mostly stays in this range. The trader places a sell limit order at 0.6550 and a buy limit order at 0.6500. Since there is little volatility, it can be profitable with multiple small trades. → Strategy: Range trading is ideal because no major breakouts are expected. Conclusion: Each trading session has its own characteristics, opportunities and risks. The crossovers are the most volatile times - good for day traders, but risky for inexperienced traders. Anyone who understands the market mechanisms can take targeted action at the right time. The strategies mentioned above are simply derivations from the advantages and disadvantages of the respective sessions. Of course, a well-founded strategy concept requires much more.
GBEBROKERS:US500Education
by Speechless-Trading
Trading sessions liquidity huntLiquidity serves as the driving force behind all markets. The fundamental driver of any price shift involves the creation and aggregation of liquidity, with the objective of accumulating or distributing positions among market participants. Accumulating positions necessitates counter liquidity to fulfill orders and initiate positions in the desired volume. Liquidity is therefore established within specific price ranges, with the intention of later manipulating it toward the accumulation of counter liquidity, ultimately achieving the goals of order fulfillment. The bulk of liquidity, including stop orders and liquidations, tends to congregate around technical and psychological support/resistance levels, which can be observed retrospectively through the analysis of clusters and volume profiles. Engaging in trading based on a one-time reaction, characterized by a substantial cluster forming during the breach of a particular price level, can lead to premature entry and potential losses, driven by inaccurate expectations of either a price breakthrough or deviation from calculated reference points - An approach that leans towards caution, involving the selection of a trading setup once liquidity has been obtained from the previous trading session's highs/lows within the prevailing trend. This process is carried out while ensuring alignment between higher and lower timeframes. - The primary objective is capital preservation, which is accomplished by minimizing risk to the range of 0.5-1% per trade and adjusting open positions to the break-even point after confirming the trend's structure. - The strategy opts for an entry technique that boasts a high mathematical expectation of success. - Fresh positions are initiated exclusively during periods of elevated market volatility, particularly during the optimal trade time (OTT) sessions in London and New York. The focus is directed towards trading setups featuring risk:reward ratios ranging from 1:3 to 1:10. Given the dynamics of market participants accumulating and distributing their positions during trading sessions, it's reasonable to assert that liquidity forms outside the fluctuations of these sessions. This liquidity is typified by stop orders and position liquidation within the scope of a micro-trend. Consequently, it can be inferred that the commencement of the subsequent session will involve manipulation. The aim of this manipulation is to interact with such liquidity to amass positions in the opposite direction. Coupled with heightened volatility during the session's commencement, this provides opportunities to initiate positions before the impending price movement. The primary criterion for entering a position will be the disruption of the existing structure following the capture of liquidity. Additional factors might encompass corrective momentum, liquidity in the opposing direction acting as an attraction for distributing accumulated positions during manipulation, and the formation of trading ranges with deviations, among others. Entry into a position occurs on a lower time frame, emanating from an untested supply/demand zone. An additional aspect to consider is the presence of local liquidity before reaching the entry point.
BITSTAMP:BTCUSDEducation
by Crypto4light
Timezone Sessions for intraday trading Here is an examples of most often models for intraday Asia range - London manipulation - NY reversal Asia expansion - London consolidation - NY continuation Asia range - London expansion - NY consolidation Hunting liquidity stop losses Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
When Is The Best Time Of Day To Trade Forex?The forex market, renowned as the world's largest and most liquid financial market, facilitates the daily trading of trillions of dollars. With its round-the-clock operation, forex traders enjoy the flexibility of trading at any hour. However, determining the optimal time to trade forex is a common query, particularly among novice traders. The answer hinges on several factors, such as market volatility, liquidity, and trading sessions. In this comprehensive article, we will delve into these factors and unravel the best times of day to trade forex, tailored to your trading style and preferences. Whether you identify as a day trader, swing trader, or long-term investor, understanding the optimal trading periods can enhance your trading strategy and potentially boost your performance. Join us as we delve into the world of forex trading and uncover the prime opportunities for executing successful trades. What Influences Market Price Changes Price changes in the market can be influenced by a range of factors, which can be broadly classified as fundamental or technical factors. Fundamental factors encompass economic indicators like inflation, interest rates, GDP, and employment data, as well as geopolitical events such as elections, wars, and natural disasters. These factors have the potential to impact market sentiment and investor confidence, leading to shifts in asset demand and supply, ultimately affecting prices. On the other hand, technical factors pertain to market trends, chart patterns, trading volumes, and key price levels. Technical analysts employ these factors to identify potential price movements and make trading decisions based on patterns and indicators. Apart from fundamental and technical factors, changes in regulations, shifts in investor sentiment, and unexpected news or events can also trigger price fluctuations in the market. Being aware of these factors is vital for traders seeking to make well-informed trading choices. By staying updated and conducting comprehensive analyses, traders can potentially spot profitable trading opportunities and effectively manage their risks. Types Of Trading Sessions There are four primary trading sessions based on market activity timing: Asian, European, American, and Pacific. Each session has its distinct characteristics and offers unique trading opportunities. Asian session: The Asian trading session commences with the opening of the Tokyo market at 7 PM EST (midnight GMT). This session is typically associated with low volatility, as currency pairs tend to trade within a narrow range. However, news releases from Japan, China, and Australia can introduce moments of increased volatility. European session: The European trading session starts with the opening of the London market at 3 AM EST (8 AM GMT). It is renowned for its high volatility, often witnessing substantial price movements in currency pairs. This session is marked by significant trading volumes and liquidity, presenting ample opportunities for traders. American session: The American trading session begins with the opening of the New York market at 8 AM EST (1 PM GMT). Similar to the European session, it is characterized by high volatility and large price fluctuations. The American session is known for its substantial trading volumes and liquidity, making it an active and dynamic period for traders. Pacific session: The Pacific trading session commences with the opening of the Sydney market at 5 PM EST (10 PM GMT). This session typically experiences low volatility, with currency pairs often trading within a limited range. However, news releases from New Zealand, Australia, and Japan can introduce temporary spikes in volatility. Understanding the unique characteristics and opportunities of each trading session is essential for traders to optimize their strategies and potentially enhance their trading performance. Traders should consider their individual trading styles and preferences when selecting the most suitable session for their trading activities. How To Select The Best Forex Trading Time Selecting the optimal trading time in the forex market is crucial for traders aiming to optimize their strategies and enhance their trading performance. Here are key criteria to consider when determining the best time to trade forex: Market Volatility: Volatility refers to the magnitude of price fluctuations in the market. Higher volatility often presents more trading opportunities, as it implies larger price movements. Traders who prefer more active and potentially profitable trading conditions may seek periods of heightened volatility. Liquidity: Liquidity refers to the ease of buying or selling assets without causing significant price changes. High liquidity ensures smoother trade execution and tighter bid-ask spreads. Trading during sessions with high liquidity is generally preferred as it reduces the risk of slippage and improves order execution. Overlapping Sessions : Overlapping sessions occur when multiple trading sessions are active simultaneously. These periods typically exhibit increased trading volumes and volatility as market participants from different regions are actively trading. The most significant overlaps are between the European and American sessions, offering potential trading opportunities. Trading Style: Different trading styles, such as day trading, swing trading, or long-term investing, have varying requirements regarding trading times. Day traders often focus on active sessions with high volatility, while swing traders may analyze longer timeframes and may have more flexibility in selecting trading times. Economic News and Events: Major economic news releases, such as central bank announcements, employment data, and GDP reports, can significantly impact currency markets. Traders who employ a news-based strategy may prefer trading during these eventful periods to take advantage of price volatility. Personal Availability: Traders should also consider their own availability and comfort levels when selecting the best trading time. It's essential to trade when you can dedicate sufficient time and focus to analyze the market and execute trades effectively. Day Of The Week Price movements in the forex market during the week are influenced by the psychological tendencies of large traders. Understanding these tendencies can help traders make informed decisions. Here's a breakdown of the typical price movements throughout the week: Monday: Many traders adopt a wait-and-see approach on Mondays. This is because important news releases in Europe and the USA are relatively rare at the beginning of the week. As a result, the market often exhibits a flat or range-bound behavior. Tuesday to Thursday: Volatility tends to be highest during these days of the week. Traders actively participate in the market, leading to increased price movements and trading opportunities. These days are generally considered favorable for trading as the market is more dynamic. Friday: Towards the end of the week, some traders choose to secure their profits and avoid taking excessive risks. As a result, there may be movements against the main trend as traders close positions and prepare for the weekend. It's important to be cautious and consider potential reversals or countertrend movements on Fridays. When analyzing weekly candlestick formations, it's common to observe longer shadows on Monday and Friday. These shadows represent price movements that occurred during these days. The movements from Tuesday to Thursday form the body of the candlestick and are often more significant. Although volatility can vary throughout the week, it is generally not as significant as intraday volatility. Therefore, traders can often overlook this factor when trading forex. Time Frame As the time frame of your trading increases, the importance of selecting specific trading times diminishes. Here's a breakdown of the significance of trading time based on different time frames: Up to H1 (Hourly Charts): When trading on shorter time frames, such as up to H1, it is crucial to align your trading activities with the trading sessions, significant news releases, holidays, and weekends. These factors can greatly influence market behavior and volatility during shorter time frames. H4 (4-Hour Charts): On the H4 time frame, only two 4-hour candles are formed during a single trading session. While the importance of selecting specific trading times during the day decreases, it is still essential to consider the timing of important economic statistics releases. Entry points in this style of trading are less frequent compared to shorter time frames like M5 or M15, requiring traders to assess market conditions 3-4 times a day. D1 (Daily Charts) and Higher: For traders using daily charts and higher time frames, the schedule of trading sessions becomes less significant. Instead, focus on key news release dates and holidays. Traders typically assess market conditions once a day, and trading signals appear at the close of the daily candle. It's important to note that these recommendations mainly apply to the forex market. When trading stocks and commodities, it is advisable to follow the exchanges where the highest volume of the respective assets is traded. Economic Calendar In forex trading, it is generally sufficient for traders to consider the standard economic calendar. This calendar provides the dates of major macroeconomic statistics, and a filtering system can help identify news with higher significance. One particularly important day to note is the first Friday of each month. This is when the Nonfarm Payrolls report is released, revealing the number of jobs created outside the United States agricultural sector. This report is widely regarded as one of the most crucial economic indicators in forex trading. For stock market traders, it is important to be aware of the dates of quarterly reports and ex-dividend dates. Quarterly reports can potentially lead to market turbulence, and the ex-dividend date marks the formation of the shareholder register for dividend payments. Traders often observe a dividend gap following the ex-dividend date. By paying attention to these key dates and events in both the forex and stock markets, traders can enhance their decision-making process and adjust their strategies accordingly. Non-working days Non-working days in financial markets can be classified into various categories: Global Holidays: These are holidays that are celebrated worldwide, such as New Year's Day, Christmas, and Easter. During these holidays, financial markets across the globe are generally closed, and trading activities are halted. Local Holidays: These are specific holidays observed in individual countries or regions. Examples include Independence Day in the United States or Labour Day in various countries. On these days, the local financial markets may be closed, affecting trading activities in those specific regions. Force Majeure Events: In rare circumstances, trading may be paused due to unforeseen events such as terrorist attacks, natural disasters, or extreme market volatility. Stock exchanges may choose to suspend trading for a few days to assess the situation and ensure market stability. However, forex trading typically continues uninterrupted during these events. It's worth noting that even when there are local holidays, forex trading remains open. However, the liquidity in the market tends to be lower, resulting in reduced volatility. As a result, trading during such periods may be less feasible or may require adjustments to trading strategies. Holidays in the United States and Europe, in particular, can significantly impact trading sessions due to the size and influence of these markets. The Best Time To Trade Forex : (For Beginners) As a beginner in forex trading, understanding the optimal time to trade currency pairs is crucial for maximizing profits and managing risks. Here are some important considerations to help you navigate the forex market effectively: Focus on High-Volume Sessions: Trading during the European and American sessions is recommended because these sessions have higher trading volume and liquidity. Increased activity in the market can provide better trading opportunities and narrower bid-ask spreads, which can be advantageous for beginners. Exercise Caution during the Asian Session: The Asian session is generally characterized by lower volatility and liquidity. While certain currency pairs tied to the Australian and New Zealand economies may exhibit more activity, beginners are advised to approach the Asian session with caution due to the potential challenges in finding favorable trading conditions. Monitor Economic News Releases: Economic news releases can significantly impact currency prices and create market volatility. Stay informed about key economic indicators and their release times, as this information can help you identify potential trading opportunities. Consider trading during periods of news releases to take advantage of increased market activity. Trade Major Currency Pairs: Major currency pairs, such as EUR/USD, GBP/USD, and USD/JPY, tend to be more liquid, stable, and widely traded. These pairs offer greater accessibility and can provide a more favorable learning environment for beginners. Trading major currency pairs allows you to focus on well-established trends and reduce the impact of unexpected price swings. Utilize a Demo Account for Practice: Before risking real money, take advantage of demo accounts offered by forex brokers. Practice trading various currency pairs and familiarize yourself with different trading sessions. This will help you gain experience, develop your trading skills, and refine your strategy without incurring any financial risk. By following these guidelines and continuously educating yourself about the forex market, you can enhance your trading knowledge, gain confidence, and increase your chances of success as a beginner forex trader. Remember to adapt your approach as you gain experience and always manage your risks effectively. Conclusion In conclusion, the optimal time to trade forex is influenced by various factors, including market volatility, liquidity, trading sessions, fundamental and technical factors, and personal trading preferences. By considering these factors, traders can make better-informed decisions and improve their trading performance. It is important to stay updated on market conditions, understand the characteristics of each trading session, and adapt trading strategies accordingly. Additionally, traders should consider the impact of economic news releases and be aware of the time of day and day of the week when planning their trades. By taking a comprehensive approach, traders can enhance their chances of success in the forex market.
Education
by FOREXN1
14
🕔Trading Sessions🕔 What are the Operating Hours of the Forex Market? The forex market is operational 24 hours a day, five days a week, excluding weekends. It commences trading at 5:00 PM EST on Sunday and concludes at 5:00 PM EST on Friday, resulting in a total of 120 trading hours, with a 48-hour break from Friday to Sunday (EST). The forex market caters to global traders, accommodating their needs irrespective of their time zone. The market is divided into distinct "forex sessions" based on global time zones, which experience varying levels of volume and volatility. Trading hours are subject to variation depending on daylight savings and holiday schedules. During daylight savings periods, regions utilizing this system will observe a one-hour offset in the winter, which reverts to normal in the summer months. 🕔 What Is a Trading Session? A trading session is a period of time that matches the primary daytime trading hours for a given locale. This phrase will refer to different hours, depending on the markets and locations being discussed. Generally a single day of business in the local financial market, from that market’s opening bell to its closing bell, is the trading session that the individual investor or trader will reference. The markets for forex, futures, stocks, and bonds all have different characteristics that define their respective trading sessions for a given day, and the primary trading hours naturally differ from one country to another due to contrasting time zones. Trading session hours can vary by asset class and country. The regular trading session for U.S. stocks starts at 9:30 a.m. and ends at 4:00 p.m. Eastern Time (ET) on weekdays (holidays excepted). These times are primarily driven by the working hours of the New York Stock Exchange (NYSE), which closes early at 1:00 p.m. ET on several occasions throughout the year associated with holidays. The regular weekday trading session for the U.S. bond market is 8:00 a.m. to 5:00 p.m. ET.3 Futures markets, meanwhile, have different trading hours, depending upon the exchange and the type of commodity being traded. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
Market sessions and liquidityVolatility is a measure of how much a market moves up and down over time. It's an important factor to consider when trading, because it can have a big impact on your profits (or losses). Liquidity is another important factor to consider when trading. It refers to the ease with which you can buy or sell a security. A liquid market is one where there are plenty of buyers and sellers, and prices don't change too much. A illiquid market is one where there are fewer buyers and sellers, and prices can change dramatically. So, what does market volatility tell you about its participants? Well, it can give you an idea of how confident they are. If a market is volatile, it means that participants are constantly buying and selling, which can be a sign of confidence. On the other hand, if a market is relatively stable, it may mean that participants are content to hold onto their positions for a longer period of time. Volatility can also give you an idea of how informed the participants are. If a market is moving up and down a lot, it means that participants are constantly reacting to new information. In contrast, if a market is relatively stable, it may mean that participants have a good understanding of the underlying conditions and aren't as easily swayed by new information. So, what does market liquidity tell you about its participants? Liquidity is important because it affects how easy it is to buy or sell a security. If a market is liquid, it means that there are plenty of buyers and sellers and prices don't change too much. This can be a sign that participants are confident in the market and expect prices to stay around the same level.
Education
by RobinhoodFX
Timing when day trading can be everythingTiming when day trading can be everything In Stock markets typically more volatility (or price activity) occurs at market opening and closings When it comes to Forex (foreign exchange market), the world’s most traded market, unlike other financial markets, there is no centralized marketplace, currencies trade over the counter in whatever market is open at that time, where time becomes of more importance and key to get better trading opportunities. There are four major forex trading sessions, which are Sydney, Tokyo, London and New York sessions Forex market is traded 24 hours a day, 5 days a week across by banks, institutions and individual traders worldwide, but that doesn’t mean it’s always active the entire day. It may be very difficult time trying to make money when the market doesn’t move at all. The busiest times with highest trading volume occurs during the overlap of the London and New York trading sessions, because U.S. dollar (USD) and the Euro (EUR) are the two most popular currencies traded. Typically most of the trading activity for a specific currency pair will occur when the trading sessions of the individual currencies overlap. For example, Australian Dollar (AUD) and Japanese Yen (JPY) will experience a higher trading volume when both Sydney and Tokyo sessions are open There is one influence that impacts Forex matkets and should not be forgotten : the release of the significant news and reports . When a major announcement is made regarding economic data, currency can lose or gain value within a matter of seconds Cryptocurrency market s on the other hand remain open 24/7, even during public holidays Until 2021, the Asian impact was so significant in Cryptocurrency markets but recent reasearch reports shows that those patterns have changed and the correlation with the U.S. trading hours is becoming a clear evolving trend. Unlike any other market Crypto doesn’t rest on weekends, there’s a drop-off in participation and yet algorithmic trading bots and market makers (or liquidity providers) can create a high volume of activity. Never trust the weekend’ is a good thing to remind yourself One more factor that needs to be taken into accout is Blockchain transaction fees, which are responsive to network congestion and can change dramatically from one hour to the next In general, Cryptocurrency markets are highly volatile, which means that the price of a coin can change dramatically over a short time period in either direction The Bottom Line The more traders trading, the higher the trading volume, and the more active the market. The more active the market, the higher the liquidity (availability of counterparties at any given time to exit or enter a trade), hence the tighter the spreads (the difference between ask and bid price) and the less slippage (the difference between the expected fill price and the actual fill price) - in a nutshell, yield to many good trading opportunities and better order execution (a process of filling the requested buy or sell order) The best time to trade is when the market is the most active and therefore has the largest trading volume, trading all day long will not only deplete a trader's reserves quickly, but it can burn out even the most persistent trader. Knowing when the markets are more active will give traders peace of mind, that opportunities are not slipping away when they take their eyes off the markets or need to get a few hours of sleep You are kindly invited to check the script that helps to identify market peak hours : Day Trading Booster .
Education
by dgtrd
23
Best Session to Trade - At a glance!Market Sessions Introduction Watching the market 24/7 is completely unnecessary, considering price only moves during certain periods of the day. These periods are known as "Sessions" and relate to an exchange's location on the planet. The two most popular sessions - London & New York - typically see the most volatility and gross number of trades placed. However, there are strategies designed around specific sessions, such as the "Asian Breakout", which targets the first two hours of the Tokyo session. The sessions occur every trading day (M - F) during the following UTC times: London: 0800-1600 New York: 1300-2100 Tokyo: 0000-0800 Sydney: 2200-0600 The London and NY session overlap for 3 hours - this is known as the "Golden Window" in Forex trading...but why? Advanced Forex Session Analysis I created a tool to explore the concept of the "Golden Window" and answer a few burning questions: did every asset have the same golden window? if the golden window shifted, could you detect it? does restricting trading times to the golden window improve win rate? what does the golden window even look like? This tool is available for free and open source - Advanced Forex Sessions It scores each session by Volatility (ticks moved) and Volume (number of trades placed), then displays the windows on chart. I've discovered answers to a few questions and can confidently say, NO, not every asset has the same golden window. In fact, nearly all small-cap cryptocurrencies have a golden window during the Tokyo or Sydney sessions. YES, we can detect the window shifting by scoring each session via a rolling average. MAYBE, it's hard to say if restricting trading times will work for every strategy, but I have seen minor improvements for traditional strategies that buy/sell with fixed take profits and stop losses. WHAT does the Golden Window look like? Check out the Advanced Forex Sessions indicator and see for yourself...
OANDA:US30USDEducation
by DasanC
2
RISK MANAGEMENTHad some spare time today so decided to backtest my strategy. As a day trader, I try to minimize risk as much as possible, and if it's one thing I learned this is the way you stay in the game. It can be frustrating leaving money on the table but equally frustrating being stopped out for a loss. I normally take 2 trades a day or add to my position if I can find something. What I like to do is move my stop to breakeven or understructure to protect profit. I'd rather be stopped out for breakeven rather than it hit my stop but this is not always the case if it needs space to breathe before it starts going into profit at which case I might get stopped out for a small loss. As the trade progresses I move my stop under the previous wick or sometimes the body locking in more profit on the way. I DON'T LIKE TO GIVE TOO MUCH BACK ONCE I'M IN PROFIT BUT THAT'S JUST ME. Always remember Discipline, Strategy, and then risk. Good luck with your trading.
Education
by hyperspacefx
The Secrets to Forex & the Boydian Theory of CompetitionI'm assuming if you got this far, you might be smarter than the average Yahoo commentator. No need to rejoice, dear Gulliver, we're still in the tutorial. I have specifically designed this article to be long and heavy, hopefully to demoralize you out of intra-day trading. However, I know that for those who live outside the expected plot, demoralization doesn't work. It's expected that dumb people will make dumb decisions. But oftentimes, smart people make the dumbest decisions. So here it is, a guide on how to make that dumbest decision a bit more survivable. Fortunately, we have the lessons of millions of losers to draw from. Corpses that tell a story. ------------------------------------------- Intra-day is a horror many glimpse but few manage to survive. The chaotic, turbulent, uncertain darkness of the lowest levels of the market are, to be honest, not for everyone. The vast majority of you reading this should not be intra-day trading. Why? Because I don't want to see your net worth (and lifeworth), sucked dry by the vampires in the hellscape. It is the hardest difficulty a retail trader can play the forex game on. You need to sink 1000s of hours into the craft, often as a fruitless exercise in geometry and color. There is no decisive path through this battlefield, this eternal competition. All edges decay. But there is a silver bullet. Just one. And if you know how to polish it, no amount of sulfur will get in your way. Part 1: It's Strictly Business The US military is a big organization, arguably the wealthiest and most powerful out there, as far as we know. A lot of people are paid to think about strange problems or prevent unfavorable events that probably wouldn't happen anyway. They are also paid to figure out how to make things cheaper, more efficient, more interoperable, more redundant, more lethal, more accurate, etc. It's not so different from your typical US30 business. You just trade the profit motive for organized violence (not-in-minecraft kind) and the shareholders for citizens. Powerful men who are responsible for other people are rarely different, despite what the movies and media might tell you. The front of the shop might look different, but don't be naive Kay, the survival motive is the same. So what risk management or market lessons can we learn from this controversial type of big business? What about those guys that think about strange problems? Every once in a while, someone comes up with an interesting idea. And no, I'm not talking about what you or your fellow estronauts think about on discord. Part 2: Patterns of Conflict Col. John Boyd developed the OODA loop theory from a basic white paper called: 'Destruction and Creation' and various presentation decks like: 'Patterns of Conflict.' And while I have an autistic tendency to make military-to-market analogies, it's not important to dive too far into these. Basically: risk and strategy development are cutting edge in the military domain, where the stakes and budgets are highest. And then, oftentimes, it trickles down into lower stakes arenas, like markets or sports. I could write a book on it, but alas, I have better ways to make money. Now, his works were publically obscure but privately influential, eventually their reach extended from military strategy to business and market strategy and even to cybersecurity and legal strategy. Boyd's cycle time management, his observe-orient-decide-act or OODA loop, in particular. It is a simple concept at first. It's so simple it doesn't really seem like an 'invented' idea. It's like processing power in a computer, or latency with an internet connection. If we can do things faster... our process of development, that is making mistakes and correcting them to 'get better,' also speeds up . An AI running a neural net is similar, it makes a lot of mistakes, maybe more than a human would, but because it plays so many games at once or a single game extremely fast, it eventually evolves to defeat humans in the form of competition. If it gets fast enough and far enough ahead or interferes with the processing speed of the opponent, something magical happens. It makes moves we see as 'chaotic' or 'confusing,' which usually end up as traps or baits to draw in the opponent, in retrospect. OpenAI and AlphaGO did this all the time. Eventually the faster equation of mistakes and successes will overcome the equivalent slower equation utilized by our competitor. Three options. /1/ You can make your process faster through technology or intellect, /2/ you can slow the opponent's process down through confusion or force, or /3/ you can do both according to Boyd's theory. The first option is our limit as traders. As far as retail FX trading is concerned, that is as much of the theory that can be applied due to the lack of boutique data feeds from prime brokers and the nature of the market (and law) itself. As an institution, you can go further. You can load up on computational resources, get closer to the source of the exchanges/interbank transactions to reduce latency, scalp top talent away from competitors, produce FUD in the media (the purpose of CNBC), etc. In fact, in other markets with other tools, by applying the OODA loop you could abuse the order book and confuse and bait the HF algo strategies. Do this well enough and you just might start a flash crash. Front-running, spoofing, layering, and others were second-order techniques of applied OODA loop strategy (those 'overpowered' methods are now banned). It was a trillion-dollar lessons-learned exercise. Part 3: A Strategy for the Weak But the idea is too widespread and too evasive to be killed off by a few unethical and abusive strategies. It's like the scientific method reformatted into a competitive/survival environment. You could argue its two or more scientific methods in contest with each other, with a game theory like logic balancing outcomes. A competitive decision cycle. Virtually every successful business uses a derivative or parallel version of cycle time management. A parallel version of it was developed as the Shewhart cycle, and inspired production theory in Japan that would eventually revolutionize manufacturing for a globalized, value-added world. And of course, it wasn't just tested in the field of profit, but in the field of battle, where competition and risk management is a matter of life and death; which are very expensive affairs. It would underpin the design logic of all future combat aircraft. It led to the swift and decisive victory in Gulf War I (the only swift and decisive victory any conventional military had after WWII). It was built and inspired by the central lessons of thousands of years of warfare 'upsets.' It's success, its value, is self-evident by it's wide adoption in competitive fields and by competitive entities. It's now synonymous with the idea of a "lean victory." When we talk about the resource called Time and the resource called Information, the OODA loop is about managing these to competitive excellence while disrupting your opponent's management of those resources. So why wouldn't we also apply it to trading? Part 4: Fast Transients Personally, what I like the most about this theory applied to markets is its crossover with technology. Competition normally happens at the speed of thought, and technology is a type of thought machine (it translates thoughts). Technology is inherently synergistic precisely because it improves calculation time, observation time, and the overall speed of the cycle itself. Technology is always improving these things, so the theory gets stronger over time. This is also why, for your intra-day future, you need to have time and/or money set aside for R&D, so you will be on top of new indicators or trading technologies. It's also why, in the long run, using algos to assist in your trading efforts will likely be very important, primarily for intra-day. I use a comprehensive algo-run dashboard to manage my intra-day positions. I spend a lot of time on counterparty analysis*, it's the 'unit of analysis' in a market competition from a scientific perspective. It's what shapes my broader market theories that manage my portfolio beyond forex. Reducing it down to something simple, how the human mind works in a competitive environment, the psychology of profit-seeking. Is what I have been mentioning throughout the entire series. Who is buying this shit, why is someone selling me this shit, what are these boomers thinking, how are they making money, what is influencing their decision-making... Etc. But technology changes that. It's another brain, another filter. The market war is far less human than it once was, but the biases from humans are still plugged in, the humans in the loop. Or, are they? *(and if you followed GME, you would see the idea of punishing siloed short counterparties independent of absolute stock valuation has become popular in the retail world) Today, just like your social media, the market is filled with less-than-human entities, monsters... vampires. Not just because of technology doing the thinking and trading, but because of how it influences the human mind to favor commodifying everything and thereby justifying dehumanization. It is a very dangerous process at the forefront of our increasingly unsatisfactory and disenfranchising materialism-driven world. I'll talk a little about that in the last article where I explain the Pigovian-like risk you inherit as a trader. Part 5: Entity List Now, unfortunately, because trading is a many many player game, and most of the biggest players have fiduciary responsibilities (on paper, which isn't worth much these days), it is hard to take full advantage of Boyd's method unless you have access to higher market-level data and access to massive resources like a corporate entity. For the rest of you, you will have to translate the competitive environment into units of analysis or battlefields to survive. Sessions become battlefields, newsflows become battlefields, pairs become battlefields, etc. You will compete against entities in these battlefields. The moment you enter into the market, this plane of materialism, you are in competition with these entities, both real monsters (other real players), and synthetic monsters (algos, AI, MM). Risk management is impossible without accepting this truth, that you will always be in competition in the market, no matter how large or small or where you positon may lie. You can't hide from the fight, you can't wish it away, you can't pray its fangs are small. You can only prepare for limited certainty and adapt to unlimited risk in the long run. That way, when you do get scared, it'll be over the size of your new house instead of a strange French accent over the phone. Intra-day is the application of everything laid out so far, with the addition of the Boydian time cycle method and important psychological revelations about sessions and open interest. This method pushes your trading timeframe into as short of a unit of time as reasonable, or fast enough to be competitive against your peers. The better application of your time resources. It also demands the observation/gathering of information resources as widely and as quickly as possible (Boyd's rapidity and variety). And ultimately the processing of these two resources synergistically. This is the rapid transient mindset. It's increasing your initiative as a capability. You wouldn't spec a character in a turn-based game that gets fewer turns. You want more turns per encounter. In this sense, the familiar forex conclusion is something like a fractal. Where you are looking for a similar occurrence but on a smaller timeframe, allowing you to act earlier and more often on information. But that isn't entirely accurate. I used the classical mechanics vs quantum mechanics example in the 3rd article. Classical is more structured and stable, while quantum lives and dies many times before producing something significant (or maybe its really a matter of frame of reference). The point of intra-day is similar, you want to take advantage of the uncertainty, the volatility, as possible preparation for a long-term outcome. You want to think of these timeframes (15m, 5m, 1m, seconds) as FASTER, not smaller or lower. Think faster. Everything is faster, and that includes you. If it sounds hard, it's because it is. You're only human after all. Part 6: Entropy Investments You are looking for the possible start of a CPG/EX/FLOW/SEA event, AS EARLY AS POSSIBLE. That is, on the higher timeframe the process will play out, but the purpose of moving to faster timeframes is to jump in on these 'potential beginnings' because if you jump in the potentials as early as possible your risk/reward is highly dysgenic. In other words, you will have a lot of losers, which is a good thing. Remember, openAI plays more games and has many more stupid lost games than a normal player would. Let me explain this in a way where risk management meets my energy ecosystem concept from the prior articles. With an equilibrium system, you will have a higher loser frequency of trades (the number of trades) with small individual account loses, while earning a lower winner frequency of trades, but the ones that win will win big. In equilibrium, it will all balance out to a net account zero before fees and commissions between traders with edge and those without. However, markets allow competitive systems within the master ecosystem. With competitive edge, you will have a high loser frequency of trades, with even smaller losses, while maintaining a few very big winners, similar to the 90/10 rule in boomer investing. In other words, your trading system must facilitate an environment where you can lose many of your trades while still capturing significant moves on the few upside wins you entertain. That is the endstate I have found to be most valuable for intra-day trading. It's the silver bullet of return patterns. You can have a small account size, your downside risk is smaller (compared to long-term trading), and your upside potential tracks daily volatility more effectively than long-term trading ( we will talk about specific RR ratios and RoR based on Monte-Carlo simulations in the next article). The closer your trading system tracks volatility, generally the more profit you will make IF your strategy is competitive. Inversely, what is more predictable = is less competitive, and the potential for edge generation is harder to fulfill. Remember, the Ecosystem Tycoon stands still and dips his hand into the flow of cash transactions. You will profit most where the flow is strongest (the most volatile and liquid). For instance, if USDJPY starts the week at 110.00 and ends the week at 108.00, it moved 200 pips on your competitive long-term tradng strategy. But with intra-day, it may have moved from 110 to 111 on Tuesday and then down to 108 by Friday. That volatility (400 pips worth) can be turned into more profit, AND, with proper risk management, involves lower account risk per trade. Despite the pair pip movement outcome being the same as the weekly long-term strategy (IE, where it started on Mon and ended on Fri). Note that the long-term account risk differential with intra-day can be reduced with currency options and futures, which we will visit in the next article, but it is hard to replicate the gross available pip totals from intra-day trading because European options were designed for multi-day strategies, along with other issues. Capitalizing on volatility sounds nice, and operating on faster timeframes to capture that volatility sounds nice, but how do you analyze any of this? How do you find the optimal (competitive) periods of volatility, how do you track the swings for more pips, etc? You could try some thinking on your own, or you could keep outsourcing your thinking to me. It's okay, most people do it, just look at Reddit. Part 7: Openly Interested I have found through my own research that session psychology is just another way of classifying structured open interest and volume behaviors. I mentioned prior that counterparty analysis was important to understanding the market from a scientific and competitive standpoint. Open interest behavior is a component of counterparty analysis. It is the magic to intra-day that carry interest is to multi-day. Problem. Technically open interest isn't measured by most brokers in the FX market, but it does exist somewhere because forex is a derivatives market with a futures and commodity market. To understand open interest: it is a measurement for the occurrence of multiple investors or entities converting cash into new market contracts or settling those contracts back into cash. In other words, it's how many contracts have been created via cash. It's like going to the casino and converting your money into house chips for gambling. When those chips are 'created' open interest is created. So if players created 100 house chips for the day, then the open interest is 100 for that day. They will all have to be settled by close of business (brought down to 0, because chips cannot usually leave the casino). When those chips exchange hands between players, volume occurs (the occurance of transactions between players). So all the instances of one player losing chips to another player during poker count towards the volume total (which will usually be greater than open interest). Keep this explanation in mind (and refer back to the Ecosystem Tycoon article) when I explain sessions from a human psychology standpoint. Part 8: Session Psychology Each session has a psychology, this is one of the 'secrets' to forex I find to be significant and relatively underexploited despite being self-evident in the trading universe. Entities within the NA session, entities within the EU session, entities with the ASIA session; they all possess patterns of behavior that result in price action outcomes that are consistently predictable. In my review of the topics, these patterns come from psychological biases tied to civilizations and institutions. With civilizations, the majority of consumption/import nations exist in NA and EU (current account deficit bias), and the majority of saving/foreign investment/export nations exist in Asia (current account surplus bias). (Keep in mind that this is changing a bit with AUD as a vassal currency for CNH/CNY, but not just yet.) This impacts the flow of money and risk-taking behavior at the market macro level. It creates a market-driven partially by psychology at the highest level. Momentum patterns are more common during the EU/NA overlap, while ASIA is correctional (mean reversion) but often overcorrects (or anticipates) and withdraws to wait for EU to start. EU (mainly through London) fills large positions and take substantial bets on the overall market outcomes for the day (which occurs when NA comes online, or if they receive enough information about global macro to preempt NA coming online). It's like buying at par value and hoping to sell at premium. If the bet is correct, the forex pair will have a significant (usually 70-110 pip move for the day), if the EU bet is incorrect, there will be sharp reversals until NA produces enough information clarity. It's important to think in terms of cash flow as open interest and vice versa. When the NA markets open, the stock market and other major asset markets open as well, these need cash to facilitate transactions. Credit, risk, leverage, and other major financial currents move during the business day. The financial economy operates under somewhat traditional office hours and this includes the release of performance reports or audits which will influence valuation, legal events, and dealmaking. Most importantly, Jerome Powell and the rest of the Federal Reserve are awake and plotting the death of the US dollar. As a result, the movement of these markets more accurately tracks the overall economy, the underlying, and the biggest demand economy in the world. As a result, currency directional bias will usually become clearer and more stable as it now has a reliable reference point from these flows. This is partly why you see stable and smooth trends during this period. The NA session isn't just another session with its own quirks, it's the demand session of the global market 24 hour cycle. Most price action up to that session is just prediction or anticipation of how the demand session will interpret global macro events. Of course, there is still plenty of money to made during that price action\ prior to the NA session. It is important to understand that it's not as simple as LONDON BREAKOUT, though this the right line of thinking. Trading strategies need to match each session's behavior. And from a higher standpoint, that the opportunities to enter long term trend-based trades are found in the NA/EU overlap, while reversals and compressions are found in the ASIA and LON session periods. Both at the intra-day level and for your multi-day strategies. In addition, during ASIA/LON, the center of price gravity and its extremes will be more valuable; but FLOW and SEA will be more valuable for NA/EU overlap. So your momentum/breakout trading will work better during EU and especially with the NA/EU overlapped session, while your reversal or DCA etc strategy will perform better during ASIA and into LON. Now, you want to think of the transition between sessions as decision points, where the behavior of the upcoming session will have to summon the collective decision-making of market participants to decide on the course of action. So if you run a reversal strategy from ASIA/LON you can expect to hold (usually 8-12) until a decision is made on whether the price will return to the center of price gravity or if a NA/EU trend will begin (these are the 150-300% ADR events usually driven by huge macro stories like CBs/stimulus/brexit/tariffs that ride a lot of newsflow). Thus you need to be abreast of outside influence on the minds of market actors to evaluate if you close your position in that 8-12 window or if you hold for a huge reversal opportunity during NA/EU (a reversal due to the start of a new major trend). Normally, the ASIA/LON period will contain a correction related to the prior day's NA/EU session or will have a mini-move and subsequent correction before 8. In this decade, there will be new economic challenges for the eurozone and the ECB, so the EU standalone market session may develop new behaviors and we might see more volatility. It's important to understand the shifting behaviors of these sessions as macro and geopolitics shapes hearts and minds. All this surface area can be hard to follow, so here is a summary below. Part 9: Execsum The endstate is finding and translating forex order flow into patterns, and then generating edge by reading and reacting to those order flows faster than the tail end of losers. It is pit sentiment or floor dynamics as best represented on a chart, a type of 2D battlefield. The endstate goal is an operationalized effort drawn from the Ecosystem Tycoon analogy. Here are the major themes and connected key concepts within that endstate: Open interest demand mechanics = vol & compression regime mechanics Open interest is created by outside 'viral' vectors grabbing the attention of investors (people with cash interested in the market) and when sentiment is shifted within that cohort (who are now interested in opening long contracts or short contracts) Open interest can break a compression regime by spoiling a careful equilibrium between traders currently in the market. They were formally in a balanced position until new cash tipped the scale. Open interest can create strange PA behavior resulting in new trading performance risks from high ATR and vol. OI is understandable only through the lens of newsflow and macro research related to the viral vector influencing investors; thereby making it a significant threat to technical systems dependent on historical PA information. However, at the start or end of the business day (regardless of rollover), open interest is commonly settled and the contracts are closed and converted into cash. That money or energy leaves the price discovery system and the instrument usually returns to lower volume after finding an equilibrium. These cycles are predictable and occur within the session unit of analysis. They also have different behaviors by session. These mental frameworks are necessary for effective vol capture, especially at intra-day resolutions. Tailoring or selecting technical systems to match session behavior and the open interest driver maximizes potential vol capture. Now, there are few more important tools and methods you need to have to stay true to a Boydian trading strategy at the intra-day level. Part 10: The Crafts There are other important points, particularly regarding technology and how to improve your trading speed. Follow these crafts and at the very least, you will have a chart checkered with good and bad outcomes. Instead of just all bad, like your default life setting. VPS, and a backup instance of your broker on your phone (with a data subscription). This is insurance that pays off in the long run. Now, it won't matter too much unless your intra-day strategy is fully automated (which I don't recommend anyway). Either way, phone backup is useful. Position management and style is also key from a Boyd perspective. Particularly, the importance of splitting a position up into multiple entries. AT LEAST 2; a conservative TP and an aggressive TP. Personally, I like to use a statistically derived TP (like a common ATR/momentum hit dependent on the pair, IE 9 pips on the EN versus 4 pips on the EU), I like to use a covariant-like technical target (S/R level, psychological level, the center of price gravity, etc; in other words, a combination of technical targets with similar natures) and I like to use a TIME based target (closing towards the end of a session or after a scheduled event occurs). I recommend a combination of all or at least 2 of the three. In addition, utilizing order implementation algos can go a long way in this effort. Not as important for the multi-day traders, algos increase your entry and exit optimization with technology (Boydian considerations) for intra-day trading. In fact, this was the original inspiration and justification for algos, to assit in the efficient use of bid/ask (pit dynamics) for the heavy bags of wall street. Your SL should be consistent with the session, strategy, and pair. Ideally based on ATR, but I would recommend an SL at least twice as large as your conservative TP. I will explain the risk logic of this in the next article and how it can be more profitable than the inverse. Finally, you need to be willing to use MARKET orders. There is no reason to not use market orders in the most liquid market on Earth. Unless you are trading 30 lots or more in a single order entry, you will not influence price unfavorably. In addition, if price slides or moves.. this is good, this behavior is good for your strategy, which should be based on volatility tracking and capture. Speed is paramount, you can't wait around for hours to have an order fill at your dream price level. As such, LIMIT has less value depending on your strategy, but it can serve a purpose with forward planning a large position. STOP orders make sense for SL exits but not for initial entry. If you don't want to manually close your orders or you have way to many orders to manage manually, you will need an algo dashboard or a trailing algo SL. Remember, that a third party algo is effectively a system that creates virtual orders, they are not a broker order like a market or limit until the final step of the process. You are solely liable for the operation of the algo. Other order types are irrelevant without prime broker access and are really only useful in the share market or markets with low volume and hidden LPs. Leverage should be used as a exponential for conviction. Meaning, the better your system or prediction, the more money you should be willing to risk. This will be discussed in greater detail in the next chapter, but forget everything you have heard from the webinar retail salesmen and their 2% margin religion. Leverage is favorable in forex because retail traders (and common people in general) cannot get leverage of a similar degree for other assets , or to be honest, anything else. This is very important from an investment standpoint. Your principle goal as an investor is to increase your purchasing power, and leverage is one of the best tools to achieve this. However, you must never forget the other ancient boomer wisdom. "Only 3 things can ruin an honest man: ladies, liquor and leverage." I would also note that they all start with an 'L' Part 11: Newsflow Again As mentioned in a previous article, news trading might be best achieved with binary options, but otherwise, you want to open prior and close after. At least TWO minutes of distance both ways. If the news is a surpise, price can move forcefully for the next 4 hours or until the end of the session. I would also recommend opening a LONG and SHORT position of equal sizes instead of utilizing a stop loss (if your account supports this capability). The idea being you would close them each in profit during the volatility spikes in price action or simply close at a later point at a net zero result if volatility does not occur. That would be the Boydian approach. IF this isn't an option due to some FIFO issue with your broker (you can always bypass this with multiple brokers), just use a smaller position size than you normally would, and increase your SL to something substantial (80 for low ATR pairs, and 120+ for high ATR pairs). I don't recommend this final option unless you are accomplished in reading and understanding the global macro eventspace. As mentioned in the Happening Default Swaps article, news trading really only makes sense for taking profit and/or exiting an older position. It is rarely wise to use it to open new positions, despite the volatility potential. You don't want to be all flow and no balance. Data feeds matter. Information processing speed, etc. You need the fastest sources of info, you need it processed (ideally by specialized experts). Processing it yourself is fine if you are very familiar with the content. You may have to pay money for this, but it will generally be worth it (especially in time-sensitive intra-day) from a risk management perspective. It's like hiring an expert. You aren't a corp, but you can get the 'consulting' value from these experts (at a much cheaper price). Dont go chasing sources that are repeating other sources, it can present added value of knowledge but it's really just disguised as redundent information. Just go directly to the source. And not the one at the center of the galaxy. Part 12: Outsourcing research A psychological edge you need to have is the willpower to conduct your own 'capex' or development on a consistent schedule. The more you do, and the higher quality it is, the greater edge you will generate in market capture knowledge. Your ability to dip your hand into the flow of cash. While this isn't limited to intra-day, intra-day is where the market evolves FIRST, and often at the fastest rate. Thus you need to mindful. Always looking for better versions of indicators you possess. Or ways to set SL more efficiently and accurately. Or selecting better data feeds or newsflow sources. Most of what we've covered so far is more abstract than the average fluoride brain would hope for. That there must be a signal service, or an indicator, or some universal function that can be realized into a specific technical system. The reality is more of a mindset and an assumption that you need to spend more resources on upgrading your 'technology' and your 'time-management.' And that the sessions themselves are excellent units of analysis to apply the time-management and decision-making initiative because of open interest dynamics. How do you study or gather information about the current or upcoming session more efficiently? How do you execute orders more efficiently? How do you become faster? The more information you have and the faster you react to it, the more money you can withdraw from the trillion-dollar liquid market bank account. To explain it in factor investing terms, the Boydian mindset is the key to vol tracking and vol capture, which is what intra-day offers. You want to ride high volatility profitably or at least react favorably to high volatility better than your competitors. To summarize the rest: sessions have vol behaviors, predictable, but not predictable enough that they aren't also competitive. Driven by vast macro psychological and market influences, these patterns will occur again and again. You can build a strategy to match each session if you trade intra-day, but you must be faster in action and faster in information processing. Your positions will live and die many times before a long term position may exist in the market, so adjust your risk management accordingly. You can use your intra-day strategy to leverage into a long term position. It's really that simple. I offered the behavior/psychological solution (the assumptions about session behavior), and a few other specific solutions to make your time and decision intersect more efficient. But there is always something better on the horizon. And you need to chase it if you want to stay competitive, and therefore maintain edge; which is your career margin of safety. You shouldn't get too greedy, because hogs get slaughtered. Unless of course, we're talking Orwell's farm. Part 13: Silver is for monsters Listen, little Helsing, intra-day trading is all about surviving the flood of spectral horrors in the night. It is the true nightmare difficulty of this market game. These vampiric entities in the market are monsters both in scale and in appetite. They operate on attrition and superior firepower; a strategy you can never replicate or use against them as a retailet. They are immortal in that regard. Some are soulless institutions, others are lifeless algorithms. And, even if your spirit is strong, your flesh is still weak. They will take everything from you, without even recognizing your face, your effort, or your dreams. Though some, I presume, are good people. I want you to remember on your intra-day journey, if you eat, eventually you get eaten. That's the rule. Ultimately, this kind of flat and shrouded market takes what would normally make someone regret or question his behavior, and removes it from the equation, masking it as invisible and out of the way. It's a distortion. It's a spiral of dehumanization. It makes it easier to ruin people, who could be as relatable as your brother or your neighbor. That is the tragedy of this efficient flat competition. You will be on the recieving end of this story more often than not. That is why I arming you as best as possible, so that, at minimum, you can defend yourself against these vampires. Your silver bullet is the applied OODA loop, the market-realized outcome of maneuver warfare, the competitive management of time, information, and decision making. In essence, it is a strategy for the weak to win against the strong. In the first place I would never recommend/promote a battle like that. I have a nonzero responsibility for your success or failure. But off the record, if you choose to play on this difficulty, I strongly recommend you wait for my final article where I discuss benchmarks and 'grand strategy' before you go all in. No need to be impatient, trust me. The monsters on the other side of the screen will wait for you.
INDEX:BDIEducation
by CountofCoins
2
My Trading ScheduleThere's no a "best time to trade" but this is what fits best to my lifestyle and I want to share it with you :) I took into consideration the different Major Sessions such as LONDON, NY, SYDNEY and JAPAN's. This are the best times to trade FOR ME. The Turquoise boxes are the time for the entries I'm looking for. The Grey box is my time for sleep And the Color boxes are just representing day by day activities. I made it on the 15M timeframe but my chart is on Mexico City Time (UTC -5) and also the Hope it's usefull. Regards.
Education
by CharlyJimenezHernandez