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4/61
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In this article, I will describe the thesis of my automated trading strategy that I made for the purpose of Dukascopy strategy contest. Trading strategy I use in this contest trades only one currency pair - EUR/USD and it does not use any indicators. The main idea of this trading strategy is derived from the trading times of the eight largest financial centers in the world that are lumped into three sessions known at the Asian, European, and North American sessions. Although the forex market is open 24 hours a day the activity in a given pair is not consistent throughout the day.
Figure 1: EUR/USD volatility
The Asian trading session is characterised by small movements, low volatility, and more binded to previously established support and resistance levels with smaller probabilities of breakouts. Due to this reason my strategy opens countertrend positions in Asian trading session. Trend in question is short-term, defined by a few hourly candles.
Figure 2: Positions opened during low volatility sessions
The European and the North American session experiences some of the largest moves in the market. The volatility hits its peak in New York City where fundamental factors drive the maj…
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9jakas avatar
9jakas 23 Sep.

Good Trading report

CriticalSection avatar

As a professional computer programmer I admire your tenacity to parley your ideas and knowledge of the markets into a functioning piece of computer code via the visual development environment. You've done a great job and must simply keep up the good work!

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4/21
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In this article, I'm going to talk about FX seasonality cycles and how they can improve your trading activity and why it should not be ignored. There is no mystery that the world is full of cycles and we're governed by them and the financial market are not exception of this rule. The majority of traders will either use technical analysis, fundamental analysis or a combination of both. But the seasonality cycles will bring in a new dimension in which you can analyse the market. The time element such as the time of the day, the day of the week, the month of the year could also play a big role in how certain FX pairs may behave. So when you focus your attention purely on price and time without the noise of indicators you may notice that some pattern shows up during certain time and this patterns are known as seasonality. Seasonality are a predictable change in price that repeats every day, week, month, year at the same period in time.
This seasonality cycles will only give you the tendency of an particular currency pair to bottom or top or rally or fall, at certain point in time. The seasonality is just an average so in this regard it's better not to use it in isolation but rather in…
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Daytrader21 avatar

Metal_Mind thanks for your insights @all thanks for your support

jezz avatar
jezz 29 Aug.

Seasonal trends are related to people habits. Even though money never sleeps, it does take some vacations, which can explain the seasonal trends. And the unreliability in post-break times can be related to late data of the industrial and similar activity during the 'low' times. I think :)

Daytrader21 avatar

jezz Long time since I've seen you around here.:) You're very much right about seasonal trends being related to people habits, that's one of the reason why I've become more interested in human psychology as well. It gives you another perspective of why people do certain things. I hope to see you more often commenting on my stuff:)

marius24 avatar
marius24 30 Aug.

one of the best article i have ever read in this contest. It seems that we have here a really good trader. Wish you to win this contest once again

psimmons63 avatar
psimmons63 12 Mar.

Very insightful article. I believe that seasonality gives traders the best edge in terms of technical indicators because its based on high probabilities. Do you cover any of the other majors?

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3/38
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Although Forex markets are open 24/7 there are certain periods of increased activity. These periods occur within working hours of different equity markets across the globe. And increased activity in Forex market reflects capital flows between all the financial markets of the world. By analyzing these periods separately trader can get additional understanding about sentiment and market direction changes which doesn't occur in charts, displayed using traditional time frames like D1 and H4. The problem with medium-term time frames, like daily (D1) and four hours (H4) is that these are calculated differently according to different time zones. I‘ve seen professional analysts/traders display their analysis with three different time zone settings for H4 time frame: GMT, EST and DST (GMT+1). Because Forex is not centralized, for every trader is up to him self to decide how to set up H4 and D1 chart to align with one of the main sessions: Tokyo, London or New York.So every time when I see a red H4 „spinner“ on the top of the swing – I‘m not in a hurry to place short orders . I‘m always checking other H4 or D1 settings (usually I check EST time zone as my trading platform is aligned with GMT…
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PPandM avatar
PPandM 30 Oct.

Nice article, good luck! +1

Likerty avatar
Likerty 6 Nov.

Daylight saving time was applied last week so now European and North american session hours changed GMT: European from 8:00 till 16:30 and North American: 14:30 till 21:00

Likerty avatar
Likerty 6 Nov.

And GMT H4 time frame candles makes more sense now as these align with European opening and with Tokyo

Likerty avatar
Likerty 14 Dec.

For any additional questions/suggestions please contact me via twitter - twitter.com/VienasEdvinas

velldes avatar
velldes 13 Sep.

Nice article. Inspired to create new "Trading Sessions or Market Hours" indicator in JStore
or read about it in my blog http://www.dukascopy.com/fxcomm/blog/?action=post-show&post_id=4705

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