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Volatility advice

Discussion in 'General Forex Talk' started by cowmadagan, Jan 20, 2010.

  1. cowmadagan

    cowmadagan Sergeant

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    I read somewhere that it's a better idea to trade only on Tuesdays and Wednesdays because they have higher volatility and thus you won't lose money.
    That's what they say, and not what I say.

    I tend to do well on Fridays too, but what I really want to know is does any one else here find that to be true? Tues, and Wed, or lose money? Maybe it's cuz I scramble to find the trend too much so I botch those days (not today) but is it only for longer term traders?
     
    #1 cowmadagan, Jan 20, 2010
    Last edited: Jan 20, 2010
  2. Music Man

    Music Man Corporal

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    That depends on your trading strategy, I think.

    What's more important than the day of the week is how the market is acting. If I see a consistent 10 pip range in the Bollinger Bands, that's trade-worthy for the bot, but not volatile. I have other bots that actually work best when the market is flat.

    Friday is the exception, because you don't want to leave intra-day positions open over the weekend, due to the risk of a price gap against you and the fact that anything could happen to change market direction in that time. If I trade on Friday, it's usually cleaning up positions left over from Thursday.

    Anyway, more volatility can cause you to lose money as easily as make it. :)

    MM
     
  3. Pharaoh

    Pharaoh Colonel

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    It's not volatility, but volume. More money typically moves on those days, so there's more liquidity in the market. This (hopefully) reduces slippage and requotes.

    Anyone got stats on trade volume of the majors vs. day of the week? It would be interesting to see if the trade volume difference is huge or moderate.
     
  4. ernest8fingers

    ernest8fingers Master Sergeant

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    the Bradey Bunch

    I find one the most consistent plays I seem to get away with is trading on a Friday. I wait for a run up(pair goes higher)and then short the sh_t out of it a few hours before market close. Seems everyone(including myself) dont want to get caught holding any open trades over the weekend. The actual Instrument doesnt matter as long as it had a good run up a few hours before. Just dont forget to bail before market close?:)
     
  5. cowmadagan

    cowmadagan Sergeant

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    I totally agree 8fingers...that makes perfect sense from what I've seen.
    As for Pharaoh, I've read that it's never approaching double, but because of seeing the numbers, if I were to pick a currency to be my girlfriend, it'd be the Swissy. Predictable as all hell, and basically an amplified version of the Euro.
     
  6. ernest8fingers

    ernest8fingers Master Sergeant

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    Interesting

    I hate that pair and the Usd/Jpy. Been burned so many times I no longer trade either pair. I ONLY trade 3 now Eur/Gbp/Aud against the American dollar. Partly because these 3 pairs are usually the cheapest pairs from any Broker and I understand their fundamentals better. The Jpy mystifies me. I havnt traded that pair in 3 years! As predicted-I sold Aud/Usd this morning at about .9055 and just like clockwork it has sunk near .9000 as I write this post-now if my TradeStation2 would come back online I could close for a profit? FXCM is having "issues" today with their log-in server/s. I am currently enjoying a Hogan's Heros marathon backed up with the music of RUSH-2112. My fun will end at 3 pm PST when the kids get home from school.Maybe I can change the locks before then?:)
     
  7. cowmadagan

    cowmadagan Sergeant

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    Dubai taught me that the JPY is just a wedge..it's actually the closest to an independent currency as it gets.
    I've seen that it just gets in the way of the Euro currencies and the USD, so if you are working the crosses, you can get completely screwed if the JPY makes a move because it destroys your hedge by separating the pair by the difference in JPY weighted value...

    It's hard to comment and be meaningful without starting from the beginning, so I'm not sure how much you've seen and noticed and how much I've concluded based on how little I've seen. IM me fingers...

    God that sounds sordid...
     
  8. ernest8fingers

    ernest8fingers Master Sergeant

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    I enjoy reading your posts as much as I enjoy writing mine! I still have a burn mark down the center of my back due to my inability to divine where the hell that currency is going. I stopped trying anyway. I am on my way to Hollywood Blvd to drink heavily-lol-and forget about FXCM's platform issues(I still have an open trade but a small one and I NEVER-until today-keep trades open thru the weekend). Be safe and post often.:):):)
     
  9. Ricex

    Ricex Sergeant

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    wow fingers that takes me back...... great album.

    First thing Sunday evening for me can be profitable gap trading and Tuesday Wednesday Thursday.

    Fridays I've found mediocre but I think I've normally had enough by then so concentration is low, if I trade it will be only the morning, then out on the bike if it's nice.
     
  10. cowmadagan

    cowmadagan Sergeant

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    That said, I'm really unsure as to whether I'm borderline profitable due to the fact that I drink and trade or if it's because I don't drink enough while trading to end up completely in the hole...I'll tell you Monday, because oddly enough I'm twice as hedged this weekend as I have been in months....too
     
    #10 cowmadagan, Jan 22, 2010
    Last edited: Jan 22, 2010

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