fxcm-traits-of-successful-traders-guide

TRAITS OF SUCCESSFUL TRADERS: PART TWOWhen is the Best Time of Day to Trade Forex?Our tests of different time windows on theUSD/JPY, AUD/USD, and NZD/USD have notproduced a single positive equity curve overthe past 6 years. This is due to the fact thatthese currencies are more often subject tolarge moves during Asia Session than theEuropean currencies.It is worth noting that the time of day canhave a significant affect on returns in thesecurrencies as well. 24 hour trading shows fargreater losses than the other time windows.GAME PLAN:WHAT STRATEGY SHOULD I USE?Trade European currencies during the“Off Hours” using a range tradingstrategy.Our data show that during thesampling period, many individualcurrency traders have been successfulrange trading European currency pairsduring the “off hours” of 2 PM to 6 AMEastern Time (7 PM to 11 AM UKTime).Many traders have been veryunsuccessful trading these currenciesduring the volatile 6 AM to 2 PM timeperiod. Asia-Pacific currencies can bedifficult to range trade at any time ofday, due to the fact that they tend tohave less distinct periods of high andlow volatility.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19