1st Hour Trading

Discussion in 'Strategy Building' started by jones247, Feb 21, 2008.

  1. Does anyone have extensive experience (or any experience for that matter) with a technique of trading only within the first hour after the equity market opens? I understand that such a strategy can be applied to the stock or futures market. I believe that Don Bright promotes a similar strategy for his prop firm. I've come across other market advisory firms that tout this strategy as well. Statistics have proven that the daily high or low is established within the first hour of trading on more than 70% of the time.

    The biggest challenge to me would be to determine the direction of the market during this time period. I wonder if anyone has studied the correlation between the futures market and/or the pre-market direction with the indices to determine the potential direction within the first hour. Perhaps indicators, such as ADX or Stocastics, would better serve to determine the direction within the first hour.

    If you have any valuable insight or experience with such a strategy, perhaps we can build upon it in this thread.