Hi everyone, Just wanted a general idea as to thoughts on the afternoon session: Preferably considering futures trading...
The afternoon can set up some nice runs into the close and even overnight, although if you are solely a day trader, the overnight aspect might not be relevant. The decision should ultimately be based on whether or not you can find a positive expectancy strategy. If you can't don't trade even if you want to. If you can, decide if you want to.
Depends on what kind of that day it is. Sometimes, when there's a trend, lunch time can provide great re-entries with the trend or can be just held through with the position initiated before that. But when it's a choppy range day, lunch time makes it even worse, so it's wise to avoid it then (for me at least).
IMO you are asking 2 questions: trading lunch and trading the PM session. I break the trading day into 4 distinct trading hours: Pre-Market, AM, Lunch and PM. You have to find how your system performs during the different sessions throughout the day. Stopping at 12pm EST is a perfectly acceptable system parameter if you find that lunch and/or PM is not suitable for you to trade. Personally I've found Pre-Mkt and AM the best times to be trading index futures and lunch/pm more hit and miss. Some days lunch/pm will lull you to sleep and other times it will be cruising. Beauty is in the eye of the beholder.
I divide up day session into three, 1st 30 minutes, 4.25 hours and into the close. Each have there own set of signals and money management rules. Lunch is actually very consistent for me but I am more of a chop trader, so on days where ES is trending hard like today, I stand aside, but once it goes sideways, tons of 1.00pt winners. The afternoon session is generally the same most of the time, time to hit the stops and run the other way, big whip. So if you a trend trader, skip lunch, if ya like small profits and chop, lunch the way to go.
thank you for sharing your real experience. I am about to give up on ES in the afternoon, as CL and 6E make better patterns for my method in the afternoon (11.30-1 EST)
During a medium/high volatility market lunchtime is some of the best trading for me. I generally avoid the last hour. Only certain days will I trade to near the last 30 minutes. It's best avoided especially on trending days. In general for me... 9:30-10am = Avoid 10am-11:30am = Good Trading 11:30-1PM = Sucks during bull market with vix under 20, good with vix above 22 generally. If there is a news catalyst to keep people on edge it can be good. It really just depends... 1PM-3PM = Good trading usually.
Do some quick statistical work on your trade method to determine if the lunchtime trading session duration is something you should not or should be trading. Yet, if you're planning to be trading as a career and want to be still trading 20 years from now... Get up, walk away from your computer and go have a healthy lunch meal. It's also great for your back, prostate and mental well being. Simply, don't sit at your desk eating lunch while watching your computer screens except for a few rare occasions.
I would during trade lunch time if I could. I gotta eat and exercise so no trading during lunch time.
I do not care about sessions, I do not trade every day, not even every week, sometimes for not for over a month. It all depends on then the signals are ignited.