i’m wanting to open a live account at SVSFX. but then i just found out now that they have a different broker time and daily close.
[ul]
[li]SVSFX daily close is 8pm EST. the thing is, in a week, i see 6 daily bars in SVSFX ( 1st bar is only 3 hrs long 6th bar is 21 hr long)
[/li][li]other brokers i know like HotForex, LiteForex, and FXCM closes at 5pm EST (the New York market close). and they have 5 daily bars in a week.
[/li][li].
[/li][li]SVSFX 4hr closes at 00:00 EST, 04:00 EST, 08:00 EST, 12:00 EST, 16:00, EST, and 20:00EST
[/li][li]while others close at 01:00 EST, 05:00 EST, 09:00 EST, 13:00 EST, 17:00 EST, and 21:00 EST
[/li][/ul]
will this make a big difference in trading?
why do brokers have different time zones and daily close and why didn’t someone think of just standardizing it all?
if i were to open a live account in SVSFX, what is the best way to handle this? should i just ignore other daily closes?
This topic has been discussed several times in the past and there are two camps who can’t agree. Personally, it makes no difference to me. I trade from the 15M chart and don’t depend on the 4H or Daily charts. Others who trade only on these TF insist that the broker’s end of day must end at 5PM EST to be able to trade properly and that Sunday bars mess up their indicators. Their reasoning is still a mystery to me. I guess its a problem if you let it be a problem.
Anyway I including links to two of the recent discussions to give you an idea of people’s opinions.
Since forex markets are open for business 24 hours a day it should not make a difference. Your broker should give you access to trade when you want and I agree with CodeMeister that it is a mystery why one camp claims that Sunday bars mess up their indicators.
I simply ignore when the broker ends the day as the markets dont care about that.
What was your reason to open an account with SVSFX?
the reason i’m opening an account with them is that they have very good reviews, and they have very low spreads.
so far, they have very good customer service also.
although they have started only with online forex brokerage in 2010, they are a division of SVS securities which is listed in the London Stock Exchange which is a plus for me.
they are also regulated by FSA UK which is a big plus for me.
so i’m hoping to have a good experience with them as they will be my first account.
It does make a difference. I dont use indicators but there are 2 camps (3 if you count the one who dont care) Some say the Open should be at midnight. I like mine to close with NY as then Pacific and Asia are starting a new day. That makes sence to me. If you use indicators such as a ADR indicator I could see how a daily candle that is only open for 3 hours instead of a full 24 hrs could throw things out of wack. what charting sfotware are you running if mt is MT4 there is not much you can do. Most other charting packages will allow you to change the open and close of your daily candles. But like stated above if you trade less than the 4hr it will make no difference. I am going to assume you look at the daily since that was in your question. Then it will make a difference
I’ve adjusted my long term system to take into account the silly 3 hour Sunday bar but I guess it would mess up my ATR indicator. The system still works fine, though I might do a back test on EST charts one day to see the difference (if any). I consider Sunday to be part of Friday.
As for short term trading, I use GMT charts for intraday trading, because the majority of my trades are conducted during London open and on GBP/USD. When you place a trade, you aren’t going to move the market, you rely on someone else with a huge account to do that for you - this is a fact. This is my conjecture: where is this person located? Considering that New Yorkers are asleep during London open and London is where most forex transactions take place, my market mover is more likely to be in London. Then I ask myself, what chart is he looking at? Probably a GMT-based chart.
I rarely place a trade during New York open but if I do I like to consult both EST and GMT based charts. Who says I can’t eh.
It really depends on what your strategy is, what TFs you use, indicators etc For example if you use 1H time frames only, it won’t make a difference. If you use daily TFs with let’s say moving averages or ATR, it will make a difference. However, if you’ve been exposed to charts a while and can read and interpret them, it really makes no difference. I would advise opening a demo account with a broker that uses 5pm EST close and see which works for you. Good luck.