Trading during the summer, how do people like it? Does it change anything? Do your systems still work well?
Thanks!
The summer months don’t effect the FX markets as much as perhaps the commodities, and even in both instances the markets rarely have a drop in liquidity substantial enough to warrant a cause for caution.
The underlying theory behind this summer month phenomenon from a retail trading point of view is actually rather simple to explain too. The people who move the markets in general, more so with commodity trading, are the traders in the city. Think of Wall Street, London Stock Exchange, Tokyo Stock Exchange and then all the private corporate funds which are still with in the financial square mile of these trading hubs. Lets not forget that these ‘experts’ are also human - and what do humans like to do during summer…we like to take vacations away from work with family, friends or even alone. The point is that when these traders leave there trading desk they are not trading, hence a drop in liquidity.
Now assume all the big players take holidays in the second week in June for 2 weeks and you have a potential issue… as least that’s the theory.
Makes total sense, Thanks Jezzode!
There is absolutely no difference trading in the summertime compared to winter. Don’t follow fundies and maybe you’ll see that the market isn’t all that “unpredictable”. Get a plan, trade the plan. The only thing worth trading off of in the long run is price.
The way I see it, pips are pips no matter what time and from where. As Jezzode said liquidity will be there so just execute their strategy.
I wanted to open a thread like this, but then found this topic. For me July and August was absolute ****. I wonder what others opinion on this? Like take a look on todays price action, the majors moved all day in a 50 pip wide range. And this went on through most of the summer. Kinda starts to frustrate me.
Yea i had to use a range trading system for this summer. It was tuff and now the China crisis just adds to the mixture 
I was a little concerned going into the summer about liquidity drying up. I remember 40 pip range days from 2014 in EU. To be honest I was surprised at how logical and consistent this summer has been. I’m in no hurry for it to end.
I don’t really see much of an effect on the FX markets during the Summer.
A short summary about summer trading:
liquidity = less than during other times of the year
volatility = often more than during other times of the year
Yes, It is clear that if we are witnessing more movements in the markets it just means that the Volatility in the markets is high and if the movements are less then we can say for sure that the Volatility is less 