Best Time & Currency Pair to Trade? (My Strategy)

Trading Discussion
1

Hi!

  • I started trading on the 5 minute timeframe as a scalper.
  • Also, I only trade in uptrends or downtrends. No consolidation.
  • And I am using as a strategy “supply” & “demand”.

Based on the above, what would the best time (zones), currency pairs, etc. for me to trade?

Should I stay away from any market openings (ie London, NY)?

Thanks!
Michael

2

Hi @Michael0410 -
The major pairs have narrowest spreads so you can argue they are cheaper to trade. They also have lowest margin requirements.
Your strategy might work better with either high or low volatility pairs: in the majors gbp/jpy is a very high volatility pair, EUR/CHF very low.
Beware of trading closely correlated pairs like EUR/USD and USD/CHF and closely correlated currencies like EUR and CHF.

1 Like
3

On this time-frame trading across the major opens or closes is suicidal.

2 Likes
4

@tommor How long after opening times / before closing times (major markets) would it be more safe to trade based on my strategy?

Thanks!
Michael

5

Depends on your tactics for finding price levels for entry and exit orders. Wide spreads around these time points could trigger everything in sight and the only way to know how wide the spread goes and for how long is to watch it live.

6

If you were trading main Indices, London and NY opening times are ideal. Follow tradertom.com.

7

Thanks for sharing with me this resource! I will check it out. Thanks :smiley: