I’m trying to build a strategy and I can’t decide at what time is best to stop trading for the day. I have developed my own short term / intraday strategy and am just wondering what the general consensus is - Do I stop trading when I hit pre-determined targets (for both profits and losses) or do I decide to trade all of the opportunities I see between certain hours?
Can’t decide what to do, any input would be great.The first strategy is more risk averse I guess.
Be more specific, do you mean stop trading your strategy? Well look at time of day and volatility to determine the best times of day to trade, avoid the other times.
Do you mean money management? then when you hit your daily loss limit. I don’t believe in profit limits, but there should be a point where you are so far into profit you won’t have a losing day (think trailing stop).
You have multiple strategies I assume by your phrasing, so maybe you need to see how they work together first before deciding which ones will have priority. Assuming they trade the same instruments.
Why would you stop trading? Unless you have a very specific reason to stop (e.g. falling volatility outside London/NY), then don’t stop. Trade 24/5 if your system is tradable during all hours.