Hello,
This is a quote from Ozfx’s system:
“If you choose to do back-testing then take special care for signals from late November to end of Dec. Low volume during this time of the year creates wild swings.”
This is the first time I read about volume being different during the course of the year. I’m just curious if this happens every time during this time of the year and whether there are other times that have I should be careful of because of low volume.
Thanks.
Forex is quoted as being 24/5, 52 weeks of the year, but there
are always times of low volume even in a working day.
With public holidays in Asia, Europe & the States, usually early
week, this can also cause low volume.
A look at a fundamental calendar will warn of possible quiet times.
I have been told that the month of August is slower as many European countries use that month as vacation time, esp. France. I don’t know how to really test this now but come Aug we shall see.
I know this applies to the stock market (“Sell in May, go away”, December is normally an up month, etc) but I’ve never heard of anything for Forex except days of the week having higher volume than others.
‘Yarcofin’ has ‘hit the nail on the head’ i.e. applies more to stocks (traded on the NYSE anyway). Seen it for myself (and unfortuantely about to see it again)!!! It CAN be ‘soul destroying’ let me tell you (if you trade stocks)!!!
I would alter that to “can create wild swings”. It doesn’t always happen, but definitely there are dramatic moves some years.
Yes, December is usually low volume with the holidays and traders closing up their books for the year. And as mentioned, August can be painful at times, though obviously that wasn’t the case last year. 
August huh? I did not know that but I am going to note it in my notebook. These are the golden nuggets I need to be aware of.