End Of Day Forex Trading

[JTrader]

Hi

To kick off this thread, I'm interested to see a quick show of hands - in terms of gaging the number of traders/people who trade forex on an End Of Day (EOD) basis.

You may trade EOD forex alongside your intraday trading etc. etc.

If you don't trade EOD forex, is this because you havent considered it, or because you considered EOD forex, but decided that it is difficult to squeeze decent returns from EOD forex:?:

Trading only one currency pair at a time, I'd agree that it is difficult to squeeze decent returns from EOD FX. However, with EOD FX, becuase it only requires maybe 20 minutes attention 5 times per week, and a trader has the ability to trade as many ccy pairs at once as they can handle.

I reckon i can manage 15-16 pairs at the same time, based on the assumption that my approach produces a trade every 15-20 candles/days.

If you do trade EOD FX, how many pairs do you trade/manage at the same time:?:


Any other comments & opinions regarding EOD FX trading - its merits & drawbacks etc. - are welcome.

Cheers.

 

[westernforce]

Hi JTrader

Excuse my ignorance, but how does a person trade EOD forex, when there isn't an end of the day in the FX market as such, more of an end of session, Asian, Europe and then US?

 

[JTrader]

EOD FX is no different to EOD anything else. When 1 daily/H24 candle closes (maybe around 2200 UK time) another h24 candle opens. OK there is no gap between the open & close of a daily forex candle (except from friday to sunday) but the concept is exactly the same as trading stocks etc. off daily/EOD charts.

 

[Rhody Trader]

I trade EOD, EOW, and even sometimes EOM forex.

As for how many pairs I watch, all the majors and all the crosses between the majors.

To westernforce's question, basically EOD trading means trading off the daily charts rather than intraday ones.

 

[JTrader]

I trade EOD, EOW, and even sometimes EOM forex.

As for how many pairs I watch, all the majors and all the crosses between the majors.

To westernforce's question, basically EOD trading means trading off the daily charts rather than intraday ones.

Thanks Rhody

I'm hoping to be able to achieve similar overall results on an EOD basis trading the 16 or so pairs, that i would achieve trading only 1-2 pairs on an =<H1 intraday basis - with about 7.5 hours less screen-time per day (being a big bonus).

Does your EOD, EOW & EOM make up the majority of your forex trading activity would you say? Or, are they a smaller supplement to any intraday/sub-H24 forex trading activities that you engage in?

Cheers.

 

[westernforce]

So then EOD is just a fancy name for trading off the daily charts.....

One of the reasons for my not trading the daily charts, and bigger, would be the breathing space (stop placement) required to allow the trade to mature, when taken within the time frame context.

 

[Rhody Trader]

Does your EOD, EOW & EOM make up the majority of your forex trading activity would you say? Or, are they a smaller supplement to any intraday/sub-H24 forex trading activities that you engage in?

Yeah, the longer-term positions make up the majority of my forex trading. I just don't have consistent market access to trade intraday these days.

 

[JTrader]

So then EOD is just a fancy name for trading off the daily charts.....

One of the reasons for my not trading the daily charts, and bigger, would be the breathing space (stop placement) required to allow the trade to mature, when taken within the time frame context.

If spreadbetting with a minimum stake of £1 per pip, then yes this is an issue.
But if you can start of by trading mini-lots ($1 per pip), or micro-lots ($.10 per pip = 1 micro-lot) then this is not an issue.

 

[JTrader]

Yeah, the longer-term positions make up the majority of my forex trading. I just don't have consistent market access to trade intraday these days.

Thanks rhody,

it seems like we both think it is possible to achieve similar levels of P/L if trading off H24+ charts, to what it is possible to make if trading fx on intraday charts - if you trade enough pairs at once on the dailies.


................


I see H24 charts as being no different to any other timeframe - whether it be H1, M15, H4, etc. - in all these timeframes you have - red (down) or green (up) candles, trend, Support & resistance, and unfortunate periods of choppy market action.

Please can anyone think of any reasons why i am wrong to see trading off H24 charts as being no different to these other timeframes in these ways? meaning that it is not possible/not sensible to treat trading off H24 charts in the same way as if trading off eg. M15 OR H1?

Thanks a lot

 

[gc1]

I hope that anybody doing this either uses FX futures or a broker or SB company that doesn't gouge them with uncompetitive daily rollover rates.

Many companies charge 2% p.a. (or more) on the underlying currency position for rolling positions from one day to the next (by paying less than the market rate when long the higher interest currency and charging more than the market rate when short the higher interest currency). 2% doesn't sound like much but it equates to slightly more than one pip per day on GBP/USD. So hold a GBP/USD position for any length of time quickly becomes expensive in trading costs.

The same applies to all pairs but the high value ones (GBP/USD and GBP/JPY etc.) are the worst for this overcharging.

 

[JTrader]

I hope that anybody doing this either uses FX futures or a broker or SB company that doesn't gouge them with uncompetitive daily rollover rates.

Many companies charge 2% p.a. (or more) on the underlying currency position for rolling positions from one day to the next (by paying less than the market rate when long the higher interest currency and charging more than the market rate when short the higher interest currency). 2% doesn't sound like much but it equates to slightly more than one pip per day on GBP/USD. So hold a GBP/USD position for any length of time quickly becomes expensive in trading costs.

The same applies to all pairs but the high value ones (GBP/USD and GBP/JPY etc.) are the worst for this overcharging.

Yes but u also earn interest depending on the pair & whether long or short.
Of course, u always end up paying a bit more in interest than they pay you.
Oanda seem to have the best financing rates IMO - probably due to the fact there is no rollover - you pay financing charges by the second- whether you hold for 10 seconds or 10 weeks - a fairer system all round IMO.

 

[JTrader]

Rollover / Interest Policy

These are alparis rollover financing rates - which when i compared them to oanda months back were less favourable.
While the average difference between what they pay or take from you for being long or short may not sound a lot at maybe 0.4-0.5 pips per pair on average PER DAY, as gc1 states, it soon eats a significant hole in your bottom line pips P/L for the week/month - per EOD currency pair traded.
Maybe this inconvenient truth of overnight/intraday financing is a reason why EOD trading is not as popular as intraday :idea:. As the overnight/financing charges reduce the margin for error significantly IMO.

While the impact of financing charges on your bottom line P/L obviously depends on your profit expectancy/the strength of your system, to a large extent.
But I'm curious to see what other traders think about the impact of financing charges on your decision to or not to trade EOD? Are they a significant enough deterent to put you off EOD trading (fx)?
If you do trade EOD FX, do the finacing charges make a significant hole in you bottom line P/L (compared to if the financing charges didn't exist)?

Cheers.

 

[JTrader]

.....I'd actually mis-calculated/over-anticipated the impact that the financing charges would have on my own customised way of representing "anticipated" P/L by about 2.5 times. Therefore the hole that financing charges are likely to make in my customised P/L representations is around 2.5 times smaller than I'd at first calculated :whistling.

 

[harrymonk]

I am really new, but have been live trading almost daily since December. I have been concentrating on fx mainly since Feb. and realised quite early on about the rollovers.

The strategies I use for trading now, unless I am selling an equity or I'm on the correct side of the currency to get positive carry trade, tend to be 2 - 3 days max.
It is mainly because of the charges I am worried about keeping them open for longer. Even on £1 a point I have been charged sometimes 3times more than the stake for Libor or negative carry trade.
I see this as being another one of the SB company's edge over me so try not to expose myself to it too much.
I am still ironing out all the creases in my systems, and due to my newbie status probably have a lot more creases than most, but this is my limited experience. Hope its in keeping with the thread

I would like to test out some theories on EOD fx trading using P&F, does anyone know of a site that publishes the data? (high,low,open,close, etc.,) as it can be really tedious holding my cursor under each days bar and writing it down.:cheesy:

 

[JTrader]

JT, if you see something repetitive over time that you can trade, just trade it. The TF doesn't matter as long as you are comfortable with it.

You seem to be aching for some kind of general absolution, you probably will not get this.

Good luck, mate.

Yes mate you may be right - perhaps on some level i am looking for someone to say - go on you'll make a fortune! which obviously is not possible.
But if the forward results are as consistent & profitable as the BT'ed results then it should all work pretty well - trading the same strat on multiple pairs. I'm planning that my live results might be 50% as profitable as my bt'ed results (accounting for my possible poor implementation of the plan & less favourable market conditions than the bt'ed period) which would also be ok for half an hours work a day. The only way to find outt is to try it though....

 

[JTrader]

No, i'm not saying that someone will tell you how to make a fortune, that's in your hands.

But, you need to see it!

I think your multiple pair theory is wrong. Reason: You need to understand one pair first, any pair.

What are you back testing for, testing for something that you obviously don't understand in the first place?

What's the point?

You may feel that i am being blunt or harsh, i am not, i'm sincerely trying to help you.

You have been into this game far too long to be wondering, get some tutoring and don't waste anymore time.

10c/pt may feel harmless, but if you don't know what you are looking for, it's just a slow and painful death.

Good luck.

Whether or not u r being blunt or harsh, u don't know what i do or how i do it, so u r forming an opinion & commenting on something u know nothing about.
Thanks for the concern though.

 

[JTrader]

Thanks for throwing it back in my face. Now i know you are taking the p*ss. You are the one asking all the questions. Like i said, good bloody luck.

now I am even more , and also a little for you.

But thanks for showing an interest anyway mate.

Anyway, back to the title topic......

 

[andyibet]

Hi

To kick off this thread, I'm interested to see a quick show of hands - in terms of gaging the number of traders/people who trade forex on an End Of Day (EOD) basis.

You may trade EOD forex alongside your intraday trading etc. etc.

If you don't trade EOD forex, is this because you havent considered it, or because you considered EOD forex, but decided that it is difficult to squeeze decent returns from EOD forex:?:

Trading only one currency pair at a time, I'd agree that it is difficult to squeeze decent returns from EOD FX. However, with EOD FX, becuase it only requires maybe 20 minutes attention 5 times per week, and a trader has the ability to trade as many ccy pairs at once as they can handle.

I reckon i can manage 15-16 pairs at the same time, based on the assumption that my approach produces a trade every 15-20 candles/days.

If you do trade EOD FX, how many pairs do you trade/manage at the same time:?:


Any other comments & opinions regarding EOD FX trading - its merits & drawbacks etc. - are welcome.

Cheers.

hi there,

my first post.

i am interested in tradung EOD as intraday is killing me at times. i am pulling £200 a day ($300-$350) but the suspense and stress feels like this isnt a great long term solution. i would be happy to sit back with EOD and reduce my returns a little. i have a Vince Stanzione course on trading and he doesnt advocate intraday but just uses a simple MA method. howver it do think a bigger pot is needed. i have a seed fund of £5k and have been taking my £1k a week out from that fund. how much seed pot do you think is needed for EOD considering the larger stops? do you use a 5% risk management on trades as i do day trading? what methods are you using?

first post and all these questions. well see you soon