OmniTrader Professional Forum
OmniTrader Pro General Discussion
"Dynamic Trading Amid Challenges"
0 replies, 231 viewings
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OmniTrader Professional Forum
OmniTrader Pro General Discussion
"Dynamic Trading Amid Challenges"
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Last Activity 2/23/2025 4:01 AM 0 replies, 231 viewings |
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Frank Birch Veteran   Posts: 171 Joined: 3/25/2006 Location: UK  User Profile |
It's been quite a hectic week, with 23 private messages flooding in from traders who seem to have faced losses from the last quarter of 2022 up to the current date. In my conversations, I found that 80% of them are trading on an end-of-day time frame. This led me to ponder the implications of such a strategy, especially during times of market congestion. When you trade end of day, it takes a considerable three months to evaluate the results, and the big question becomes: How long will this drawdown persist? The markets are currently in a period of congestion, and predicting when they will return to their natural ebb and flow is uncertain—whether that be an upward or downward trend. Most of these traders are focusing on stocks, and while that's perfectly valid, the limitation is evident: within a single day session, you only have about 6.5 hours for trading. Lowering your time frame can be challenging. Here's where alternative avenues like the futures market (open 24/5) and the forex market (open 24/5) come into play. Liquidity is a crucial factor, and trading in these markets provides continuous opportunities. If your 60-minute time frame is experiencing a drawdown, it doesn't necessarily mean the 15-minute time frame is. You might not make as much profit, but it mitigates the overall portfolio pain. In our approach, we incorporate 60-minute, 30-minute, and 15-minute time frames. If one isn't performing well, it doesn't imply the others are failing. You may not identify a trend on the 60-minute chart, but the 15-minute could be displaying a clear trend. Remember, a trend is a trend, regardless of its duration. In essence, considering multiple time frames in your trading strategy can be pivotal for a well-rounded and resilient portfolio. It's food for thought as you navigate the challenges of the market. Best regards, Frank Birch |
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