How to Pick the Best Trading Hours Based on Your Style
Selecting the right trading hours is crucial for success, especially when working within the structure of a prop firm evaluation. Your trading style, instrument choice, and personal schedule should all influence when you trade.
Understanding Market Sessions
Markets open and close at different times globally, creating sessions like:
- Asian Session: Generally quieter with lower volatility.
- European Session: More volume and volatility, overlapping with Asian and US sessions.
- US Session: The most active and volatile, often offering the best trading opportunities.
Matching Trading Style to Hours
Scalping
Requires high liquidity and volatility. The US and European sessions are typically best.
Day Trading
Can be effective during European and US sessions. Trading during overlap times often yields better setups.
Swing Trading
Less dependent on session times but requires attention to overnight risks.
Prop Firm Restrictions and Hours
Some prop firms limit trading hours or restrict trading during major news events. Knowing these limits helps prevent rule breaches.
Personal Schedule and Focus
Trading when you can maintain focus and minimize distractions improves decision quality.
Tips to Optimize Your Trading Hours
- Use market calendars to track session overlaps and news releases.
- Align trading hours with your peak alertness.
- Avoid trading during low-volume times to reduce slippage and false signals.
Selecting the right trading hours tailored to your style and prop firm rules increases your chances of passing challenges and trading profitably.