Hi guys,

I am a futures trader in Hong Kong using purely price action and support & resistance levels. Since I don't trade night market sessions, my trading hours are from 9:15am - 4:30pm (Hong Kong time). I use a 5-minute chart for entry with 1.6R. Roughly there are 2 to 3 entries a day. by statistics (93 trades in 2.5 months), 40% of the trades I took in the afternoon does not hit my stop losses or profit targets by 4:30pm. As I need to close the position by the market close, I realize my average risk-reward ratio is only 1.26 for all the winning trades I took due to the early stop losses or profit taking by 4:30pm.

Does it affect the long-run performance? I wonder whether I should stop trading, say, after 2pm so that I don't need to forcibly close the position by 4:30pm. Or, should I just let it run in the night market sessions (The night market starts at 5:15pm until 3am Hong Kong time). However, the liquidy is much less at night.

Although I am in profit over 93 trades, I am pretty sure this sample size is not big enough to say I can stay in profit in the long run.

Appreciated!

I don't see enough information provided to attempt to help provide feedback. For example, what futures markets do you trade? HK futures, Frankfurt or CME etc. Currency, Stock index or Ag futures? Intraday scalping or long term? All these make a difference.

You can probably answer your own question if you make a study of the price movement between the time periods you are questioning. Does price usually continue with the trend where you stop ... And depending on the size of your trades, does liquidity and bid/ask spread really make much difference for your entries / exits in such time slot?

Maybe you find the above at least a little bit helpful. Good trading to you.
Bill

lche3206 

Hi guys, I am a futures trader in Hong Kong using purely price action and support & resistance levels. Since I don't trade night market sessions, my trading hours are from 9:15am - 4:30pm (Hong Kong time). I use a 5-minute chart for entry with 1.6R. Roughly there are 2 to 3 entries a day. by statistics (93 trades in 2.5 months), 40% of the trades I took in the afternoon does not hit my stop losses or profit targets by 4:30pm. As I need to close the position by the market close, I realize my average risk-reward ratio is only 1.26 for all the winning trades I took due to the early stop losses or profit taking by 4:30pm. Does it affect the long-run performance? I wonder whether I should stop trading, say, after 2pm so that I don't need to forcibly close the position by 4:30pm. Or, should I just let it run in the night market sessions (The night market starts at 5:15pm until 3am Hong Kong time). However, the liquidy is much less at night. Although I am in profit over 93 trades, I am pretty sure this sample size is not big enough to say I can stay in profit in the long run. Appreciated!

Billiwon 

I don't see enough information provided to attempt to help provide feedback. For example, what futures markets do you trade? HK futures, Frankfurt or CME etc. Currency, Stock index or Ag futures? Intraday scalping or long term? All these make a difference.

There will also be a large difference in the required margin if you are trading on, for instance, the CME exchange and holding overnight. This, if it applies, may totally change the picture. The other factors mentioned by @Billiwon may also figure into it.

So I agree, more details please.

Bob.