Time Filter
Last updated
Last updated
Copyright © Lune Trading. Disclaimer: Past performance is not indicative of future results. Our content is for educational and informational purposes only, reflecting our perspectives and not professional financial advice. Trading and investing is risky.
Time Filters are instrumental in sculpting a trading strategy that's responsive to both the rhythm of the week and the pulse of various global markets. By incorporating these temporal filters, traders can optimize their strategies to capture favorable conditions in particular time windows and avoid periods of typical underperformance or heightened risk.
Mon
When enabled, trades will only be taken on Monday.
Tue
When enabled, trades will only be taken on Tuesday.
Wed
When enabled, trades will only be taken on wednesday.
Thu
When enabled, trades will only be taken on Thursday.
Fri
When enabled, trades will only be taken on Friday.
Sat
When enabled, trades will only be taken on Saturday.
Sun
When enabled, trades will only be taken on Sunday.
New York
When enabled, trades will only be taken during New York Sessions.
London
When enabled, trades will only be taken during London Sessions.
Tokyo
When enabled, trades will only be taken during Tokyo Sessions.
Syndey
When enabled, trades will only be taken during Syndey Sessions.
Identify Historical Patterns: Before implementing any Time Filter, review your historical trades or your strategy's performance. Determine if there are specific days or market sessions where your strategy performs poorly or exceptionally well.
Configure Weekday Filters:
If you've identified that your strategy doesn't perform well on particular days (e.g., Mondays or Fridays, which might be affected by weekend influences), deselect those days from the available options.
Conversely, if certain weekdays consistently yield better results, you can choose to focus exclusively on those days.
Adjust Market Session Filters:
New York and London: These sessions typically see high liquidity and can be ideal for many trading strategies, especially given the overlap between the two sessions, which can result in heightened volatility and trading opportunities.
Tokyo: The Asian market session is defined by the Tokyo hours and can provide unique trading opportunities, especially for JPY currency pairs and Asian indices.
Sydney: As the first major market to open after the weekend, the Sydney session can provide early indications of market sentiment for the coming week.
Enable or disable specific sessions based on your strategy's historical performance during these periods.
Combine Filters for Comprehensive Coverage:
For instance, if you've found that your strategy works best during the New York session but only on Tuesdays and Thursdays, set up your filters accordingly.
Remember, combining too many specific filters might reduce the number of trades you take. It's a balance between quantity and quality.
Regularly Review and Adjust:
Market conditions and patterns change. It's essential to revisit your Time Filters periodically to ensure they remain optimized for the current trading environment.
In conclusion, Time Filters offer a strategic way to tailor trading activity to periods of optimal profitability and minimal risk. By understanding and harnessing the inherent rhythms of the trading week and the unique characteristics of global market sessions, traders can position themselves for greater success.
