End Of Day versus Intraday Trading Strategies
We just don't understand why individual traders want to look at a screen for hours
and hours each day trading umpteen several instruments on a 15 minute chart or even less. In and out of GBPUSD, Long the DAX, 20 minutes later Silver on the Short side - What's the point?
There are numerous downsides to Intraday trading systems and once compared to End Of Day (EOD) trading systems with any luck it will be much clearer why we prefer the latter.
SCREEN TIME
The most obvious and key reason.
There are literally hundreds perhaps thousands of instruments to trade these days. Technology and Broker competition puts us individuals in, almost, the same boat as the 'big fish'. However, we do not suggest that anyone would want to trade all of these instruments, we are simply making the point that there are many to choose from.
Based on this fact alone, the most logical approach and the one we prefer is End Of Day (EOD) trading, we call this 'Set Time' as EOD is different all around the globe. With this method we select our instruments of choice, then, at a Set Time every day we apply our trading logic and react as necessary. If there are no trades we walk away and enjoy the rest of the day, if there is a valid setup, we place our order/execute our trade and again, walk away. By focusing on the range of instruments available to us instead of the lower time-frame charts we increase our options for trading opportunities without having to spend any more time at our monitor.
It makes sense, why go round the bend 'screen watching' all day, we have been there, done that, got the T-Shirt. We are nowadays certainly older and we believe a little wiser.
All Trading systems and Signal services we trade require less than 15 minutes a day screen time and it is improbable that we will ever trade anything that takes up more time than this. This is not because we are lazy, it's for the reason that we don't have to, trading is about making a profit and having a life.
OTHER REASONS
The Spread - Think about what you forfeit every time you are in and out of a trade! Trade 5 times daily with a 2 pip spread - that's 10 pips a day. If you are trading with a 10 pip stop, each time you enter a trade you are wasting 20% of that trade on spread. Compare this with Set Time (EOD) trading, one trade a day, a 2 pip spread with a 50 pip stop, 4% in spread. More trading to us does not mean more chance of being profitable, it means paying more in spreads/commissions.
Volatility/Whip-saws - Trading Intra-day we employ closer stops and get whipsawed out of trades, trading Set Time (EOD) systems our stops are bigger and accordingly we are not whipsawed in and out of trades. Trading Intra-Day means you have to live with volatility, trading at a Set Time means it is less likely to impact your positions. In addition, screen time is reduced, the cost of doing business is less and generally, one's lifestyle, is much better.
Summary
Do not believe for one moment we are lazy traders. We put a lot of effort into our trading in terms of system selection and, after this, execution of that system. Our view is, having chosen a specific trading approach, effort, in terms of executing that strategy and screen-time, should be minimal.
As far as we are concerned there are more than enough opportunities in this environment across the many different instruments and higher time-frames (1 hour +). We do not need to be tied to our monitor all day to make a profit. And, anyway, it costs less (in dealing costs), it gives is more free time and we are less exposed to market noise (volatility).
Each review we perform we classify the strategy into Set Time (EOD) and Intra-day, or the half-way house, Set Times (more than once a day but at specific times). Hopefully now you understand why we have a preference for Set Time/Times systems.
End Of Day versus Intraday Trading Strategies
By: Tatiana
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