Top Dog Trading

Top Dog Trading


What's the Best Time Interval for Day Trading

July 28, 2018

WHAT'S THE BEST TIME INTERVAL FOR DAY TRADING?
THE 5 RULES:

* The size of your trading account. Can’t risk more than 2% of your trading account on any one given trade.

* This is from entry to protective stop.
* If holding overnight, then is risk of your hedge.
* Keep going smaller in time interval, and find what the risk is on 80% of those trades and if it’s more than 2%, then you have to go to a shorter time interval.

* Avoid the noise. Make sure your patterns and trade setups are happening consistently and that it’s not too short of a time interval.
* How much time do you need to see your setup, analyze the setup, and execute the trade with confidence.

* This may change over time as you get more comfortable with your trading method.

* Your psychological need for trade frequency.

* Shorter time intervals give you more trades. Getting bored and distracted is a big problem in trading.

* The average daily volume of the market you’re trading. The more volume it trades …

* The more volume it trades …

* The faster time interval you can use.
* But with tick charts, if your tick interval is too fast, then the triggers go by before you can enter them.

* The less volume it trades …

* There’s more noise on a smaller time interval.
* On tick charts, you will get more trades if you use faster tick intervals. 

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