EOD trading 24 hour market

[Bill Carson]

I'm interested in "end of day" trading the Fx which runs 24 hours a day.

What I'm trying to work out is where should I mark the end of my day and how to set up the time zones on trading software. Is it best to mark it at:

a. midnight in my time zone (gmt +11 hours)
b. when the market closes in my country
c. when some major market closes
d. at a fixed time where the market generally quietens down
e. never - you shouldn't EOD trade the FX

I expect it is c or d but this may be one of those things every one knows except me, couldn't find any info in the search.

 

[Rhody Trader]

The traditional EOD for forex is the conclusion of the NYC session, which will generally be considered either 4:00PM or 5:00PM US Eastern time, dependinng on the broker or data source. You can, of course, set your own EOD. That might make sense in terms of trade executions for some, though in your specific case the NYC close is basically your open. The issue with not using the NYC close as EOD is that you have an uneven week.

 

[meanreversion]

It depends on the currency pair. For example, NZD/USD becomes "new value" (i.e. it's value date moves forward by one day) at 1PM EST. Most of the majors move to new value at 5PM EST. If you use midnight UK time, you should be ok, it won't make a big difference in the long run. HOWEVER if you plan to deal at "end of day", you might want to pick a time that's more convenient.

 

[Bill Carson]

Thanks guys for 2 very helpful answers. I haven't decided which way to go yet but now I know what to look at.