Thursday, January 14, 2010

Use market activity instead of trading hours to decide when to run the automated FX scripts

Some automated trading programs only trade during certain time periods. That's because at certain time period, the market usually has a relatively stable pattern, either volatile or nonvolatile.

Comparing with trading hour, market activity is a more essential factor for measuring a stable pattern.

market activity can be measured as(I can think of right now):
1. tick counts per minute
2. price net absolute change per minute
3. price gross absolute change per minute

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