FIGURE 1: NARROW RANGE BREAKDOWN/BREAKOUT. These give large moves in a particular direction.
TRADING TECHNIQUES
Last Call/First Call
This trading strategy can be used to enter the market in the last hour of the trading day and exit in the first hour of the next.
They say 95% of daytraders lose money, but that’s not the case anymore if you are operating in the right time zone of the day and in the right stocks. In fact, it is possible to daytrade the markets with 80% accuracy. The overall volatility of markets seems to be increasing every year, so the more time spent in markets leads to greater risks being taken. It has now become possible to slice the trading day into the most active and profitable time periods and least profitable and active time periods.
The AG last-hour technique is a “Buy today, sell tomorrow” or “Sell today, buy tomorrow” daytrading strategy. This can be used for entry in the last hour of the trading day and exiting in the first hour of the next trading day.
I have conducted real-time backtesting of the strategy in the last year. The strategy has a documented backtesting accuracy within given parameters of about 80% odds of getting 2% or better on a daily basis. The beauty of this strategy is that you always have a play for the day, and you do not have to watch a quote screen all day.
What’s so special about it?
The first and last hours of any trading day are the most active in terms of price and volume. The activity in the last hour happens because most large institutions operate in the post-lunch session. There are also up and down swings during the day, with the market revealing its hand only in the final hour.
FIGURE 1: NARROW RANGE BREAKDOWN/BREAKOUT. These give large moves in a particular direction.