What is the Best Day to Day Trade the Markets?


Monday's or Fridays?


Unless you have a strategy that specifically takes advantage of a day of week pattern based on specialized research or information, we have found that it is best to run price-based day trading systems without a day of week bias.


In the short-term analysis over the last few months, Monday's have been the least profitable day while Friday's have been the most profitable day. I have seen these types of patterns flip as soon as you bias it, so that if you were to only trade on Friday's going forward, Friday's could be the one day of week that has the net loss. While we are always looking for a way to be more efficient by trading at the most opportune times, the combined results of trading Monday - Friday, provides the best risk adjusted returns and is supportive of running our price-based day trading strategies every day.


There are times when we cycle out of our strategies and then cycle back in for different reasons. Currently we do not bias our strategy for day of week patterns while we are in a trading cycle. This doesn't mean that we wouldn't find new research in the future to potentially support this bias but for now, I am not in favor of this bias and would consider it curve fitting.


If you are discretionary trader, you should probably take some days off.

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