Expiry Times Question
Dale Stewart

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#2566

Moneybaron

October 5, 2015 at 1:02 pm

Wow:-) Thank you so much for the detailed reply, I really appreciate it man! I will give your advice a try and let you know if it’s working for me.

Dale Stewart

LEVEL 1 : NEWBIE

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#2559

Moneybaron

October 5, 2015 at 4:26 pm

Hey guys I have a question regarding expiry times.

I have been struggling to select the right expiry time for my trades.

What will happen is:

1 – My trade will be ITM the whole time but as my trade expires it would just finish out the money.
2 – My trade will be OTM and then as my trade expires my trade turns into a winning trade.

So my question is how do you know what expiry time to choose?

Julio Rodgers

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#2561

Julios

October 5, 2015 at 5:34 pm

Man Moneybaron, it’s really a hard question to answer. We all struggle with this problem some time or another. The expiry time will depend on the following factors:

-What pair you are trading
-Your timeframe that you are using
-The strategy that you are trading with
-The market session that you trade in

This is the basic stuff that I would say, will play a role to make your decision on what expiry to choose.

Dale Stewart

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#2562

Moneybaron

October 5, 2015 at 9:23 pm

Thanks for the tips Julios. Could you be so kind to give me a few pointers if I answer the above points?

Julio Rodgers

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#2563

Julios

October 5, 2015 at 11:49 pm

Yeah sure I will try my best.

Dale Stewart

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#2564

Moneybaron

October 6, 2015 at 8:10 am

Ok awesome, here we go…

I mainly trade the EUR/USD during the US session. I trade using support and resistance levels. I use a 30 minute chart to draw in my levels then I go down to 5 minute timeframe to take my trades from.

Julio Rodgers

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#2565

Julios

October 6, 2015 at 11:53 am

Support and resistance levels are likely to break during the US session because there is a lot of liquidity during this session. Knowing this, my opinion would be to use 5-10 minute expiry on bounces, because the chances are good that the level will break.

When you trade a support level that broke and became a resistance level (or vice versa), you can use longer expiry times like 15-30 minute expiry. I say this because you are trading with the trend. This is because you are trading with the trend.

Counter trend moves really are not a good idea to use during the US session. If you want my advice – stick to the trend. Your ITM margin will also be much greater than counter trend moves.

Trevor Daniel

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#2567

TrevorBO

October 6, 2015 at 3:29 pm

Good points you make Julios.

If I may, I have a suggestion to make. Take a place where you would have taken a trade and see which expiry time would have worked. Write it down. Do this with at least 100 trades. At the end, analyze the information to see which timeframe had the most winners. This will obviously be the best timeframe to choose when you are making your future trades.

Dale Stewart

LEVEL 1 : NEWBIE

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#2681

Moneybaron

October 9, 2015 at 11:23 am

That’s actually a great idea you have there, TrevorBO! I don’t know why but I never thought of this… I think I might just do it over the weekend and see what’s up. Thanks for the input buddy

Alex

LEVEL 10 : SENIOR

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#2685

Alex

October 9, 2015 at 2:37 pm

I totally agree with what you guys recommended. Remember that you could also use our Trading Simulator to determine which expiry time works the best for your strategy. Just use the Simulator in your strategy tester on MT4 so that you can back test your expiry times.

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