Finding the Best Trading Times and Days from Win–Loss and Reward–Risk Ratios

Summary

The document describes a script for day traders that examines a strategy’s historical results by time of day and day of week. It proposes using win–loss and reward–risk ratios to identify the periods when the strategy has performed best, comparing the process to choosing business hours based on customer demand. The script has settings for a target win–loss ratio and reward–risk ratio, with example defaults provided in the source.

The page offers no performance study or evidence that selecting historically strong time slots improves future results. It points users to instructions for running the script and analyzing historical data, and mentions separate tools for day and time analysis. Historical patterns may not persist, and the document does not explain sample-size requirements, transaction costs, or how to guard against overfitting when selecting favorable periods.

Key ideas

• The script groups a day-trading strategy’s historical performance by time and weekday.
• It uses win–loss and reward–risk ratios to help identify favorable trading periods.
• Its settings include thresholds for those two ratios.
• The document does not provide evidence that past time-of-day or weekday performance will continue.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.