Year-end and Christmas are coming. Most of the people will start their holiday and family gathering. Most traders will start to have their holiday too. However, Expert Advisors (EA) and the automated trading bot do not require holiday and they can still trade 24 x 5 while you are on holiday. Should you allow your EA to continue to trade during the holiday season? This article is to share what you need to know about forex trading in the holiday season.
Trading Condition in Holiday Season
The Year-End Holiday season is the period from Christmas eve till the first week of January. Most Americans and Europeans will take long year-end holidays from this period for traveling and recharge themselves and only come back to the market after the first week of January.
In this period, trading volume will be very low and it could be easily manipulated by some traders. Hence, the forex market could be quiet for a period and suddenly volatile.
One of the key examples in history is the USDJPY and AUDUSD flash crash that was happened on 2 January 2019, where both pairs dropped more than 4% in just a few minutes. You can refer here for more information about the 2019 flash crash.
Our Recommendation
We considered this year-end holiday season to be a period of low profit ( as less volume and mostly quiet) and high risk ( as someone might manipulate the market). Hence, our recommendation is to stop trading for Ophiuchus EA and Limitless EA from 24 Dec 2021 till 9 Jan 2022.
For Jakiro EA, you can allow it to run during this year-end holiday season. However, if you really want to have a good holiday without the need to monitor your trading, you can decide to stop trading for Jakiro EA too.
Disclaimer – Please note that Limitless Trading is not liable for our recommendation and is not responsible for any loss or profit caused by this recommendation. You should assess your personal circumstances and perform your own research to make decisions for your trading.
Lastly, Merry Christmas and Happy New Year to all our clients and traders. It is time to review your trading performance and prepare for trading for 2022. Thanks for your support and hopefully we can bring a better trading system for you in the coming future.
Great content! Keep up the good work!