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Which time frames do you use for day trading and how many signals do you get on average?

(Last Updated On: November 14, 2011)

Which time frames do you use for day trading and how many signals do you get on average?
Hi fellow traders.I used to be a market maker but recently getting into future trading, busy with writing an algorithm. I wonder which time frames do you use for day trading? And how many signals do you get daily on average?Currently, I am using 1 min and 3 min. I get around 20 signals a day. Good luck to all!!


what time frame is best – depends on various factors. Personally for manually trading, I use as base system (signals) 20-30 min time frame while entering/closing decision is made on 3-5 min time frame. Regarding forex trading, to avoid false signals, first, I take into account the fundamental news/events (from forex calendar) – analysts’ suggestions and then, I take into account only the signals created to one direction and ignore the other.

But generally, it depends on the type of instrument you are trading (stock, future, forex, etc). And always you should take into account the transaction costs. I think the optimal time frame decision could be found using one of the following ways:

a. Perform optimization across multiple time frames (1, 2, 5, 10, 15, 20, 30 … min) on specific instrument independently of the market conditions.

b. Perform optimization across multiple time frames (1, 2, 5, 10, 15, 20, 30 … min) on specific instrument taking into account the market conditions (volatility, trends, etc). To construct this – there are many algorithms that could be incorporated. For example, using mining association algorithms & GAs to cluster the optimization based on specific attributes.

c. In your trading algorithms you can employ simultaneously multiple time frames such as: Final algorithm = (weighted factor 1) x (Trading System of frame 1) + (weighted factor 2) x (Trading System of frame 2) + ….

It has been published “The Laws of Multiple Time Frames” by the well- known Krausz who determined six rules (1. Every time frame has its own structure. 2. The higher time frame overrule the lower time frame, etc).

Currently, time frame optimization is involved in my research. I have not yet completed it to test and get results (maybe at the end of this year).

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