Futures markets exhibit different levels of liquidity and volatility throughout the day. Recognizing these volume patterns can help traders adjust risk exposure accordingly.

Typical Trading Volume by Session

➡️ Key Takeaway: Risk varies by session—understanding this can help set trading parameters wisely.

Step 5: Adjusting Risk Based on Market Sessions

1️⃣ Lower Risk Settings for Low-Volume Sessions (Asia: 6 PM – 3 AM)

• Avoid large positions (Smaller contract size like 3-5)
• Increase entry filters (e.g., SwingArm Zones 3-4 or Higher Pressure Levels)
• Consider wider stops (To avoid stop-outs from erratic moves)
• Use fewer trades per cycle (Adjust Pyramiding Settings)

2️⃣ Moderate Risk for the London Session (3 AM – 8 AM)

• Gradual position increases (5-10 contracts depending on conviction)
• Enable pressure-based entries (Allowing for trend-building momentum)
• Use a moderate trade filter (Reducing false signals)

3️⃣ Higher Risk & Reward for US Session (8 AM – 4 PM)

• Use full contract size if the trend is strong
• Adjust to faster trade execution
• Watch key volatility spikes (e.g., 8:30 AM reports, FOMC, and open/close price action)

Step 6: Automating Session-Based Adjustments

Implementation in the Strategy:

✅ Use Time Blocks to Restrict Trading in Low Liquidity Periods
✅ Adjust Contract Size Dynamically Based on Session
✅ Enable or Disable Entry Types for Each Session
✅ Tighten or Loosen Trade Filters According to Volume Conditions

By incorporating these session-based settings, traders can optimize their execution, reduce unnecessary risk, and align their strategy with market dynamics.