Session handoffs and trading across time zones

[Shadow Trader]

Markets pass the baton from Sydney to Tokyo to London to New York. Each handoff brings changes in liquidity, volatility and participants.

Scalpers who trade multiple sessions face shifting conditions. A strategy tuned to the London open may fail at the Tokyo open. Spreads, ranges and correlations differ, and price behaves differently around major levels.

The transitions themselves are interesting. Tokyo to London often brings a burst of volatility as European traders react to overnight moves. London to New York adds US data and equity market influence. New York to Sydney, after the roll, is thin and erratic.

Tracking results by session reveals which ones suit the strategy. Many scalpers discover that one or two sessions generate most of their profit, and the others dilute it.

Restricting trading to the best handoff windows, such as the first ninety minutes of London, reduces fatigue and focuses attention.

Which session transitions show up as the most profitable in the journal?