In summary, the general overnight futures holdings must identify the current trend in the futures market, and then see if your holding direction is consistent with the current trend direction, futures holdings are based on the principle of simply sticking to light positions.
The current market as a whole is a multi-head market or a blank market must be clear, can not hold a contrary position, so it is only possible to stay overnight in a multi-headed market, empty-headed markets leave blank orders, this is a prerequisite.
There must be a certain profit margin to better protect against risk, if the cost price and the closing price are similar, there is little profit margin, such as the market is not very clear, it is generally not recommended to stay overnight. For example, a wave of multi-headed bullish markets, you have now a profit of two hundred points, the next day even if a small low opening will have no effect on you, if there are hundreds of thousands of profit margin, even a drop will not be enough to cause a loss of capital.
There is a small margin of profit, but the margin of profit is not very large, at this time the big trend is clear, at this time it should be analyzed whether the short-cycle trend is consistent with the long-cycle trend, for example, if the dayline is multi-headed, the 1-hour cycle is multi-headed, and the 15-minute cycle is also multi-headed, it is worth holding overnight.
If the trend is to the left, it is necessary to be cautious overnight, as many varieties in the country are still waiting to see the outlook.
An important technical reference for overnight holdings is that if it is a multi-order, the overall is a multi-head move, and the current price must be above the 5-day midline. Conversely, overnight holdings of overnight holdings of overnight holdings of overnight holdings of the overall short position, and the current price must be below the 5-day midline.
Strictly control positions, if there is not too much profit space, overnight positions should not be too heavy, the next day if the market trend reverses, the cut is cut.
Summary: In futures trading, the problem that is often encountered is whether or not to leave orders overnight? Some people feel that overnight holding is often afraid of the market to fall the next day, in fact, it is not necessary to worry, the big trend will continue as long as there is no reversal. However, the experience of some methods of leaving orders overnight is worth noting.
The overnight position is a common problem in futures trading, most investors are not easily squeezed out of the day after buying a variety, they always have a fantasy that tomorrow may rebound or fall, but if the overnight position falls or rises in the opposite direction to the variety in their hands, a high opening or low opening the next day can easily cause huge losses. Currently, all the varieties in the three exchanges are connected to the overnight position, and the movement of the bull may be affected slightly, because the time of the Tokyo bull is almost the same as the Shanghai trading period, the discs can feel its fall, but the LME copper and CBOT are more difficult to grasp.
After more than two years of research, he believes that the operation of futures with a short line can avoid risks, while sticking to the short line should try to avoid staying overnight. Especially the varieties that are not kept on the same day, because the varieties that are often reversed, are often left unbalanced until the next day, but will lose a lot. The results of these years of research can be hoped to seize only one opportunity every day, as long as the profit can be maintained at 3-5% of the total capital, it will be very satisfying.
This is a very common situation, I have encountered at least a dozen similar situations. For example, on March 5, 2004, the day of the fall of the copper line and pulled out of the main 409 contract was closed at 27880 yuan, but the next day the variety was opened 28600 yuan, jumped to 800 yuan. This is not the most typical, even the bean 409 deal also fell on February 9 when the day of closing at 3341 yuan, the next day did not expect to be affected by the BOCBOT jump to 3422 points, if it reached 81 degrees.
Of course, there are many times when you need to leave some overnight storage, so when should you leave it?
In general, when a certain variety of day breakout position pulls out the big sun, the volume of transactions and holding simultaneously enlarged, it is generally possible to stay overnight. Of course, at the same time to study the trend of the outlet, if the outlet is not compatible, it is not advisable to stay overnight. When observing the outlet, you can refer to the trend of the electronic disc, many times the electronic disc is synchronized with the real disc trading at night.
In addition, how to solve the situation of low or high on the next day due to the overnight position encountered. The former is to keep the overnight position in the bullish state, the latter is to hold the empty order in the fall. In the above article, the author emphasizes that the general situation is not advisable to keep the overnight position, it can only be kept in the strong or strong trend. If the following day low or high situation occurs (this situation is largely influenced by the overnight position), then there is inevitably a chance of a wave of technical reversal after its opening, because it is in a strong or weak state, the overnight position can only temporarily change the movement in its disc, in the overnight position will inevitably show more force in the disc again, the momentum will be displayed on the chart as a flagpole rebound, if there is a single position, it can be rebounded, and the buyer will not rush to open the disc or throw out the stock.
Translated from the blog of Mr. Deyjah