Daily Trading Strategy — Insights, Rules, and Backtest Analysis

Some active traders like to trade daily, opening and closing their trades within the trading day. This manner of trading requires having a daily trading strategy.

The daily trading strategy is a method of trading where a trader buys and sells a financial instrument within the same trading day — all positions are closed before the market closes for the trading day.

The daily trading strategy aims to exploit the inevitable up-and-down price movements that occur during a trading day while avoiding unmanageable risks and negative price gaps that may occur between one day’s close and the next day’s price at the open.

In this post, we take a look at this trading approach and the rules.