Asian Market Overnight Gaps - How do you size for these?

Question

Still getting a handle on Asia sessions, especially with how often we see significant overnight gaps on open. For those of you regularly trading markets like the Nikkei or Hang Seng, how do you adjust your position sizing to account for the potential for these larger gaps compared to, say, the more continuous European or US sessions? Do you just scale down more aggressively, or is there another approach to managing the wider risk range?

amensah · Accepted Answer

That's a great question. I tend to scale down my position size a fair bit for Asian market opens, especially if there's any significant news expected. Have you tried using wider stop losses to give yourself more room, or does that mess with your risk-reward too much?

Asian Market Overnight Gaps - How do you size for these?

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