Been holding positions through weekends for a while now but Sunday gaps still mess with my head.
Usually just set wider stops but wondering if there are better ways to handle this. Market opens can be brutal sometimes.
Weekend gaps happen when you hold positions through Friday close - that’s just how it works.
I track gap behavior in a journal for my main pairs. After months of data, you’ll spot patterns in how currencies react to weekend news.
Most gaps fill in the first few Monday hours unless there’s actual fundamental news driving the move.
Close everything Friday if there’s big stuff happening over the weekend.
Put your stops at technical levels, not random wider distances. Weekend gaps usually respect strong support/resistance zones. Random stop placement is just gambling on gap size. Use currency correlation - go long EUR/USD and short GBP/USD together. Gaps typically hit both the same way, so one cushions the other. Watch Asia Pacific markets Sunday night. Their moves often show you how forex will open.
Sunday gaps destroyed my trades until I changed my strategy.
Now I hedge weekend positions with small opposite trades before Friday close. Costs me some spread but works like insurance. Gap goes against me? The hedge covers part of the hit.
I don’t hold through weekends when there’s political tension brewing. Social media and news give you plenty of warning.
Here’s another trick: watch how Sunday opens across sessions. Sydney first, then Tokyo. Gap happens but no follow-through in the first hour? Usually fills partially by London open.
Stick to majors for weekend holds. AUD/JPY gapped 80 pips against me during some political mess. Never touching exotics over weekends again.
Cut your position size 30-50% before Friday close. You’ll stay in the trade but won’t get crushed by weekend gaps. EUR/USD gaps way less than exotic pairs. Big news over weekends = big moves, so check the economic calendar first. I close half my position Friday, then jump back in Monday if the gap screws me. Beats praying your wide stops will help when the market opens 100 pips against you.
I skip trading on news-heavy weekends entirely. I’d rather miss some gains than get gapped out.