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Intraday and Multiday Operations
e have seen before that the principal trades are: scalper, day
trading (or intraday), multiday, and position.
We are mainly interested in intraday and multiday trading:
this is because, usually, we retailers do not have tools advanced enough that
we can operate in the scalping world with a certain speed of execution, and
we cannot open a trade and wait for months before closing it. If you want to
try these two transactions on your own, of course, I have nothing to object
to.
So, we're going to analyze the intraday and multiday trades. We choose
above all these two because, given my quantitative analyses, there are a
higher number of cases to be investigated and therefore data closer to
expectations.
Let's use an example: if I analyze the past ten years of the Euro Dollar
(EurUsd), studying an intraday strategy, I can have thousands of executed
trades to explain the trends; unlike a "position" strategy in which there
would be much fewer trades, consequently, this means less statistical
predictability.
Intraday

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As we have said, intraday or day trading includes all those transactions that
are opened, managed, and closed in a day.
This means that if I open a Long operation (i.e., assuming a rise in prices) at
10:00 in the morning, then I will manage it and usually close it within 24
hours.
My automatic systems are mainly intraday or at the closest after 24/48h:
this is because I like seeing activities open, managed, and closed within the
day.
I prefer this type of operation also because I can use quantitative analyses;
there is a need to study past years’ strategies with a good number of trades.
Let's take, for example, the time frame of the last ten years: in the case of
position strategies, we could hypothetically have 20 to 50 trades to analyze.
How do I know, then, whether this is a real statistical advantage or whether
it is mere luck?
It is a different ballgame to have 1,000/2,000/3,000 trades to analyze: with a
larger pool of data you can better evaluate the strategy and type of
operation. You will never be sure that past studies will be reflected
identically in the future, but yes, you can rely on a more accurate analysis.
But it is not enough to have a large number of trades to analyze: an ad hoc
procedure is also needed to avoid significant assessment errors. All of
which I will explain in more detail in the training courses I have created and
which I will tell you about later.
Another advantage of closing trades within the day is to avoid sudden
increases in spreads in the transition from the current stock exchange day to
the next day, when there is a transfer of liquidity that involves an increase in
ranges and that risks going to hit a Stop Loss set, thus creating the potential

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of finding unpleasant losses on your account. We will see in more detail
what is meant by Stop Loss and Take Profit.
A small disadvantage of the intraday operation is having daily "costs of
management." For daily costs, we mean the spread and the commissions
managed from the broker that we use: but we will see this in detail.
In addition to this, it must be said that, obviously, in intraday transactions,
the gain is "limited." Limited in the sense that, objectively, we cannot make
significant gains from a single intraday trade, as it could happen for a long-
term trade kept open for months. This is because price movements are
usually never so large as to allow for high pay-outs, except for the case of
macroeconomic news that have a significant impact on the market and
make prices jump enormously. But these events are now quite rare.