Forex Market Hours Explained: When Your EA Should Trade — and When It Should Stay Quiet

Published: 2026/01/08 Updated: 2026/01/22 Permalink
Forex Market Hours Explained: When Your EA Should Trade — and When It Should Stay Quiet

Forex runs 24 hours a day, five days a week. But anyone who has traded seriously—especially with an EA—knows this truth: not all hours are worth trading.

Forex Is Open 24 Hours, But the Market Is Not the Same

In theory, Forex never sleeps. In practice, the market changes its personality depending on who is trading, how much volume is flowing, and what kind of information is being priced in. Many losing EAs fail not because the logic is bad, but because they trade at the wrong time. Understanding market hours is not optional—it is part of the strategy.

Main Forex Trading Sessions (JST)

Tokyo Session (09:00–15:00 JST)

Market Character:

  • Low to medium liquidity
  • Small price movements
  • Range-bound behavior

Active Pairs:

  • USD/JPY
  • EUR/JPY

EA Suitability:

  • Range or mean-reversion strategies
  • Very short-term scalping

Trend-following EAs usually struggle during Tokyo hours. Breakouts often fail, and profits are limited. For many systems, doing nothing is the best trade.

London Session (16:00–24:00 JST)

Market Character:

  • High liquidity
  • Clear directional moves
  • Stable spreads

Active Pairs:

  • EUR/USD
  • GBP/USD
  • EUR/GBP

EA Suitability:

  • Trend-following strategies
  • Breakout systems

This is where most profitable EAs do their real work. If you must choose only one session to trade, London is usually the answer.

New York Session (21:00–05:00 JST)

Market Character:

  • High volatility
  • Strong momentum
  • Frequent economic news

Active Pairs:

  • USD-based pairs
  • EUR/USD
  • GBP/USD

EA Suitability:

  • Momentum strategies
  • Post-news continuation systems

This session offers big opportunities—but also big risks. Without news filters and strict risk control, an EA can lose in minutes what it earned all week.

London–New York Overlap (21:00–24:00 JST)

This is the most active period in the Forex market. Liquidity peaks, trends accelerate, and real breakouts happen.

For well-designed EAs, this is the golden window. For poorly designed ones, it is the fastest way to blow an account.

Your EA Should Not Trade 24 Hours

Running an EA 24/5 sounds ideal. In reality, it often means:

  • Overtrading during quiet hours
  • Spread losses in low-liquidity markets
  • Random entries before major news

Most of these losses are avoidable with one simple tool: a time filter.

Practical Time-Based EA Design

Conservative Setup

  • Trade only London session
  • Avoid Tokyo hours
  • Disable trading before major news

Moderate Risk Setup

  • Main trading: London → New York overlap
  • Reduced lot size during New York late hours

True 24-Hour EA (Advanced)

A real 24-hour EA must change:

  • Strategy logic by session
  • Lot size by volatility
  • TP/SL by market conditions

One logic, one risk setting, 24 hours a day— that approach almost never survives long term. Forex is open all the time, but opportunity is not. Most losing automated strategies fail for a simple reason: they trade when the market has nothing to offer. A good EA is not aggressive. It waits. It knows when liquidity is real, when movement has meaning, and when staying flat is the smartest decision. Time is not just a filter you add at the end. It is part of the logic itself. If your EA can stay silent during quiet hours and act decisively when the market wakes up, you are already ahead of most automated traders.

If this helped your EA work, share it.
X Facebook LinkedIn

Keisuke Kurosawa
Hello
Share
https://1kpips.com/en/blog/market-hours
Categories
MT5 Strategy Testing & Optimization
Tags
Forex Market Hours,EA Trading Time,Best Time to Trade FOREX, Automated Trading,Time Zones

Related Articles

Next step
Save this idea into your EA: add a session filter, then backtest with and without it to see the difference.