Latency issues are always frustrating, both to detect and to resolve. Here’s a case with the FXE (Euro ETF) and EUR/USD (FX). I submit that FX traders have a distinct advantage since they can trade round the clock while FXE traders have to live with what they’re offered at the open.
Top chart is the EUR in 15 minute bars . . lower is FXE in 5 minute bars. The disparity in scale allows me to illustrate the advantage of the FX approach as well as providing a few nuances of the EUR Dipper posts. The trading period unavailable to FXE traders is marked on the EUR chart with the horizontal arrows. Note how volume subsides into the daily market close and then accelerates during the overnight session, subsequently fading dramatically at the equity market open. Also note the size of the equity open pullback in the EUR relative to the pullback in FXE after the open. FXE traders are faced with a gap opening and are left with a much bigger decision regarding both entry and exit while the EUR trader is already out of the trade with money in the bank.
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