Understanding T-Bond Trading Sessions

Oct 13, 2024

Lecture Notes: Commodity Trading - T-Bond Split Session Rules

Introduction

  • Discussion on commodities, specifically paper trading for learning purposes.
  • Focus on ICT Mentorship, Bond Trading, particularly T-Bond Split Session Rules.

Time of Day Considerations

  • Forex vs. Commodities: Time of day has different impacts; commodities have unique time elements.
  • Session Definitions:
    • London Session: Influences overnight.
    • New York AM Session: 8 a.m. to Noon (largest volume, sets highs/lows).
    • New York PM Session: Noon to 3 p.m. (continuation/reversal/consolidation).

Trading Sessions and Strategies

  • AM Session Focus:
    • Largest volume between 8 a.m. and 9.30 a.m.
    • Forms high/low of the day.
    • Prime trading time: 8.20 a.m. to 11 a.m.
  • PM Session:
    • Can trend with AM session or deviate.
    • Riskier to trade, shorter than AM session.
    • Avoid if AM session fulfills day's potential.

Specific Trading Concepts

  • Overnight London Session (2 a.m. to 5 a.m.):

    • Tracks stops, liquidity voids, fair value gaps.
    • Not recommended for active trading.

  • New York AM Session (8 a.m. to 11 a.m.):

    • High volume, sets day’s range.
    • London traders close by 11 a.m.; reduced volume.
    • Transition to New York lunch (11 a.m. to 1 p.m.).

  • New York PM Session (Noon to 3 p.m.):

    • Often mirrors AM session trends.
    • Use AM session outcomes to guide PM trades.

Examples of Trading Strategies

  • Split Session Rules:
    • Identify price action between morning and afternoon sessions.
    • Look for moves like Judas swing, turtle soup, order block opportunities.

Key Trading Patterns

  • AM Session:

    • Large opening range indicates potential for retracement or fair value pricing.

  • PM Session:

    • Can utilize previous session’s order blocks or gaps.
    • Smaller moves still profitable due to bond value.

Conclusion

  • Overall Strategy:
    • Combine bond market insights with Forex timings for synergy.
    • Maintain a trading journal to track sessions and outcomes.
  • Next Steps:
    • Focus on identifying consolidation days and preparing for ranging days.
  • Note: Continue learning and applying these concepts to gain better understanding and success in bond trading.