Best Time Frame in Trading: Day Trading, Swing Trading, Trend Trading, and Position Trading — Comparative Analysis

Which time frame is best in trading? We believe the best time frame in trading is daily bars. Every time frame has its pros and cons, but we recommend being agnostic and open for any time frame. You simply have to pick the best time frame that best suits your needs and where you can get an edge. After all, one dollar made by using daily bars has the same value as gains in any other time frame.

We do day trading, swing trading, and investing. The time frame spans from some hours to decades.

We do this because we want to spread our investments into many time frames to get the most efficient use of our capital. Furthermore, we do it to spread out risk and decrease correlations.

If your long-term investments have a bad year, as you invariably will experience sooner or later, your paper losses might be offset by day trading and swing trading that might perform completely differently.

This chart explains what we mean (shown in the image below)

The red line is the performance of a multi-strategy hedge fund, and the grey line is the Swedish Total Return Index (SIX). We want a smooth equity line.

Can the strategy be improved or made different? If you have any suggestions, please comment 👇

You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/which-time-frame-is-best-in-trading/

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