The goal of the boomerang technique is to get in and out of the market quickly, and although the per trade gains are not large, the approach has a high winning percentage because of the market’s tendency to drift at this time of day.
One more important point: This strategy assumes interest will be charged or credited at a particular time of day. While many market makers charge or credit interest at 5 p.m., this is not a uniform practice. Rules for the payment or collection of interest vary from one market maker to another, so be sure to check with your broker for these important details before attempting to place a trade using this strategy. Successful application of the strategy depends on not being charged interest.
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