Weekend gaps can easily hit daily drawdown limits if something unexpected happens in global markets. Do you always close all positions before Friday market close, or do you swing trade across the weekend?
Most experienced funded traders prefer closing all positions before Friday market close to completely avoid weekend gap risk. When trading with prop firms, holding trades across the weekend can be extremely risky because unexpected geopolitical or macroeconomic news often triggers massive price gaps at the Sunday open. If a gap opens against your position, it can instantly breach your daily drawdown limit and fail your evaluation or funded account before you even have a chance to manage the trade.
While some swing traders rely on wider stops and smaller position sizing to absorb weekend volatility, strict risk management usually dictates flattening the board on Friday. How do you handle your open positions at the end of the week? Drop your strategies below!
