The nature of certain trades requires them to operate during nighttime hours and weekend periods. The market does not request authorization to create gaps. The market takes advantage of stop-loss orders while disrupting trading plans and testing investor self-control at times when market liquidity reaches its lowest point. The guide provides you with a functional system to determine which positions to maintain and which to reduce and when to liquidate before the market closes on Fridays. If you want a clear rules-first baseline apply for a Funding Rock account.
Why weekend gaps are different
The market allows you to make adjustments during the day but not during weekends from Friday to Sunday. The market becomes less liquid during this time which causes spreads to increase and prices to start far from their previous closing point thus turning a well-placed stop-loss into a less favorable trade. The practice of holding positions does not become wrong but it becomes costly when traders fail to set proper risk management rules. You need to establish specific rules which define when holding positions aligns with your edge strategy and when it represents false confidence masquerading as conviction.
Start with policy, not opinion
Before any analysis, confirm the rulebook you trade under:
• Are weekend holds allowed on your instrument?
• Are there restrictions around major events (elections, OPEC, central banks)?
• Is your drawdown measured on equity rather than balance (most are), meaning a gap can breach limits even if last week’s P/L looked fine?
If any of this is fuzzy, flatten. Ambiguity is not a trading signal.
The three-question decision
Ask these in order—if any answer is “no,” you flatten or trim.
1. Structure: Does your stop sit behind real higher-timeframe structure, not just a round number? If a normal weekend gap hits your stop, would your thesis still be valid a few ticks beyond it?
2. Catalyst map: Are you past the primary catalyst, not in front of it? Gaps are more violent when the story is unresolved.
3. Risk math: If you sized down by 30–50% and the market opened against you by a typical gap for this symbol, would your equity still be above your personal and program limits?
Size and partials that survive the open
If you keep the position, reduce to a size you can emotionally and mathematically tolerate. Bank a partial if you’re already in profit, and trail the rest behind structure—swing low/high, not P/L. Think of it as buying a cheaper weekend ticket: less exposure, same thesis.
The Sunday open protocol
Treat the first 15–30 minutes like a different market:
• No fresh entries in the opening five minutes. Let spreads normalize and early whipsaws clear.
• Spread check: If spread is >1.5× its weekday norm, wait.
• First retrace rule: If you were slipped through the stop, don’t chase the rebound. Let the first retrace print; if the structure is still valid, re-plan with fresh risk, not revenge.
Hedge when you can, not when you must
If your platform and your rules allow, consider micro-hedges (correlated instrument or smaller counter-position) when you know you’ll hold through scheduled risk. A small, intentional hedge into the close is a better choice than a panicked offset after the gap.
Build a tiny gap ledger
Gaps feel random until you measure them. Log the last 20 weekend gaps for your instrument: average size, largest move, and how often the first 15 minutes fully or partially retrace. This turns folklore into numbers and informs both stop location and expected slippage.
Example scenarios
• Keep it: You’re long after a weekly break-and-retest, the key event cleared on Thursday, and your stop sits below a clean weekly swing low. You trim size, trail under structure, and accept normal gap risk.
• Trim it: You’re up +1.5R, but the stop is tight under Friday’s intraday low. You bank half, widen the stop behind the real structure, and carry the remainder small.
• Flatten it: You’re holding purely to avoid minimum trading days or out of attachment to the idea. The catalyst is Monday, the stop is close, and your DD buffer is thin. You close, sleep well, and re-enter on a fresh structure next week.
Journal in one minute
After the weekend, record five lines: why you held, event map cleared, position size and stop, result including any slippage, and emotion tag (calm, hesitant, euphoric). Add two screenshots—Friday close and Sunday/Monday open. Patterns will pop in a month, and your hold rules will tighten themselves.
Summary
Weekend trading safety stems from established rules instead of showing off. You should begin by following the program rules before asking for extended trading hours and a clean catalyst map and risk assessment that maintains its value during normal market gaps. The Sunday market operates independently with its own spread characteristics and time-sensitive conditions which you should understand. A small gap ledger combined with a one-minute journal will help you make trading decisions based on numbers instead of emotional reactions.
