Are particular times of the day, month, or year better than others for trading certain strategies or currencies? Certainly, the fact that currency pairs demonstrate definite liquidity patterns in different portions of the 24-hour global forex trading session suggests specific times might be more favorable than others. There are also studies indicating certain longer-term "seasonal" influences tied to the equity markets.

But what about the advantages or disadvantages of trading currencies or certain strategies at different times of the month? Could a simple momentum strategy — a short-term breakout, for example — perform better or worse in one part of the month?

To find out, let’s look at how a basic channel breakout strategy performed at different times of the month in seven major currency pairs.