100 pips went down to 50 and now 70
i would decide to hold on 200 from 300 pips totall
I will decide to break even
Ill post if necessery
Thanks
Guys and newbies , i like to advice on one thing
I made this thread
Never ever ever trade news and spike unless you (enjoy) to do it depends on your ability and IQ talent that you have in yourself ,
There are a lot of opportunity in other times session that you can find a way to trade , there is alot way you can trade with your money , go observe and investigate it there is nothing you cant do
Trading the news is exciting, but for trading the real news you have to study several outcomes before you try to trade any news. There are many traders that take advantage of the fast price movement that occur near news but not many that actually prepare for a news result by studying it from the past.
I just find the baby pips blogs ,its nice to see their trade idea and informative group remain there
Great ideas from all of you, waiting to hear more.
[QUOTE=“fxstrategist;765711”]Great ideas from all of you, waiting to hear more.[/QUOTE] Hey thank you In forex there is no good way to determine volume so the best thing to measure the momentum is price action
Trading the news is one good method of making quick money in less time. But you have to be an expert in using Mt4 because you have to place pending order very quickly prior to news.
News contribute greatly to movement of currency pair, that is why we can’t ignore our fundamental analysis. The big drop in the sterling of late has been as result of UK referendum vote to leave the EU. Similarly the US dollar is well connected to the interest rates decisions from the US Federal Reserve. You can enjoy reliable execution with a no-freezing platform during news releases while trading with real time economic releases platforms like the Profiforex MT4.
Greetings, I used to trade the News and there was something that worked aLthough you will need an EA to implement it effectively.
Open a hedged position one minute before the news is released. 5 Seconds before the release, set a stop loss and take profit on each position and be sure to include a trailing stop to initiate the moment one of your hedged positions hits its stop loss.
This will only work with a fixed spread broker that executes at the quoted price (most definitely do not use FxPro and their deceptive “Fixed Spread” VWAP Execution - Try City Index, but you will only get away with doing it once before their risk team flags you up and they start inventing new higher stop distances to apply to your trading account) . Try and find a broker with as low a minimum stop distance as possible - you can try ECN but much of the advantage in parcelling the risk to the broker is taken out and manipulating the relative Stops and TP given the varying spreads is tricky: it can work in demo but does not materialize in real world execution, the slippage is too much and adjusting for the varying spread makes the overall risk incalculable (Although you only need to adjust the tp and sl in the moments before the surge as the spread usually narrows to normal levels on the actual spike, for ECN the initial stop would have to be a trailing one as well, take a ‘snapshot’ of the spread as a baseline 10 seconds before the release and + or minus your tp and sl distance accordingly with movements from that baseline as you only want to capture the real movement and not spread variation; conceptually the movement of the midpoint between your ask and bid).
You should expect slippage in the range 5 - 8 pips on your initial stop loss, so make sure the TP distance at 70%+ probability is suitably high and leave some wiggle room in the trailing stop; you should be only risking 2 - 3 pips overall as your negative slippage one way will be made up on your opposite position.
Please have a look at the website in my last reply. It has all the non aggregated data for the magnitude of spikes to the tick level on multiple news items and pairs going back some years, from this you can work out the probability of the spike range to set your stop loss and take profit: Ideally your take profit should be 70% or more probable with a view to hitting take profit, waiting on the trailing stop I found problematic because of the slippage on the initial stop and slippage on the trailing stop for the spike correction.
This is based on old data, but as an example you might want to trade Employment Change on AUD with AUDUSD Buy & Sell, 5 seconds before the release: SL = 13 pips TP = 33 pips both ways (where prob(spike at least 33 pips >= 75% in this case)), the SL will need to be high enough to discount the temporary movement when the market is deciding what to do. If in this example the 1st minute spike is up 50 pips, the sell should close at 13 pips+ slippage making a loss whilst the Buy makes equivalent gains on the other side minus the spread, at that point the trailing stop kicks in on the buy to lock the (equivalent) profit in whilst TP remains to capture the upside on the bullish surge.
I found pending orders implement too slowly and with too much slippage.
To save you some time the best spikes are:
Non Farm Payroll–
Employment Change–
Retails Sales–
GDP–
CPI–
On USDCAD, AUDUSD, GBPUSD for the surest surges and lowest…best? risk reward.
Although the spikes on cable were quieter the last time I checked as we now, annoyingly have a bank of england governor that knows what he is doing. But I haven’t looked at it in a while. the amount of risk you put in is obviously your call but I used to go all in as the overall risk on a 2 pip negative was small and something like EC on AUDUSD for example should fetch you 100 to 135% return given the additional effective leverage in the GBPAUD exchange rate; I would advise to withdraw any surplus account balance money not going in on the trade, and ride close to margin call (margin call should be a loss of just above your max risk of 2 pips in this example: as an additional backup).
Your EA should implement every millisecond as well as every tick, speed is obviously important and backup your stop loss and take profits with a Orderclose() command triggered by the equivalent PnL values for your SL & TP. You can also just use orderclose rather than setting a tp and sl if you want to hide those levels from your broker, but I found it to be less effective - more slippage.
I would recommend trading it through a VPS to increase reliability and speed and also I would prefer to sleep when something important on AUD is coming out at 2 am. But I did notice a time lag to GMT on my VPS which might need to be watched out for, corrected.
I wouldn’t recommend waiting on the news or trying to guess the market reaction to the news as it is very unpredictable in the 1st minute and the move usually happens at seconds 58 to the announcement, long before your refreshing the screen to get the actual news data.
Ropunzel special thanks for the post above Most of the books ive read it and flip them some 1000 or 500 pages are 95% on same conclusion and results for how to trade and invest just some over talking making it more confusion and some less written , they cant change the reall concept and no one can do it , they try make it seems harder but its not , some trick and tips is there in the market that can be gain by experience and maybe its not mention in the books at all I personally didnt find that book talk about that probabilities that ive use and see, thats why they say trading the way it works for you no one being advice to be follow by them, all the knowledge and trading plans can be write on only one (page A4 size)
We have too many poker player that everyone know the game but who win the most
If you cant explain it simply , you don’t understand it well enough .
There is also an easier way to ‘trade the news’.
On Thur past if you go to the BP calendar, select only GBP and high impact, you will see that by 12.00 there were 5 news items, four of which were better than expected, the 5th being the rate decision which was as expected.
So on Thursday afternoon the pundits explained that GBP didn’t react positively to all this good news because it was already factored into price - maybe true, but maybe think a little beyond that often quoted platitude.
Was it more likely that whatever news, good or bad, there was simply no one (of size) left that was willing to buy GBP. Then take that a little step forward, if there are no buyers then where is price likely to go.
Hence a few ‘news traders’ were selling on Friday.
Very often it is that simple.
the quiz and answers in babypips is simply amazing for anyone interesting , it tells alot
Quiz : Who trades Forex?
- Of the following answers, which is the biggest disadvantage of going through a centralized exchange?
Correct Answer:
Price manipulation
Your Answer:
INCORRECT
Explanation:
See the explanation in the School of Pipsology- Which entity sits at the very top of the forex ladder?
Correct Answer:
Major banks
Your Answer:
INCORRECT
Explanation:
See the explanation in the School of Pipsology- Which is an example of a decentralized exchange?
Correct Answer:
Forex market
Your Answer:
INCORRECT
Explanation:
See the explanation in the School of Pipsology- The collection of the world’s super banks, which determine exchange rates, is also known as what?
Correct Answer:
Interbank Market
Your Answer:
INCORRECT
Explanation:
See the explanation in the School of Pipsology- Which Central Bank policy action tends to have the biggest affect on exchange rates?
Correct Answer:
Adjusting interest rates
Your Answer:
INCORRECT
Explanation:
See the explanation in the School of Pipsology- Which market players account for roughly 90% of trading volume?
Correct Answer:
Speculators
Your Answer:
INCORRECT
Explanation:
See the explanation in the School of Pipsology- Which global agreement set the exchange rate of all currencies against gold?
Correct Answer:
Bretton Woods System
Your Answer:
INCORRECT
Explanation:
See the explanation in the School of Pipsology- In a free-floating system, what determines exchange rates?
Correct Answer:
Supply and Demand
Your Answer:
INCORRECT
Explanation:
See the explanation in the School of Pipsology- Which of the following is an advantage of retail forex brokers over the interbank market?
Correct Answer:
Smaller account sizes available
Your Answer:
INCORRECT
Explanation:
See the explanation in the School of Pipsology- Which among the three is not a type of broker?
Correct Answer:
Trade Maker
Your Answer:
INCORRECT
Explanation:
See the explanation in the School of Pipsology- What does “ECN” stand for?
Correct Answer:
Electronic Communications Network
Your Answer:
INCORRECT
Explanation:
See the explanation in the School of Pipsology
You can trade high impact news by using pending orders. Its an old technique that can win you some fast pips. But you need practice and have to have an account separate for this kind of trading.
News trading is very exciting but you have to be very careful. Often the slippage causes more loss than your stop loss. So you must have a separate account for high risk news trading.