Hi everyone, this is my first post—please be kind!
BabyPips.com has been very educational as well as the FORUM threads–I have been reading mostly the FA�s thread since my interest is along those lines–mainly trading the news.
When I happened into �ForexTown� and read � An almost fool proof strategy� by d3wald , I knew I had found another who was thinking along my same lines in trading the news.
Also, I would like to thank �d3wald� for the referral link to
�SecretForexSociety�.
�d3wald� I agree with your premise of using a �straddle� prior to the FA event, however, I have a little different approach.
Like you, I am using FXCM as my broker, prior to them changing from a �fixed spread� to a �no Dealer Desk�, my �straddle� strategy had been working just fine in a demo account—had not yet went to live trading, but was about to.
The dynamics changed when FXCM changed to the no dealer desk, so I had to change my research focus—I needed to know how the spread fluctuated with volatility the first minute of the FA release. My research is starting to give me an idea of the probabilities.
My approach to trading the news comes from observing what the market is doing 2 minutes prior to the FA�s–it seems to hold its breath–most of the time–allowing for the setup of an entry straddle order 2 minutes prior to the FA�s, using the last 30 seconds to modify settings and launch my entry orders.
I use a cheap little electric clock with a second hand to time me for modification of my entry order setup and launch–believe me, with some practice your mind can work the time.
I have not yet demo or live traded this strategy, probably next month I should have an idea what FA�s offer the best probability for a win considering the spread probabilities.
I would really be interested in how you are progressing with your strategy.
Good luck with your endeavors!