NFL News today (05/02). Just after the news AUDUSD suddenly up-not too much-but then immediately followed by the real sudden drop 5 times bigger than the first moved, all in less than 20 secs.
The two sudden volatilities:
Moved up 20 pips
Opposite movement, a quick drop of 100 pips.
So, instead of having a Short position, the quick reversal movement triggered the Long position… because the price spiked up first without touching the Profit target. Unfortunately, the market moved to the opposite direction much larger than the first initial movement.
Is there any special EA NEWS with the special features on how to respond to whipsaw? And how to react quickly… faster than just BEP that only lock some profit… but we never know how wide is the spread during the News time, right?
imho deactivate any EA’s just before any big volatility news;
if you still want to trade such news, do it manually just to test your reflexes and for the love of the game (roulette/black jack, you name it);
are you better than this dude below? check and see
(Lucky Luke, the man who draws faster than his shadow)
I’d first ask how much experience you have trading across the board? Trading arguably the most market-moving release is something which newer folks should avoid while they learn. Avoid in terms of staking “live” capital on the trade.
I recommend trading demo accounts around NFP, for 3-5 months before developing a strategy and executing it with 1:1 leverage. Once you’ve identified an edge, maybe then move up to 5:1, 10:1 - or wherever you’re comfortable…
This is just an idea.
You predict where the big push will happen. In your case NFP would mean short for AUDUSD.
Then place 1 big or more small SELL entry orders with TP:1-5 pips and SL:2 pips in the direction of the spike, at 10-20 pips below the price.
1xSELL20K TP:3pips SL:1pip
2xSELL10K TP:4pips SL:1pip
or something like this.
This is not how I trade, but can be something to discuss here if it is doable or not.
I put sell stop and buy stop both at 10 pips away. Remember this all about News spikes (sudden moves) So it has nothing to do with Limit sell or Limit buy.
