I trade the news with EURJPY & USDJPY (both 2 pip spreads). Only sometimes GBPUSD (3 pips) if the news is in UK. GBPJPY is 6 pips spread and is too much for my system. EURJPY is moving quite nice during the news, between 100 to 220, sometimes 300 pips. Higher spreads are just waste of money and don’t go well with my system.
I buy and sell at the same time with 15 pips S/L just before the news. If the news is no-event, then I lose just spreads. The bigger the movement, the GEOMETRICALLY more money I make.
Basically it’s S/L & T/P system, but loss is limited to 15 pips, profit us much as the movement goes times 3-10.
Whatever system you use, don’t waste money on the spreads. Before I was paying 10, then 9, then 7, now is 6 pips for GBPJPY. But I think it’s still too much. I don’t trade GBPJPY any more, just EURJPY, since this par also moves fast and nice.
Good trading!!!
I’m very happy for you.
It’s just the ‘never lose’ part that worries me!!!
For those new to trading I’m afraid that statement is just a ‘tad’ misleading. News traders from what I gather have to really know what’s going on to be successful and I can tell you that if you had to use this approach with at least one of the brokers that I trade with BOTH orders would get executed and stopped out before the movement I can assure you (and I’d ‘wager’ that this applies to 99% of the brokers out there).
Please don’t get me wrong: I not ‘knocking’ you or your trading method. If it’s working for you then I could not be happier for you BUT it’s just the ‘new kids on the block’ that will see the ‘never lose’ part and then try this thinking it’s easy and the market and/or the brokers will feed them their ‘ars*s’ on a plate in a heartbeat.
This “Never lose” part is really just a catch phrase to draw attention. I know there is no system that you never lose, just percentage of losing and winning trades and their volume must in the long run be positive.
To get even the movement must be at least 38 pips in my system. Otherwise I lose 4 pips on spread when no move or between 19 and 34 pips when too small move. Since during the news the move is at least 80 to 150 and more on EURJPY, I make progressive profits.
Luckily I have no problem with opening oposite trades with my broker. Also during important news I can enter a trade, but I always put pending orders instead so I don’t have any problems at that time.
I am still kind of a beginner, but I tried out a few systems. This one I developed myself, but I used a similar system before.
what broker?
Hi DARIMAKO, could you share how you analyse the news and trade it?
I never bother news at all… but currently developing a system betting on non trending price… so to avoid losses is by avoiding news time… and i see quite interesting…
Many always talk about not getting in trade during news times… whats the difference if you enter earlier knowing that news time is around… in the end just predict up or down…
if you’re placing the trade right before the news event you will definitely have big slippage especially if it gaps against you.
Hi 1)which kind news U trade ? 2)whots abbout exit ?
how to know the news will make the price up or down??
As far as i’m concerned, I only use news times for it’s votility… in the end is a betting game issnt… haah
This is the most popular system for trading the news… But it is very difficult to set two orders accurately and very closely (say 1 minute before) to the news release. To solve this problem I have written an Expert Scripts.
Here you can set News Time, Order Time, Order Price, Stop Loss, Profit Target, Order Cancel Time and Position close time and the script will open two pending orders according to these settings. You can set as much news time as you wish at a time (say all important news of the week).
I think it will be very helpful for news traders. Please download attached zip file, read NewsTrading.doc and try it in any MetaTrader demo platform.
Plese check out the attached file for more details.