One of the most popular news trading strategy is - setting two pending orders in either side of the market price just before the news relies. One is Stop Buy order 20-30 pipe above and another is Sop Sell order 20-30 pip below the market price. 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 built this 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. Download attached zip file, read ReadMe.doc and try it in any MetaTrader demo platform.
Please let me know your experience on this script.
What pairs do you recommend on this strategy?
Also, what news events would you consider important to place the trades around? I’m fairly new to forex so I kinda green with it comes to what moves alot from the news.
First of all, if you are new in forex, news trading is not for you. It requires a lot of experience to be profitable in news trading.
However you can start practice on any demo platform.
For important news wach out different forex calander available on line. One of the most popular calendars is provided by ForexFactory.com
Selection of currency pair depends on news events. For important news on USA you can select USDJPY or GBPUSD, for news of Australia you can trade on AUDUSD and so on. First of all you should watch the market movement very closely because you have to chose not only a currency pair for a news event but also profit target and stop loss level as well. The similar news events come in regular interval as some of them are monthly and others are quarterly news. If you watch them regularly you can assume which news for how mach deviation from expected value can produce how much movement in the market.
The main advantage of news trading is - you have to work just at the news time, say 20-30 minute per news. Like all other trading strategy news trading also produce some losses, but as your experience grown up, you can make more profit than loss.
I’ve tried this method a few times on demo account, and it did work for me! however never tried this on live… too scary. how’s your success rate on this one? and if you have had some loss how much pips did you lose?
I also tested it on demo account only and i found it very useful tools for news trading. In worst case when a news makes very quick spike, it can loss both stop limit. If you set 20 pips stop in both side, your maximum risk is 40 pips in that trade.