Trading the news

Hi there every1, hope that u guys are having fun learning and trading the forex. I starting trading forex about a 2 months back (still a newbie:p ) I would juz like to share my experience in trading the news. Currently i only trade USD NFP (non farm payroll) which usually comes out every 1st friday of the month (0830am EST). I saw what james describe too, but honestly, for me thats a very risky trade.

(i)Now, how to trade this news. This is what i will do, around 0825 i will start looking at the price. Jot tat down, and start doing some calculation. eg at 0825, EUR/USD : 1.3595/1.3598, set ur entry to buy at + 10 pips above the buying price (1.3608) or conservative trader can set it at +15 (1.3613), but do take into accoun the spread (eg +10 pips meaning u need at least +13 if spread is 3 pips to break even).

(ii)Set ur stop loss at the current price (1.3598) and ur limit around +30 pips or +40 pips depending on ur risk profile. for me i usually limit myself to 40 pips. So in the example above my limit will be 1.3648 if i set my entry point at +10 pips

(iii) Once done tat, do the same for ur entry to sell. In this case, a -10pips entry, stop loss and limit (40 pips) will be 1.3585, 1.3595 and 1.3545

So the next thing is to wait… once reach 8.30am the price will soar either low or high trigerring ur entry point. Eg, if the price goes down, it will trigger ur entry sell point. Monitor the price movement. If the bears are winning consistently, remove ur entry buy. Advisable to monitor the price first as whiplash has occurs before whereby it will trigger ur entry sell point and move back up to trigger the entry buy point. So wait and see the movement first (at least for the first 5 minutes)

So there u have it, 1st month i tried this method, it got me around 200 pips (40 pips x 5 lots) and last month around 400 pips (40pipsx10 lots). :smiley: within the first 10 minutes.

Points to take note of.
(i) I only trade NFP news. The highest record for NFP was around 120 pips moves but currently average about 60-80 pips.
(ii) Always use stop loss. u might get burn real bad missing this point.
(iii) if the price doesnt moves much within the first 10 minutes, probably it will not do so. Close all entry point if it has not been triggered.
(iv) remember to always set ur entry to buy and sell BEFORE 0830. So be quick and fast. If ya didnt manage to do so, DONT ENTER the trade.
(v) this method can be done on any other major news for other currency too. But personally i have not traded those. I usually stick with the US news only.

any question feel free to ask.

Hi there my friend
This is one of the oldest ways of trading the NFP but be very carefull every broker and is uncle plus worse banks and floor traders no’s this way and they will run your stop’s more often that not and you could lose a lot of money.

But good luck

James

Be careful with straddle. Most brokers can whip the spike and knock out both of your trade :slight_smile:

I do traddle too sometimes. I am using script to help me place order quickly. I would fill out all parameter before the news and wait until about 30 second to news release, I execute my script and it place all limit order, stop lost, take profit, all in split second :slight_smile:

What about slippage? Do you actually get filled at your order level?

“Be careful with straddle. Most brokers can whip the spike and knock out both of your trade”

What do you mean by that? How can a broker knock out your trades?

Hey there again ppl. Dunno whether its the oldest but works best for me. Please bear in mind i only trade the EUR/USD and not the rest of the USD pairs although if ur a risk taker, go ahead.

anyway… somebody help me to define the meaning below. Thanks

(i)straddle
(ii)slippage

hey bafukie , who do it trade with? i.e. who’s ur broker?

its good t know…coz u’re able to get your orders filled / placed at news time which some brokers kindof wont do…

i’m on fxcm …wondering if i can do that with them?

anyone with fxcm experience with this strategy?..pls do let me know abt ur expereince …with news trading & fxcm

hey dude, im using fxcm too. U should know that there are 2 options with fxcm rite? No dealing desk (which i chose) and fix spread. No dealing desk allows me to trade the news. One thing bad is that the spread might be larger than the normal 3 pips for Eur/Usd. Fix spread is as mentioned but there is a high possibility of not being able to execute the trade at the level that u wanted. So there is a high risk involves when trading the news.

hello bafukie, great to know u’re also using fxcm. Most of the ppl here trade with oanda,mt4,interbankfx etc not that many fxcm ppl.

well, i should try trading the news on next NPF in may.

do let me know if you have any more tricks you play against fxcm to make some bucks;-)

ciao !

prettrad, i only use fxcm to execute my transaction. All my charts are from MT4 and VT. Much easier to use and much more indicators to play around with. 7 days from now is NFP… so happy fishing guys

hello bafukie, how did it go today during NFP?