I am not a news trader. Recently trying to learn how to trade successfully during news. Have you ever find any strategy that can be used for trading in news time?
Sometime I am stay away from the market when news like as NFP, but sometime trying with using trap strategy with put pending order buy stop and sell stop with distance around 15 or 20 pips from running price, if one pending order hit by price hence will remove another pending order
1 Like
I generally do not trade the news but if I do I use the inside bar strategy. Most professional traders come in after the news realese. If you look at charts around a news realease you will be surprised how many times markets will react to a news realease sometimes hours after its realese.
1 Like
I don’t have a lot of experience in news trading myself, but from a couple of my mistakes i can come up with this:
Don’t rely on a single information when doing this type of trade.
Recent GBP situation is an excellent example. There was an interest rate hike announcement from the BoE. Usually, when the rate is being increased, an increase in currency exchange rate follows, but this time GBP almost broke its legs falling down. That doesn’t make sense at first, but when you look at the H4 charts on GBP-related pairs, you should notice that GBP went UP for two days before the rate hike announcement, so we can deduce that there was an overall expectation of interest rates going up and everyone was already preparing for this event. On the day of the announcement GBP exchange rate was already too high for its own sake. Actually, @Drekieyja explained what happened very simply in Trade Discussion category:
https://forums.babypips.com/t/uk-interest-rate-goes-high-but-gbp-falls/119937
1 Like
Well one piece of advice, whatever you do…do NOT trade right before the news starts. You will learn to never do that again lol it’s good to always wait after
2 Likes
My strategy to trade during the news is not to trade during the news. 
In all seriousness though, I prefer to avoid news trading. There is way too much volatility, spreads widen considerably, I don’t like taking that kind of risk.
2 Likes
I agree with this - news trading and retail forex trading don’t go together IMO.
Sure, you can have a logically based method, and you can have a good run, maybe for quite a while, but eventually there’s always going to be a disaster because news trading is exactly when a broker won’t honour your stop loss.
Your real stop loss, if you trade the news, is therefore “your whole account”.
And that’s crazy risk management.
3 Likes
I know trading in news time is risky. Still, I want to know If you have any successfull strategy to share. Thanks for participating the discussion.
1 Like
This is the important point that people need to appreciate (and it’s a point that few appreciate).
Maybe it should be mentioned, Daniel, that although there are loads of “news trading” strategies online, and counterparty brokers of course love retail forex traders to try them, and encourage their use, it’s actually pretty anti-social to post them in a forum.
It’s just a way of ensuring long-term losses - sometimes account losses - by the members.
These strategies can look great, and they often lead to a good run and a series of small profits before the wipe-out hammer inevitably drops.
In a beginners’ trading forum, it’s much more beneficial and valuable to point out how dangerous and unwise they are.
So Lukas certainly has the right idea, and we should thank him for it. 
2 Likes
Do we have a blacklist of these disreputable people ?
There are some disreputable ones, certainly, but this issue doesn’t directly relate to whether any given broker is reputable or disreputable - it’s about sudden spikes in the market, which aren’t that rare, when you’re dealing with news, and especially with unexpected or surprising news.
The point is simply that if the broker can’t get their own stop honoured, then they can’t honour their customers’ stops, which is always made clear in their t&c.
“News” is when this happens.
It’s the highest risk time, of all times, to trade.
If you do enough of it, eventually there’s going to be a disaster.
It isn’t necessarily anyone’s “fault” and it isn’t necessarily about brokerages being “disreptuable” (though some are indeed worse and higher risk than others, and how and where they’re regulated may carry some clues to that): it’s just the way counterparty brokers work.
Stop losses are not always honoured, and trading the news is the way of maximizing the chances of that happening.
Look at the overall success rates for retail forex trading and ask yourself this question: should people trying to achieve long-term profitability be doing things that put the odds a little more in their favour, or things that expose them to additional, unnecessary risks?
It’s not really that difficult to judge, I think?
1 Like
Have you ever had a stop dishonoured LV ? - Anyone ? I certainly never did on the DOW.
I am under the impression that the size we trade, our bets never make it to the greater market anyway ! Therefore a broker refusing to honour your stop I beleive is behaving Badly.
Falstaff, everyone who’s a long-term retail trader, for a living, has eventually encountered this. You’re clearly not. I’m not saying that to criticise or to try to belittle you in any way: most people here aren’t (but the ones who are are the ones who are saying the best strategy is to avoid trading the news), but those with more experience have learned this one!
I have, a couple of times, fortunately not ruinously expensively but I’m very careful in my choice of brokers.
It happened to me (as it can to anyone) with sudden, unexpected news.
But to trade scheduled news is to invite it, which is reckless and will eventually cause a problem.
I have no incentive or reason to want to try to change your beliefs, but you’re mistaken. (Discuss it with the information department of a regulator, if you don’t believe me.)
Can’t possibly put it any more clearly than this - so I give in.
1 Like
You’re right that I am not a “Long term retail trader, for a living…” It is 10 years plus since I have traded real money at all and then it was on the “DOW” which Did gap and did gap over stops. The Forex as I understand it - (It’s written somewhere on here " ) “Does not gap” although it looks suspiciously like it some weekends !
I make no secret of the fact I am a novice in Forex and just “Paper Trading” until I “get the feel of it” One area which does interest me is the “News area” - we used to discuss how to trade it on the Dow back then, with Tom Hougaard - who was Chief Tactical Trader for City Index at the time (I just looked and he has some videos out, Knows what he s talkingabout that lad - He was interveiwed on Bloomberg for picking the exact day of the bottom, on Bloomberg - some 15 MONTHS before it happened ! ) - sometimes you’d lose big, sometimes win big - but usually “Normal sorts of amounts” and certainly nothing “Account threateneing” !
The time I lost a third of my account trading DOW it took around 3 weeks to gain 10% which was at that time 600 points until I capitulated having lost about £1800, which is a little but not much more than I had wasted getting stopped when out trying to get “IN” - It was just a turning point and had nothing to do with any “news”. - THAT was the day I picked the exact Bottom of a huge downtrend which you can still see on the charts in 2003 - the exact bottom - it went my way for 2 hours, then entered a “Retracement” as it had done already 5 or 6 times stopping me out every time !
Whether you are a "long term retail trader for a living… " I don’t know, I haven’t checked your profile or previous posts, but certainly you imply that you are and as such I bow to your superior knowledge and experience in this market
However @LukasVisser To lose your whole account because of a “news item” means you are trading way too big ! - As you say - they could damage you a bit but mainly in the “Pride” area imho !
LC - Having just watched “Hougaard on News” - referenced above, that is somebody I do have a lot of respect for and the video I linked says that not everyone gets filled on the “Jump” - so it is NOT real !
Apologies - it appears the FOREX DOES “GAP” - even tho they pretend it doesn’t. 
If you say so, Falstaff. Sorry to have troubled you, and good luck in the markets.
One can almost hear the waves of insincerity breaking upon the shores of apology ! 
news=algo time. as a human, don’t do it. you’ll lose.
Observe over a period of time, the sorts of actions which happen on “News” - There aren’t that many.