I considered myself a new trader, and it was only recently I decided to make it a full time engagement. I had very mixed successes and failures, my successes were modest, but my failures adds up to be quite epic over time. Thanks to the generous sharing here, I have changed the way I look at trading, I am even seriously considering going to the O platform.
Thanks and wishing you guys every success!
I had a few questions about the new strategy:
1. If one order is triggered do we automatically cancel the order that is not triggered? (OCO)
2. If not, do we cancel an order that is not triggered after a period of time?
3. How soon do we move the SL to zero?
4. Do we filter trades based on the spread?
5. Do we filter trades based on slippage?
As soon as the order is filled, I'll cancel the other that is not, although I'm not sure if that's Tony's intend. I have tried similar strategy before, and had been hit with stop losses on both directions.
If possible at all, you should move SL to zero as soon as you are in positive numbers. But this isn't always possible or necessary. When trading news, the initial surge can be so fast, your profit target or stop loss gets hit before you even had a chance to move the stop loss to zero.
The key to success here is low spread and slippage. Which is why EURUSD is the pair of choice. With a low stop loss strategy like this, difference of 1 pip spread is mammoth. Especially when news release gives a mixed picture, prices would tend to oscillate between two extremes, and you need every bit of space to avoid your stops getting hit.
Slippage is also a major consideration in news trading, because of slippage, your order may get filled at a disadvantageous rate, which makes it a bigger gamble to come out profitable. I have heard of - although never experienced spreads or slippage as big as 20 pips during volatile sessions. So bear in mind, sh!t happens from time to time. Every bit counts! Which is why O broker seems to be so popular here.
Thank you. I work full time so can't trade this strategy manually - I've found a straddle EA so ill start demoing that this week
A quick one. First i need thank you for sharing. Regardless of results, sharing is the biggest bless anyone can offer.
I have read your post 1 and it's attachment several times. It makes me nervous every time I see you stating none finished work and to be continued at the end. Now I have read the last 50 pages of the thread.. Would this do the job or I have to read more in to the history? Does post 1 cover most of the gist?
I have to confess I should've dig in deeper before I pop the question.
After looking through the past news announcements posted on the economic calendar at forex factory it appears as though this method is most useful on major (red) news announcements. I looked through the news for the EUR, GBP, as well as AUD, and the situations that trigger heavy, one-way momentum are almost always the major news. The moderate (orange) new announcements do move the market as well but not nearly as effectively as major announcements. This fact alone takes away from the probability of the strategy. I think that because a news straddle relies on strong one way movement it is in our best interest to trade only the major new announcements.
However we need to be extra cautious when potentially conflicting major news are released at the same time. The market might not know how to react and prices could oscillate between extremes, resulting in both sides triggered, and getting hit by stop loss on both sides.
Been there, done that. It was painful as hell.
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