I wanted to start this thread because I see so many traders wanting to know how to trade news releases. I want to start by saying that I have not traded this method for very long but the time I have traded it I have had pretty good results. I have used it for nearly 4 months now. I figured if I post this strategy then we can all look at it and see if there are any areas for improvement. The way it stands right now is making profitable trades around 80% of the time. But I am always looking for ways to make any system better.
Here is what I have been doing so far:
Currency: GBP/USD
TF: 15M
SL: 20 + spread
TP: 20 pip Trailing Stop
Once the news is released we wait until that candle closes which is 15 minutes after the release.
Set 2 pending orders at the opening of the next candle.
1 Sell order 2 pips below the low
1 Buy order 2 pips above the high
Once we are breakeven then we close the other pending trade. If the 1st oreder is stopped out then leave the other pending order open.
No trade if the news release candle moves more than 70 pips
There are 8 News releases I trade.
1) Non Farm Employment Change
2) Trade Balance, Import Prices m/m
3) Producer Price Index m/m, PPI
4) Durable Goods Order
5) Gross Domestic Product q/q (p) GDP Deflator q/q (p)
6) Nonfarm Productivity q/q
7) Retail Sales m/m, Retail Sales excl. Autos m/m
8) FOMC Interest Rate Statement
I will post some examples here soon....
Here is what I have been doing so far:
Currency: GBP/USD
TF: 15M
SL: 20 + spread
TP: 20 pip Trailing Stop
Once the news is released we wait until that candle closes which is 15 minutes after the release.
Set 2 pending orders at the opening of the next candle.
1 Sell order 2 pips below the low
1 Buy order 2 pips above the high
Once we are breakeven then we close the other pending trade. If the 1st oreder is stopped out then leave the other pending order open.
No trade if the news release candle moves more than 70 pips
There are 8 News releases I trade.
1) Non Farm Employment Change
2) Trade Balance, Import Prices m/m
3) Producer Price Index m/m, PPI
4) Durable Goods Order
5) Gross Domestic Product q/q (p) GDP Deflator q/q (p)
6) Nonfarm Productivity q/q
7) Retail Sales m/m, Retail Sales excl. Autos m/m
8) FOMC Interest Rate Statement
I will post some examples here soon....