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Trading before news or after

  • #1
  • First Post: Jul 18, 2019 3:22pm Jul 18, 2019 3:22pm
Hey guys, i need real advice from traders that making money from the market, are you trading before news or after, if you are trading before..how much time before? What is your limit..im asking that because i have trades that triger few hours even a hour before news, and sometims they succeed and sometims they dont..im a scalper and i have few trades by week so i need to take what i can..
  • #2
  • Jul 18, 2019 4:28pm Jul 18, 2019 4:28pm
Obviously depends on your MM, method and level of pain resistance.

But trading IMHO should be best traded reactionary. Wait for news and trade accordingly. Not a guarantee since the market does what it does. I prefer looking at patterns (technical) first then news. At times news will complete a pattern so I trade based on Technicals first then wait to see if news completes pattern. If not then pattern was not there. When no pattern is present then I trade off of news only. I stay away from high volatile news.

However, since you scalp I would stay away from news.
Invest in Life
  • #3
  • Jul 18, 2019 8:24pm Jul 18, 2019 8:24pm
Quoting Mundo
Obviously depends on your MM, method and level of pain resistance. But trading IMHO should be best traded reactionary. Wait for news and trade accordingly. Not a guarantee since the market does what it does. I prefer looking at patterns (technical) first then news. At times news will complete a pattern so I trade based on Technicals first then wait to see if news completes pattern. If not then pattern was not there. When no pattern is present then I trade off of news only. I stay away from high volatile news. However, since you scalp I would stay...
thank you for your comment,
in my strategy i got sometimes also technical patterns and a lot of times before the news they trigger..and because i'm not a fan of trading before news, i missed it, and thats make me missing an income..
  • #4
  • Aug 12, 2021 9:51am Aug 12, 2021 9:51am
Quoting benjamin89
Hey guys, i need real advice from traders that making money from the market, are you trading before news or after, if you are trading before..how much time before? What is your limit..im asking that because i have trades that triger few hours even a hour before news, and sometims they succeed and sometims they dont..im a scalper and i have few trades by week so i need to take what i can..
From the reading I had done, "Trading News" had implied trading before the news and for some, trading at the instant the news is released. I haven't seen anyone talk about this but trading (after) news is the thing to do. Say 30 minutes after, 1 hour after, etc., depending on your strategy. I'll be adding this to my list of things to demo haha
  • #5
  • Aug 13, 2021 7:30am Aug 13, 2021 7:30am
Quoting Mundo
Obviously depends on your MM, method and level of pain resistance. But trading IMHO should be best traded reactionary. Wait for news and trade accordingly. Not a guarantee since the market does what it does. I prefer looking at patterns (technical) first then news. At times news will complete a pattern so I trade based on Technicals first then wait to see if news completes pattern. If not then pattern was not there. When no pattern is present then I trade off of news only. I stay away from high volatile news. However, since you scalp I would stay...
the problem with news is sometimes the movement happens much befor the news is due so hard to fully work out when this will be. I personally would trade after if significant news but generally focus more on the technical
  • #6
  • Aug 19, 2021 9:34am Aug 19, 2021 9:34am
If we talk about when it's best to trade, there's the 15-minute rule.
It's pretty simple. We don't trade 15 minutes before and 15 minutes after a news release. It is considered, by the way, as more risky interval (the rule of 30 minutes is more conservative), however, it allows us to capture some of the furious movement that the news gives to the market, but in a calmer form, because some time has passed.
And thus, having defined the important news, it is necessary to wait and enjoy the picture, as the price carries, as abnormal, on all chart, beating out stops in forex. This circus (there's no other name for it), always brings a wry chuckle.
Fifteen minutes after the news release, as a rule, there is a pullback against the news trend - who wanted, played, the rest cautiously groping for a reversal. However, it is often short-lived.
Personally, I use the 1 hour rule and do not enter an hour before or after strong news. But, there are exceptions. If you see that the pair has reacted sluggishly to seemingly breaking news, you don't have to wait that long.
  • #7
  • Aug 21, 2021 7:27pm Aug 21, 2021 7:27pm
For those that run EA's there is also a high probability that the EA would have opened a trade before major news releases such as the FOMC. I have been stung pretty bad during that event and have taken a week to recover my losses. I only trade on the 0.01 level so even if the market swings not in my favour I have been patient enough to ride it out and not make any new trades during that time. I have learned to turn off my EA about 4 hours before any news event and close any profitable trades even if the profit is around the $0.20 mark. I would rather close a winning trade and miss out on making a major profit than watching in horror as the price swings not in my favour and being forced to make the decision to close and loose major money on my balance or ride out the trade a day or four later until it becomes profitable again. My principle is stick to making trades when the new releases are not as major than hoping to cash in on the winning side of a major news release.
  • #8
  • Aug 23, 2021 8:15am Aug 23, 2021 8:15am
Quoting benjamin89
Hey guys, i need real advice from traders that making money from the market, are you trading before news or after, if you are trading before..how much time before? What is your limit..im asking that because i have trades that triger few hours even a hour before news, and sometims they succeed and sometims they dont..im a scalper and i have few trades by week so i need to take what i can..

I can save you a lot of time and stress.
If you are trading near news times, and by that I mean the really important ones-US Non Farm Payrolls, then don't. You're essentially flipping a coin.
If you're trading the news release itself then only trade when the news/figures are totally unexpected y the market.
E.g. Market expects NFP figure of +250k and the actual figure is -100k.
Or if the Fed (if trading US markets) says something that is totally unexpected e.g. Tapering will end sooner than expected.
  • #9
  • Aug 25, 2021 4:09am Aug 25, 2021 4:09am
If you know the market will go through a strong news release, there are several decisions you can make.
- trade during movements when waiting for news. These fluctuations can sometimes be stronger than the movement during the release, because any event or info that somehow affects the release result can start an avalanche reaction of market participants.
- trade during stagnation, if the market is frozen and fluctuates in a narrow channel between two levels.
- trade during the news release. If you do not have a clear idea of the risks that may be associated with such a trade, then it is better to refrain from this idea.
- trade after the release has happened. Be aware that there may be several volatility sections during which the market reaction to the release and subsequent trades is displayed.
You can trade the entire cycle, or choose one moment. This will depend on the information you hold, your analytics and the specifics of your trading system.
If you are a scalper, then I see no problem for you to trade the entire cycle.
I trade medium-term and most often I open a position shortly before the release in order to cover the news movement, or I trade after an impulse, for a breakout or a correction.
  • #10
  • Edited 12:04pm Aug 25, 2021 4:54am | Edited 12:04pm
I trade primarily M15, so I guess that's scalping but not extreme scalping. I trade some London session and New York overlap, typically 5:00 AM - 10:00 AM New York time. This is how I deal with news.

I stay out completely on NFP, FOMC, and EUR Refi days.

I do not trade other specific currencies on their interest rate announcement days (GBP etc.), but will trade the other pairs.

If there is red news on the FF calendar, I don't trade 15 minutes before and wait until 15 minutes after the news. Depending on the situation I might extend the time before to avoid the news release.

I do not trade CAD pairs if they have red news that day.

Other than that I take my chances, for the most part news will help to complete patterns as has been mentioned here, but of course sometimes it doesn't go our way, just like at any other time when moves can happen out of nowhere.

Hope that helps, this is a crazy game we play, it's all about probabilities, nothing is certain.
  • #11
  • Aug 30, 2021 4:45pm Aug 30, 2021 4:45pm
Take a hedge position some minutes before the news release - now you are long and short in Nasdaq, for example.
if you are in good mood, and price starts to become volatil minutes before the release, you can close the leg in which direction there is a move, and seconds later you close the other leg in the counter direction, that depends on the volatility during the ninutres before the release.

Lack of volatility before the release: do nothing and wait for the release- positive news means up , but in most of the cases there is also a pull back. Lets say news are positive, price moves up, makes a break, moves down, AND NOW YOU CLOSE THE SHORT LEG, seconds later price moves in the main direction, NOW YOU CLOSE THE LONG LEG, - so its possible to drive in profits without the need to open scalping positions in high volatile markets.
  • #12
  • Last Post: Aug 31, 2021 1:57am Aug 31, 2021 1:57am
Quoting Mundo
Obviously depends on your MM, method and level of pain resistance. But trading IMHO should be best traded reactionary. Wait for news and trade accordingly. Not a guarantee since the market does what it does. I prefer looking at patterns (technical) first then news. At times news will complete a pattern so I trade based on Technicals first then wait to see if news completes pattern. If not then pattern was not there. When no pattern is present then I trade off of news only. I stay away from high volatile news. However, since you scalp I would stay...
Completely agree with this. There is no point in putting yourself at risk when there are so many more preferable times to trade. As we all know looking for the highest probable trade is the aim and you can't do that with news
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