The method of trading that I use is shady, but as long as the method gets money into my account right? When using this trading method, you almost never lose.
First you need to get a clearinghouse that has FAST execution (less than a second) and fixed spread. However, this clearinghouse is slow in terms of updating its price (maybe a second slower). Then, you need another clearinghouse that has faster price movement, even demo will work. During the news time, just watch the clearinghouse that has faster price movement, and then just click buy or sell based on that as long as the price has not changed in the clearinghouse that you use. I use different number of lots based on the kind of news that I trade. Obviously, bigger the news, bigger the lots. I choose between 5 lots ($500,000) to 15 lots (1.5mil) depending on the expectaton of volatility of the news. I started with 20K account. My past record has been steady 1000/wk for past three months. For last two weeks, I became more aggressive (since I got more capital to play with), so I made 2000/wk. Now I have 35K. O yeah, by the way, that 1000/wk figure includes all the loss I got from technical trading. (although I am getting better at it and I know I have to get better at it to survive in Forex. But I am still not profitable using technical trading, recently i've been breaking even or losing a bit) Therefore, trading news my system should result even more money than I stated above. Also, the amount of pips that I get per news varies but it goes from as small as 1 pip to as much as 30 pips. I don't wait too long and I never let it go to minus once I see plus. Of course, you can try to stay with the trade longer, but I do not suggest you letting it go minus. Also, it's a lot of money even with 1 pip gain, which is 100 dollars with 10 lots.
You can see why it's ALMOST impossible to lose. However, there is downside to this. You can easily miss the trades because sometimes (and very often) will get "price changed". That's not bad since, you are not losing money, you are just missing opportunity. (don't yell at me.. i know missing opportunity is BAD too) The worse thing that can happen to you is that the price quickly reverses on you or the volatility is not what you expected. This is why you need to get out whenever you see MINUS on your trade. My trade lasts less than 1 min. It happens rarely that the market will go against you after you get in. But when it does, get out immediately. You can not hope that it will go your way. Sometimes it will and sometimes it will not, but when it does not, it will go against you in a big way. Another downside is that, this trading method can not last forever since the clearinghouse will notice it and they might change the system such as using variable spread or stopping the server during the news. However, the clearinghouse that I use has not changed whatsoever, so I am good. Final downside is that, well sometimes my server reacts faster to the news, then obviously you also missed the opportunity.
Some other advance tactics I use is that, even when there is no news, I still try to compare and see if there is price difference. Therefore, if I am trying to buy, I see whether price on my server is lower than other clearinghouse's server. Then, I would get in. This is good if your trade is like short term trade between 10 mins to 1 hour. Obviously, if you are doing long term, you shouldn't care about 2 to 4 pips you might gain from this method.
First you need to get a clearinghouse that has FAST execution (less than a second) and fixed spread. However, this clearinghouse is slow in terms of updating its price (maybe a second slower). Then, you need another clearinghouse that has faster price movement, even demo will work. During the news time, just watch the clearinghouse that has faster price movement, and then just click buy or sell based on that as long as the price has not changed in the clearinghouse that you use. I use different number of lots based on the kind of news that I trade. Obviously, bigger the news, bigger the lots. I choose between 5 lots ($500,000) to 15 lots (1.5mil) depending on the expectaton of volatility of the news. I started with 20K account. My past record has been steady 1000/wk for past three months. For last two weeks, I became more aggressive (since I got more capital to play with), so I made 2000/wk. Now I have 35K. O yeah, by the way, that 1000/wk figure includes all the loss I got from technical trading. (although I am getting better at it and I know I have to get better at it to survive in Forex. But I am still not profitable using technical trading, recently i've been breaking even or losing a bit) Therefore, trading news my system should result even more money than I stated above. Also, the amount of pips that I get per news varies but it goes from as small as 1 pip to as much as 30 pips. I don't wait too long and I never let it go to minus once I see plus. Of course, you can try to stay with the trade longer, but I do not suggest you letting it go minus. Also, it's a lot of money even with 1 pip gain, which is 100 dollars with 10 lots.
You can see why it's ALMOST impossible to lose. However, there is downside to this. You can easily miss the trades because sometimes (and very often) will get "price changed". That's not bad since, you are not losing money, you are just missing opportunity. (don't yell at me.. i know missing opportunity is BAD too) The worse thing that can happen to you is that the price quickly reverses on you or the volatility is not what you expected. This is why you need to get out whenever you see MINUS on your trade. My trade lasts less than 1 min. It happens rarely that the market will go against you after you get in. But when it does, get out immediately. You can not hope that it will go your way. Sometimes it will and sometimes it will not, but when it does not, it will go against you in a big way. Another downside is that, this trading method can not last forever since the clearinghouse will notice it and they might change the system such as using variable spread or stopping the server during the news. However, the clearinghouse that I use has not changed whatsoever, so I am good. Final downside is that, well sometimes my server reacts faster to the news, then obviously you also missed the opportunity.
Some other advance tactics I use is that, even when there is no news, I still try to compare and see if there is price difference. Therefore, if I am trying to buy, I see whether price on my server is lower than other clearinghouse's server. Then, I would get in. This is good if your trade is like short term trade between 10 mins to 1 hour. Obviously, if you are doing long term, you shouldn't care about 2 to 4 pips you might gain from this method.
