FADE

Hey guys,


It has been a long time since i posted, but now i am back. Havent done any FX in ages, so i am coming back.

My question is, are there any retrace/Fade traders here? I am only going to specialize in fades, which can yield about 20-100 pips per month. I have to create a system and triggers to signal which fades and which is too volitile to fade.

- J

Sounds interesting hunter. Would be great to hear your ideas.

I would say pre-requisites for a fade are:

1. Economic figure close to expectations.
1. Exhaustion of initial spike and price action to support this, e.g. pinbar.
2. Initial spike against trend direction, so you can fade back to current trend.

Simon

well done.

Nice Simon!

But i was thinking more on the strength of the news report. Not only that, if hte actual is in a close range to teh concensus, then there will be a fade, but i have a mini system where if it spikes up 30 pips, then if it drops down 10 pips, get in, and ride the fade for about 5-10 pips. There should be at least 5-10 economic reports that are able to trade via fade. Today was a good example, got in and made 10 pips in about 45 min, of course one can not leverage it like crazy, this is playing it safe, lose 10 pips or gain 10 pips, thats it. Still got to do more reserach.

Goal, 50-100 pips per month.

- J

Good luck Hunter101. I think there is still plenty of research to be done on news trading.

I was wondering if certain spike patterns can be identified in the same way that people see chart patterns. We all know about fibonacci retracements, but what about the shape of the pattern itself? Also, perhaps volume data from the futures fx market could be used to help news trading. Just minor ideas at present, but I would like to investigate more.