This ''strategy'' for trading news events | Forex Factory

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This ''strategy'' for trading news events

  • #1
  • First Post: Edited Apr 7, 2024 2:38am Apr 5, 2024 8:25am | Edited Apr 7, 2024 2:38am
.
  • #2
  • Apr 5, 2024 8:51am Apr 5, 2024 8:51am
Few things to point out:

Some people will say that liquidity will take both side but it depends on the event. You'll need to backtest it using cTrader.


Don't make too much money or else the broker will notice. Try withdrawing regulary.
  • #3
  • Apr 5, 2024 9:28am Apr 5, 2024 9:28am
I'll be uploading a video to demonstrate soon Inshallah after work.
  • #4
  • Apr 5, 2024 4:28pm Apr 5, 2024 4:28pm
And what happens to the account with the negative balance? Margin call?
  • #5
  • Apr 5, 2024 5:19pm Apr 5, 2024 5:19pm
Quoting vinesh1
And what happens to the account with the negative balance? Margin call?
It gets reset.
  • #6
  • Apr 5, 2024 5:19pm Apr 5, 2024 5:19pm
Was thinking about this today. I will actually try it. Seems feasible. But it can only work on NFP and CPI Gold. Only thing I will advise is to do it on two different brokers. I would say take profit within 3 minutes of trade. Gold can reverse on short notice like the way it did today.
  • #7
  • Apr 5, 2024 5:33pm Apr 5, 2024 5:33pm
Quoting ObadaAdel
I'll be uploading a video to demonstrate soon Inshallah after work.
We r waiting for your video bro
  • #8
  • Apr 5, 2024 6:06pm Apr 5, 2024 6:06pm
Quoting klopp433
Was thinking about this today. I will actually try it. Seems feasible. But it can only work on NFP and CPI Gold. Only thing I will advise is to do it on two different brokers. I would say take profit within 3 minutes of trade. Gold can reverse on short notice like the way it did today.
Indeed. I don't hold for longer than 5 seconds, any more and it can reverse fast, taking away both your accounts.
  • #9
  • Apr 5, 2024 7:04pm Apr 5, 2024 7:04pm
Quoting ObadaAdel
{quote} It gets reset.
What do you mean reset? If i dont close the negative trade I will get a margin call and they will close my account
  • #10
  • Apr 5, 2024 7:32pm Apr 5, 2024 7:32pm
Quoting ObadaAdel
{quote} Indeed. I don't hold for longer than 5 seconds, any more and it can reverse fast, taking away both your accounts.
5 secondes or 5minuts
  • #11
  • Apr 6, 2024 3:26am Apr 6, 2024 3:26am
Quoting ObadaAdel
Hi. Look, I don't know if this will get deleted or not, because its wrong, but hear me out. You open 2 accounts, you deposit like 100$ on each which will enable you to open at least 0.5 (1:1000 leverage). You wait for a high impact news event then open a buy position on an account, and sell on the other. After the news event appears, one account will go into profit while the other will go into negative, and that's where negative balance protection comes in. So basically, you absorb the loss every time with NBP. Did anyone have any experience with...
Very common with South African "traders".
Guess they said it was invented by one Forex broker killer a.k.a DJ coach from south africa. Claimed to have made millions of pounds from this.
Grit; Knowledge; Right Mindset; All you need to overcome. KIS!
  • #12
  • Apr 6, 2024 3:38am Apr 6, 2024 3:38am
Quoting pipibrasci
{quote} Very common with South African "traders". Guess they said it was invented by one Forex broker killer a.k.a DJ coach from south africa. Claimed to have made millions of pounds from this.
Really? Sounds awesome.

Do brokers really suffer the losses from NBP or does it depend on the model of said broker?
  • #13
  • Apr 6, 2024 3:39am Apr 6, 2024 3:39am
Quoting vinesh1
{quote} What do you mean reset? If i dont close the negative trade I will get a margin call and they will close my account
I'll provide a video soon, on the next NZD event.
  • #14
  • Apr 6, 2024 3:40am Apr 6, 2024 3:40am
Quoting polo31
{quote} 5 secondes or 5minuts
5 seconds.

If the event is strong enough, it can give you at least 30 to 50 pips. It can go on longer but why take the risk. It can easily reverse.
  • #15
  • Apr 6, 2024 3:43am Apr 6, 2024 3:43am
Quoting ObadaAdel
{quote} Really? Sounds awesome. Do brokers really suffer the losses from NBP or does it depend on the model of said broker?
You can look him up (google, youtube) and maybe get more details on the 'strategy'
Grit; Knowledge; Right Mindset; All you need to overcome. KIS!
  • #16
  • Edited 1:05pm Apr 6, 2024 11:50am | Edited 1:05pm
Does it work on all kinds of news? And how can i backtest this strategy?
  • #17
  • Apr 6, 2024 1:39pm Apr 6, 2024 1:39pm
Quoting Blavity01
Does it work on all kinds of news? And how can i backtest this strategy?
Not on all news but only high impact ones. Even high impact ones can turn out to be bad. And you need to choose a volatile yet cheap pair like XAUUSD.

cTrader has a backtest option. I believe it was added a year ago.
  • #18
  • Apr 6, 2024 5:11pm Apr 6, 2024 5:11pm
Quoting ObadaAdel
{quote} Not on all news but only high impact ones. Even high impact ones can turn out to be bad. And you need to choose a volatile yet cheap pair like XAUUSD. cTrader has a backtest option. I believe it was added a year ago.
"And you need to choose a volatile yet cheap pair like XAUUSD"??

Well, doing enough research on brokers is key to attaining some level of success on news event trading. Look out for brokers with fixed spreads and you confirm during events they do actually have fixed spread accounts and not just because they said so.

I had a situation where buy and sell stops were even over 30 pips apart and when the news came in both buy/sell orders were triggered. I sat and watched the spreads widen filling up the orders before plunging south! That was on XAUUSD, IC markets, 2019. Everyday for the thief but one day for the owner. Well, that was on one account/broker and same pair.

On separate accounts/brokers it could be worth it but its no guarantee that one of the accounts would yield 100% i.e. breakeven. So you must aim for >200% to stay profitable.

That guy (FBK) bets over 1k on both buy/sell side. Mostly on NFP.
Grit; Knowledge; Right Mindset; All you need to overcome. KIS!
  • #19
  • Apr 6, 2024 5:44pm Apr 6, 2024 5:44pm
Quoting ObadaAdel
{quote} Not on all news but only high impact ones. Even high impact ones can turn out to be bad. And you need to choose a volatile yet cheap pair like XAUUSD. cTrader has a backtest option. I believe it was added a year ago.
So what I understood is that when you have 100$ on both accounts and Xauusd moves over 30 pips in a single tick in the news, you lose 150$ on one account and you win 150$ on the other account with 0.5 lot size, but when you stop out, you lose just 100$ but you already won 150$ on the other account. Am I right?
  • #20
  • Apr 6, 2024 6:18pm Apr 6, 2024 6:18pm
Quoting Blavity01
{quote} So what I understood is that when you have 100$ on both accounts and Xauusd moves over 30 pips in a single tick in the news, you lose 150$ on one account and you win 150$ on the other account with 0.5 lot size, but when you stop out, you lose just 100$ but you already won 150$ on the other account. Am I right?
0.50 on XAUUSD trading CPI (for example) will not yield 150$, but more than 500$. That's 350$ profit.

I'll show a video of it on the next NZD event.
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