wealth amasing strategy.....hefhem911

yeah. i have been looking forword to this particular opportunity where i ll be able to share with you guys my own trading strategy. i have learnt a lot from this forum and i can say i really appreciate all contributors...thank you for your work.
now to the biz of the day...the strategy: go to a site that have economic calendar about fundamental announcements[i use action forex] and click on the economic calendar to see the news releases for the day i.e the time each news ll be posted and the currency it deals with then go and play bball. at exactly fifteen minutes to the release of the news, you MUST be at the front of your computer system with you charts open to the currency you plan to trade.change your chart's time frame to a one minute candlestick chart and at exactly ONE MINUTE to the news,get down the high and low of the previous candle.add 10pip to the high and subtract 10 pip from the low, then place two entry order using limit order.this should have happened at exactly news time!wat did you just do?you took the high and low and spread it to create a little bit of a safety net and go long and short at thesame time with a 20pip exit target.from experience and observations,price generally explode once a fundamental announcement is made. HOW TO PROFIT: see example below:


new entry price stop loss exit target
High: 1.3249. 1.3259 1.3249 1.3269
Low: 1.3244 1.3234 1.3244 1.3214
am tired of typing...........more to come.
c'ya.

This is announcement trading. I have been keeping a diary of my trades since 1997 using a similar method to the one you propose. On average non-farm payrolls has produced the biggest moves. This announcement is coming up on Friday.

this is nothing new it is called straddling and most traders know how to do it

This is stradelling, and has been around since well before me and a lot of other traders on this forum. Also, there are plenty of straddle EA's out there as well.

There were lots of advantages of doing this, but below is a few problems I can think of, and have experienced first hand:

1. Broker slips you a few pips or more on limit entry
2. After you have entered ur orders, and before news release candle, price movement takes out one of ur orders, and the news causes it to go to the opposite direction
3. Broker increases spread to cause one of ur limits to be hit and sl being hit at the same time.

If you have solutions to these probs, I am all ears. http://www.forexfactory.com/images/icons/icon3.gif

4. Price whipsaws and takes out both your stops.

Straddling is a solid theory, but can be dangerous. The major flaw is that you are waiting for price to react instead of trading the direction that the announcement is suppose to effect the currency. You are essentially hoping that the market moves in only one direction after the announcement. This happens allot but can kill you too.

It is much more benifical to analyize the announcement data and enter a position based on your analysis.

for example "USD - widget sales" (made up announcement) if the widget sales are higher than expected this would good news for the dollar. so it woudl make sense to take a short position on the EUR/USD.

If you straddle this announcement with Limit or stop orders you may end up taking a Long position on the EUR/USD for the following reasons....
1. The short term price could be (<10min) could rally in the oppisite direction (Long) due to large Short positions being taken by banks,funds and traders (people who actually analyize the announcement data ) . this would cause your long straddle to be hit. There is no big conspiracy...
2. Liquidity providers may just decide to pull out for a few minutes and set there bid and offer at extremes ( this is regular practice, espically during high volitility announcements) . Would also trigger your straddle in the wrong direction.

As far as brokers doing shady stuff around announcement time, most of these claims are BS, made up by traders who dont really know what there are doing in the first place. They make bad trades and instead of taking responsibility for it they try to blame someone else.

KurkaFund, any chance you have the news spreadsheet ready for the other pairs, not just the EUR/USD. The original spreadsheet you posted was very useful, thanks.

Download the latest ver of the Plot News indicator. it has been modified by myself and others to automatically create a the spreadsheet. Run it on any currency pair you would like and it will give you the results you are looking for. That way you can analyize the news data any way you would like.