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How do you trade news?

  • #501
  • Aug 24, 2006 8:31am Aug 24, 2006 8:31am
we are also waiting for the news!!I also want to know your stg.
  • #502
  • Feb 20, 2007 1:33am Feb 20, 2007 1:33am
Quoting accrete
DITTO your remarks SMJ, well said. I go for the "Box Play/trade" myself and find it quite useful and consistently profitable on news days/breakouts on 5min charts looking at the close of the 15m candle after news for additional confirmation/trend.

Thom
Hi Thom
I am curious about 'box play/trade - what is it and how do you set it up?
I am a new trader searching for a good method for trading news.
Thanks so much
Kemton
  • #503
  • Aug 8, 2007 1:11pm Aug 8, 2007 1:11pm
How to define good report and report when price jump around the open price?
  • #504
  • Aug 8, 2007 1:34pm Aug 8, 2007 1:34pm
Way too much adrenaline for my tastes... I find it best to start looking at markets a few hours before a major news event - especially oversold or overbought markets, even better if the recent trend is counter to major trends - and wait for a reversion signal. That will happen as traders realize they are caught in risky positions and want to lighten up before the possibility of contrary news. Just make sure you get out at least few minutes before the release (longer times for less liquid pairs) as liquidity dries up.

Then you can just sit back and enjoy the fireworks.
  • #505
  • Aug 8, 2007 1:48pm Aug 8, 2007 1:48pm
thank you. :-)
  • #506
  • Aug 20, 2007 7:09pm Aug 20, 2007 7:09pm
Box trading the news works very well for me . I studied it for several months until I began using it about a month ago. Definitely better than using rsi, macd, and all those lagging indicators I was taught to use since I began trading.

I might start using the box technique on gbp/jpy. That pair yields so much money!!!

Does anyone use the box technique to trade the news for the gbp/jpy? I am sure it is probably the same as trading any pair...only this time, you are trading one that makes extremely massive moves in a short time!
  • #507
  • Edited 3:11am Sep 7, 2007 2:55am | Edited 3:11am
First post in this forum

I have a question. If you are trading the news (I'm looking at the box breadout after the news) and you are short USDCAD due to the IVEY PMI like today, do you exit before the NEXT major impact figure release on the FF calendar that may affect that cross ... whether it be a US figure release or a CAD figure? If so how long before the release should you exit? ... yes it's a newbie question I know ...

Thanks

Adam
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  • #508
  • Sep 7, 2007 10:14am Sep 7, 2007 10:14am
i trade the news by placing before any high or medium impact news release, two orders: one short, one long, each one 15 pips away from the price at that moment.

however, today i placed a long order on eurusd @ 1.3710 but it was triggered at 1.3737. why ? i think because eurusd flew from 1.3700 to 1.3730 in a second or anyway something like that.

could have had 27 pips more, but oh well, still satisfied for today :
Twitter: @forexpokerpro
  • #509
  • Sep 7, 2007 4:12pm Sep 7, 2007 4:12pm
Quoting FXKid
you cannot trade considering the news event without having the experience no one can deliver this knowledge it is pure experience it never stands alone as a factor and should weight the trend factor against the breaking news factor if you know to that your are a real day trader
.
i beg to differ a bit. you can trade the news and fairly easily. now, if there are news which have a high impact on the market, the currency will move at least 30-40 pips for sure in one way or the other. entry orders a few minutes before the news is the way to go. you do not need to know what the news will be exactly. you now the market is going to move. so place your entry orders. on every news trade i had a profit of at least 30 pips with this method. in a couple of minutes.
Twitter: @forexpokerpro
  • #510
  • Sep 8, 2007 4:19pm Sep 8, 2007 4:19pm
Quoting BBPI_fxtrader
i trade the news by placing before any high or medium impact news release, two orders: one short, one long, each one 15 pips away from the price at that moment.

however, today i placed a long order on eurusd @ 1.3710 but it was triggered at 1.3737. why ? i think because eurusd flew from 1.3700 to 1.3730 in a second or anyway something like that.

could have had 27 pips more, but oh well, still satisfied for today :

What trading platform/software are you using for these sorts of trades? And do you have any software to help you place the orders quickly just before the news event?

I've found by trying to do this by hand (on IGindex) that I either have my position opened too early, or miss the trade altogether!

Any pointers on this would be great.

Thanks.
  • #511
  • Sep 10, 2007 3:27pm Sep 10, 2007 3:27pm
Can Someone please explain this terms in detail for me Please:

1. Hedging
2. Stradling
3. Channel (in chart terms)
4. Breakout...

I would appreciate it if someone could analyse this terms for me as I a new to news trading and want to equip myself with enough knowledge so as to trade carefully.

Thanks again.

FF is the best!
  • #512
  • Sep 11, 2007 2:23pm Sep 11, 2007 2:23pm
Quoting regalyke
Can Someone please explain this terms in detail for me Please:

1. Hedging
2. Stradling
3. Channel (in chart terms)
4. Breakout...

I would appreciate it if someone could analyse this terms for me as I a new to news trading and want to equip myself with enough knowledge so as to trade carefully.

Thanks again.

FF is the best!
1. Hedging= Taking a position againt your current position, for example you're long on euro with 1 lot, if you short with 1 lot, you've hedged your position. There are a lot of traders saying that they use hedging systems and they're prifitable but I haven't tried any.
2. Stradling= It's used usually to trade news but it's very risky and it's difficult to find a broker who lets you do it. Simply 1 min or 30 sec before news releases, you put 2 entries 5-10 or 15 pips away from current market price (buystop and sell stop) in a way that current price is in between.
3. Channel (in chart terms)= Simply take your chart and draw 2 parallel lines 1 passing thru bottoms that market is forming and the second parallel to it and passes thru tops. Like this // for uptrend and like this \\ for downtrend. Of course there are many forms of channels but this the basic one.
4. Breakout= When price gets out from the channel you drawn, it's a breakout. Or simply take a chart and look for the last top and draw a horizontal line on it and a last bottom and draw a horizontal line on it and wait. When market passes thru your lines, you have yourself a breakout.
  • #513
  • Sep 11, 2007 6:13pm Sep 11, 2007 6:13pm
So how would the news traders trade this.


The Ever Sceptical VIPER
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  • #514
  • Sep 19, 2007 6:48am Sep 19, 2007 6:48am
Quoting regalyke
Can Someone please explain this terms in detail for me Please:

1. Hedging
2. Stradling
3. Channel (in chart terms)
4. Breakout...

I would appreciate it if someone could analyse this terms for me as I a new to news trading and want to equip myself with enough knowledge so as to trade carefully.

Thanks again.

FF is the best!
Straddles

Straddles are really easy to set up and require very little thinking, but it is probably the riskiest method of trading the news. To set up a straddle, you basically put a limit order to go long a few pips above the market before a news report, and simultaneously put in a limit order to go short a few pips below the market. If the report creates enough volatility your orders will be automatically triggered, and your stops and profit levels will also be automatically executed if hit. Simple as that.
Again, it sounds easy, but be very cautious with this method in that both long and short orders can be triggered, and if profit targets and stops are set incorrectly, you can be stopped out for maximum loss on both orders. Also, you run the inherent risks of slippage.
  • #515
  • Sep 19, 2007 8:30am Sep 19, 2007 8:30am
Does anyone here straddle consistently successfully? I have tried it on demo a while ago and it seemed to go ok, but I haven't ever tried it live. Won't brokers slip your orders on a live account if there is a big spike ?
  • #516
  • Sep 19, 2007 8:56am Sep 19, 2007 8:56am
Yes, brokers slip you or requote you, the price also moves around quite a bit right before the news so you will mostly likely get pulled into the move prematurely.

Straddling worked very well a few years ago but like usual, brokers and MM found a way to stop it.
  • #517
  • Sep 19, 2007 8:59am Sep 19, 2007 8:59am
Quoting FrankTheTank
Yes, brokers slip you or requote you, the price also moves around quite a bit right before the news so you will mostly likely get pulled into the move prematurely.

Straddling worked very well a few years ago but like usual, brokers and MM found a way to stop it.
I thought that might be the case. I have only traded the nfp and interest rate decisions live when there has a big deviation in the numbers. I didn't trade the initial spike and i still often get some slippage.
  • #518
  • Sep 26, 2007 9:46am Sep 26, 2007 9:46am
news release ---> vertical line
Breakout range --> green dotted lines
Had to stop and reverse but made +ve pips in the end...
any comments appreciated
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  • #519
  • Sep 26, 2007 9:51am Sep 26, 2007 9:51am
Quoting regalyke
Can Someone please explain this terms in detail for me Please:

1. Hedging
2. Stradling
3. Channel (in chart terms)
4. Breakout...
Investopedia.com is a great resource/ dictionary for any new terms you may come across....
  • #520
  • Edited 6:27am Sep 27, 2007 5:45am | Edited 6:27am
news release ---> vertical line
Breakout range --> green dotted lines
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