News trading help

As a rule of thumb, if the price didn't move more than 20 pips in the first few seconds after the release, the report is not worth trading. The next report worth watching, is the US GDP next wednesday... and so is the CAD GDP, ADP Non-farm, and USD Interest rate statement, could be a big day...

I am Adil also new in trading i have read all your messages today and learned a lot and the person who is replying you i also thank him for such a brief answering and improving the knowledge of their new fellows thaxx forex factory for maintaining a nice place where we new ones can interact and communicate the experanced ones take care everyone.
Adil Zarar (Pakistan)

7:00am GBPhttp://www.forexfactory.com/images/m...act_medium.gifNationwide House Prices m/m
http://www.forexfactory.com/images/m...etail_star.gif 1.1%
0.2%0.7%


Sorry, i forgot to mention this indicator. Recently, as you might already know, housing is very in focus. Due to sub-prime problems. Also housing is generally a good indicator of the health of the economy, or so they say. Anyway, m/m prices came out much higher than expected 1.1% This is 0.9% better than expected by the economists (1.1 (actual) - 0.2 (expected = 0.9) +0.4% deviation last month, caused about a 25 pip initial move. This time around, price eventually made it to about a 40 pip target. 2.0700 - 2.0740. I personally made about 27 pips due fractional exits. Chart attached...

It didn't move because the actual released number came out as forecast (as expected). Whatever is expected is usually already priced into the market, so if it comes out as expected, often there is no change.

But if the number is different from expected, that's when you usually get bigger moves and wild action.

Then, sometimes they revise the previous month's number up or down. If the revision is in the same direction as the release's difference from what is expected, then you can see the really big moves if it is a "red" news release.

Make sure you try this on demo for a few months. And remember that if you make money, it was probably luck, it doesn't mean you're good at it!

Most traders try to stay out of the market before news, this is good advice.

The problem with using demo accounts during news is that you always get filled at the price you see which bears little relation to what happens when you trade 'live'. Brokers, particularly the more unscrupulous (most of them that is), usually want to give you re-quotes during news periods and often have large spreads to cover their asses.
Not everything is what it first appears in forex.

Indeed, that's why you need an ECN broker.

Best of luck,

Vlad

Very good point, and a word to the wise.

Although I have been on the phone with a friend, he had a live account, I had a demo with the same broker, we both used a straddle script and placed the same orders. The spread hit 30 or 40 for a millisecond tick and we were both filled and then stopped out immediately.

That was on Interbank FX, so it would appear that what they do to their live accounts, they do to their demos, at least on that occasion.

News trading is tricky, Burhan. I advise you to learn all aspects and influences surrounding it, as there are very differing views and strategies.

A funny case in point, is an article in the news section today:

http://www.forexfactory.com/news.php?do=news&id=54971

There are a lot of comments and positive and negative votes on this article, and it shows how different news traders can be in their thinking.

I advocate a long-term perspective, with a healthy mix of fundamentals and technicals.

I got a PM asking for this EA. I don't know if it will even work or not, I wrote it in 2007 and never used it. Try it out on a demo account first. To use, enter the news time, in your local time, and how many seconds before that time you want the buy / stop orders placed. There's also a parabolic trailing stop.

Dear friends,

can any one help code a STOPLOSS to this script? Please help! The script is as below;

---------------------------------------------------------------------------------------------------------------------------------------------



extern double TakeProfit = 5.0;
extern double TakeProfit2 = 5.0;
extern double InitialStop = 100;
extern double InitialStop2 = 100;
extern double TrailingStop = 20.0;
extern double TrailingStop2 = 20.0;
extern double Lots = 1.0;

color Filter10 = 68;
color Filter12 = 9;
color Filter6 = 80;
color Filter4 = 35;
color Filter2 = 47;
color Filter9 = 46;
string Name_EA = "sca";
int Slippage = 30;
bool UseSound = FALSE;
string EAsound = "alert.wav";

void deinit() {
Comment("");
}

int start() {
if (Bars < 100) {
Print("");
return (0);
}
if (TakeProfit < 1.0) {
Print("");
return (0);
}
if (TakeProfit2 < 1.0) {
Print("");
return (0);
}
double l_iclose_0 = iClose(NULL, PERIOD_M5, 0);
double l_ima_8 = iMA(NULL, PERIOD_M5, 7, 0, MODE_SMA, PRICE_OPEN, 0);
double l_iclose_16 = iClose(NULL, PERIOD_M5, 0);
double l_ima_24 = iMA(NULL, PERIOD_M5, 6, 0, MODE_SMA, PRICE_OPEN, 0);
if (AccountFreeMargin() < 1000.0 * Lots) {
Print(" Free Margin = ", AccountFreeMargin());
return (0);
}
if (!ExistPositions()) {
if (l_iclose_0 < l_ima_8) {
OpenBuy();
return (0);
}
if (l_iclose_16 > l_ima_24) {
OpenSell();
return (0);
}
}
TrailingPositionsBuy(TrailingStop);
TrailingPositionsSell(TrailingStop2);
return (0);
}

bool ExistPositions() {
for (int l_pos_0 = 0; l_pos_0 < OrdersTotal(); l_pos_0++) {
if (OrderSelect(l_pos_0, SELECT_BY_POS, MODE_TRADES))
if (OrderSymbol() == Symbol()) return (TRUE);
}
return (FALSE);
}

void TrailingPositionsBuy(int ai_0) {
for (int l_pos_4 = 0; l_pos_4 < OrdersTotal(); l_pos_4++) {
if (OrderSelect(l_pos_4, SELECT_BY_POS, MODE_TRADES)) {
if (OrderSymbol() == Symbol()) {
if (OrderType() == OP_BUY) {
if (Bid - OrderOpenPrice() > ai_0 * Point)
if (OrderStopLoss() < Bid - ai_0 * Point) ModifyStopLoss(Bid - ai_0 * Point);
}
}
}
}
}

void TrailingPositionsSell(int ai_0) {
for (int l_pos_4 = 0; l_pos_4 < OrdersTotal(); l_pos_4++) {
if (OrderSelect(l_pos_4, SELECT_BY_POS, MODE_TRADES)) {
if (OrderSymbol() == Symbol()) {
if (OrderType() == OP_SELL) {
if (OrderOpenPrice() - Ask > ai_0 * Point)
if (OrderStopLoss() > Ask + ai_0 * Point || OrderStopLoss() == 0.0) ModifyStopLoss(Ask + ai_0 * Point);
}
}
}
}
}

void ModifyStopLoss(double a_price_0) {
int l_bool_8 = OrderModify(OrderTicket(), OrderOpenPrice(), a_price_0, OrderTakeProfit(), 0, CLR_NONE);
if (l_bool_8 && UseSound) PlaySound(EAsound);
}

void OpenBuy() {
double l_lots_0 = GetSizeLot();
double l_price_8 = 0;
double l_price_16 = GetTakeProfitBuy();
string l_comment_24 = GetCommentForOrder();
OrderSend(Symbol(), OP_BUY, l_lots_0, Ask, Slippage, l_price_8, l_price_16, l_comment_24, 0, 0, Filter10);
if (UseSound) PlaySound(EAsound);
}

void OpenSell() {
double l_lots_0 = GetSizeLot();
double l_price_8 = 0;
double l_price_16 = GetTakeProfitSell();
string l_comment_24 = GetCommentForOrder();
OrderSend(Symbol(), OP_SELL, l_lots_0, Bid, Slippage, l_price_8, l_price_16, l_comment_24, 0, 0, Filter6);
if (UseSound) PlaySound(EAsound);
}

string GetCommentForOrder() {
return (Name_EA);
}

double GetSizeLot() {
return (Lots);
}

double GetTakeProfitBuy() {
return (Ask + TakeProfit * Point);
}

double GetTakeProfitSell() {
return (Bid - TakeProfit2 * Point);
}