Not to trade to NEWS EA! | Forex Factory

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Not to trade to NEWS EA!

  • #1
  • First Post: Feb 1, 2007 8:26am Feb 1, 2007 8:26am
My EA is good in backtesting and forward demo.
When I went to live I noticed that a lot of orders were not fulfilled during
newstime. When I wake up there is a loss of $2000 due to that and
I got a lot of error in the logs for unfulfilled order.
This does not happen in demo!

The spread widened and that is the culprit.

Can anyone possibly point me to EA that will not trade the news?

It is so funny that while the EA is running I am also making market orders.
It's get so wacky!

I will appreciate any help you can give me.
Thank you.
  • #2
  • Feb 1, 2007 8:31am Feb 1, 2007 8:31am
Anyway, I tried getting the difference of the BID and ASK price then
if it is greater than the minimum spread then dont trade. The problem
is that, the difference change like a roller coaster ride! It's like now
it works and now it doesnt.
  • #3
  • Feb 1, 2007 9:27am Feb 1, 2007 9:27am
  •  tesla
  • | Joined Oct 2006 | Status: Friendly Neighborhood Programmer | 533 Posts
You need to stop trading that EA in a live account until you understand the dynamics of why it isn't working. I'll try to get you started.

In a fast moving market, your broker isn't going to want to take the other side of a trade that will leave them with a bad position. They're going to make liberal use of requote, either quoting you a price that they're comfortable with or using it to stall your entry into the market (or both). They may widen the spread too, but requote is probably their best tool.

Remember the slippage param in OrderSend(...)? That's where it comes into play. If they requote you more than the amount you specified as okay, the order gets rejected.

My opinion is that retail brokers have all the advantages in a fast moving market and there's nothing you can really do about it. If your trading style is such that you pull the trigger when the market is moving, I suggest you examine alternatives to a MetaTrader broker.
  • #4
  • Feb 1, 2007 9:47am Feb 1, 2007 9:47am
Thanks appreciate it. Slippage was set to 6 but there are something I did not consider. Funny thing is I freaked out and I am compiling the EA while it is running. It is P/L down to $1500 now. I really want to know why it is not working because this EA has been tested in Demo for 6 months.

I really appreciate your response! I'll adjust it more while it is running because I cannot see the issue in demo.

I mean P/L of $2000 above.

Quoting tesla
You need to stop trading that EA in a live account until you understand the dynamics of why it isn't working. I'll try to get you started.

In a fast moving market, your broker isn't going to want to take the other side of a trade that will leave them with a bad position. They're going to make liberal use of requote, either quoting you a price that they're comfortable with or using it to stall your entry into the market (or both). They may widen the spread too, but requote is probably their best tool.

Remember the slippage param in OrderSend(...)? That's where it comes into play. If they requote you more than the amount you specified as okay, the order gets rejected.

My opinion is that retail brokers have all the advantages in a fast moving market and there's nothing you can really do about it. If your trading style is such that you pull the trigger when the market is moving, I suggest you examine alternatives to a MetaTrader broker.
  • #5
  • Feb 1, 2007 9:56am Feb 1, 2007 9:56am
Quoting meltri
Thanks appreciate it. Slippage was set to 6 but there are something I did not consider. Funny thing is I freaked out and I am compiling the EA while it is running. It is P/L down to $1500 now. I really want to know why it is not working because this EA has been tested in Demo for 6 months.

I really appreciate your response! I'll adjust it more while it is running because I cannot see the issue in demo.

I mean P/L of $2000 above.
Is this EA designed to trade news events? or is it that it just happened to place a trade during a news event?

Also, is it a scalper type EA?
  • #6
  • Feb 1, 2007 10:07am Feb 1, 2007 10:07am
No it is not designed to trade news. It is designed to trade anytime by checking SMA 120, ATR, Correlation. Yeah, It may fall to scalper category
because it keeps on balancing the correlation between the two currency.

I wonder why it seems fine in demo. It only gets whacky when in news time.
Well, It eats the profit I got from tame market.

Quoting smjones
Is this EA designed to trade news events? or is it that it just happened to place a trade during a news event?

Also, is it a scalper type EA?
  • #7
  • Feb 1, 2007 10:10am Feb 1, 2007 10:10am
Seems like the spread is back to normal now and it is balancing now.
Whew, what a disaster. Very nice experience indeed!
  • #8
  • Feb 1, 2007 10:18am Feb 1, 2007 10:18am
The reason it works well in demo and not live, is because in demo there is no need to requote. The Broker is not at any risk. So, you get the best price at the time. This is going to be a serious problem with a scalping EA. Especially one that is designed to take the difference between a couple of currencies in something like a synthetic hedge. Which is what I think you are talking about. I am not sure how you can be certain this type of EA will work live...
  • #9
  • Feb 1, 2007 10:23am Feb 1, 2007 10:23am
there is a gentlemen from a yahoo metatrader group who is currently building an EA that will avoid news time, using the FF calendar. we made a special file for him to use. when the EA is done i will make sure it gets posted here.
Relax and be happy.
  • #10
  • Feb 1, 2007 10:24am Feb 1, 2007 10:24am
Quoting meltri
I really want to know why it is not working because this EA has been tested in Demo for 6 month.
It has been mentioned over and over and this is why many of us say a demo should only be used to learn the workings of the platform. Demos don't and will never factor in actual mkt conditions. The reason for this is the demo is always assuming that there is 100,000,000 lots available at ever price at all times and this is just not the case.

The mkt doesn't make big swings around the news because there are more people trading in fact its the exact opposite most major players pull there orders about 1min before the news and don't start pilling back on until about 5min after the news. The market spike is due to thin volume. This is why it is point less to back test and fwd test on demo accounts.

Open up a micro mini account and let your system go this is the only true way to find out if you have anything. Unless you find some way to spend them demo $....
  • #11
  • Feb 1, 2007 10:26am Feb 1, 2007 10:26am
This will work live as soon as I fixed the issue of not fullfulling the order
or requote. I'll take a look at that in detail. I can also find a way not to
trade it during news time. I saw an EA before that checks the news and
stop the EA for trading, if I can find that then it will help a lot.

Thanks guys for your response. I'll go back to the drawing board and add
more scenarios like this.

Quoting smjones
The reason it works well in demo and not live, is because in demo there is no need to requote. The Broker is not at any risk. So, you get the best price at the time. This is going to be a serious problem with a scalping EA. Especially one that is designed to take the difference between a couple of currencies in something like a synthetic hedge. Which is what I think you are talking about. I am not sure how you can be certain this type of EA will work live...
  • #12
  • Feb 1, 2007 10:30am Feb 1, 2007 10:30am
Thanks for the thoughts.
I'll call my broker now to open me a mini account then.


Quoting turbokaos
It has been mentioned over and over and this is why many of us say a demo should only be used to learn the workings of the platform. Demos don't and will never factor in actual mkt conditions. The reason for this is the demo is always assuming that there is 100,000,000 lots available at ever price at all times and this is just not the case.

The mkt doesn't make big swings around the news because there are more people trading in fact its the exact opposite most major players pull there orders about 1min before the news and don't start pilling back on until about 5min after the news. The market spike is due to thin volume. This is why it is point less to back test and fwd test on demo accounts.

Open up a micro mini account and let your system go this is the only true way to find out if you have anything. Unless you find some way to spend them demo $....
  • #13
  • Feb 1, 2007 10:44am Feb 1, 2007 10:44am
Thanks Merlin! Let me know when you get new info about this EA.
I dont visit the forum that often. Busy with work and creating EAs.

I just called my office and take a dayoff for sick leave. Hehehehe

Kinda happy now because the P/L is now $1300. Seems like it is going
back to normal. I hope there are no news coming.

Quoting merlin
there is a gentlemen from a yahoo metatrader group who is currently building an EA that will avoid news time, using the FF calendar. we made a special file for him to use. when the EA is done i will make sure it gets posted here.
  • #14
  • Feb 1, 2007 11:15am Feb 1, 2007 11:15am
Quoting meltri
My EA is good in backtesting and forward demo.
When I went to live I noticed that a lot of orders were not fulfilled during
newstime. When I wake up there is a loss of $2000 due to that and
I got a lot of error in the logs for unfulfilled order.
This does not happen in demo!

The spread widened and that is the culprit.

Can anyone possibly point me to EA that will not trade the news?

It is so funny that while the EA is running I am also making market orders.
It's get so wacky!

I will appreciate any help you can give me.
Thank you.
My EA defines a price range for trading. It avoides prices outside the strip to make sure you won't get caught by news volatility. You might like to take a look at it.

Click here and see it for yourself.

Good Luck,
Al
  • #15
  • Feb 1, 2007 11:22am Feb 1, 2007 11:22am
Thanks aparsai. I'll definitely take a look at it. Started reading the first page now, thanks buddy.

Quoting aparsai
My EA defines a price range for trading. It avoides prices outside the strip to make sure you won't get caught by news volatility. You might like to take a look at it.

Click here and see it for yourself.

Good Luck,
Al
  • #16
  • Feb 2, 2007 6:43am Feb 2, 2007 6:43am
Quoting meltri
Thanks aparsai. I'll definitely take a look at it. Started reading the first page now, thanks buddy.
I wish you good luck.
  • #17
  • Last Post: Jun 3, 2007 2:27am Jun 3, 2007 2:27am
meltri, not sure if you are still looking. But check out this thread. The news indicator can be used inside your EA to check for 'time to...' and 'time since...' and that way it is easy to stay away from news affecting your currency pair.

http://www.forexfactory.com/showthread.php?t=19293

Hope it works so that you do not lose more $
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