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Trading ahead of announcements

  • #1
  • First Post: Jun 23, 2004 12:56pm Jun 23, 2004 12:56pm
Recently bought(relatively cheap) a system/strategy that I would like opinions on. Basically, uses calendar of important announcements, and then places bracket order(a buy stop and a sell stop) around price just before announcement is made. Whichever order is hit first, the other one is then moved to a stop loss price.

I trade currency futures, not spot forex. And I know that this wouldn't work at all for futures, and for the most part, traders avoid entering trades at these times.

Comments?
  • #2
  • Jun 23, 2004 1:24pm Jun 23, 2004 1:24pm
You bought that strategy?
I posted my similar strategy a while ago on moneytec for free

This works indeed if you have a broker that guarantees a strict no-slippage.
Beware for noise though. If Buy stop and sell stop are too close, you might get whipsawed out.
This works also marvelous well with weekend gaps. Again, make sure you have a broker that has a strict no-slippage policy and fills you in the gap.

PS : A broker that you certainly should not use is CMS with this strategy.
  • #3
  • Jun 23, 2004 1:37pm Jun 23, 2004 1:37pm
Quoting Jambo
Recently bought(relatively cheap) a system/strategy that I would like opinions on. Basically, uses calendar of important announcements, and then places bracket order(a buy stop and a sell stop) around price just before announcement is made. Whichever order is hit first, the other one is then moved to a stop loss price.

I trade currency futures, not spot forex. And I know that this wouldn't work at all for futures, and for the most part, traders avoid entering trades at these times.

Comments?
I think this used to be working but recently there are up and down spikes and both orders can be triggered..
hmmm cheap
you can find this system on the internet for free (someone is selling it? )
  • #4
  • Jun 23, 2004 1:41pm Jun 23, 2004 1:41pm
hehe
i was late with my post:-)
sorry

p.s.
its better to wait for a while till market direction is established
  • #5
  • Jun 23, 2004 1:59pm Jun 23, 2004 1:59pm
Note that FXCM will ofen not let you place entry orders on either side of the price just before the news comes out.



LOU
  • #6
  • Jun 23, 2004 2:08pm Jun 23, 2004 2:08pm
Obviously, had I known what it was beforehand, I wouldn't have needed to buy it.



Quoting sidekick
You bought that strategy?
I posted my similar strategy a while ago on moneytec for free

This works indeed if you have a broker that guarantees a strict no-slippage.
Beware for noise though. If Buy stop and sell stop are too close, you might get whipsawed out.
This works also marvelous well with weekend gaps. Again, make sure you have a broker that has a strict no-slippage policy and fills you in the gap.

PS : A broker that you certainly should not use is CMS with this strategy.
  • #7
  • Jun 23, 2004 3:39pm Jun 23, 2004 3:39pm
take a look at the EURUSD on June 4th at 8:30AM EST and you will see how "straddle trades" can get you in trouble.
Relax and be happy.
  • #8
  • Jun 23, 2004 6:00pm Jun 23, 2004 6:00pm
Quoting merlin
take a look at the EURUSD on June 4th at 8:30AM EST and you will see how "straddle trades" can get you in trouble.
Of course, this is an example where it doesn't work. But on lots of other occasions, it does work.

Quoting Lou
Note that FXCM will ofen not let you place entry orders on either side of the price just before the news comes out.
Which is normal if you want to place an entry right before the announcement of an important news coming out, because the market is spiking like hell.
  • #9
  • Jun 23, 2004 6:04pm Jun 23, 2004 6:04pm
No that is not what I mean. I am talking about little or no market movement.

LOU
  • #10
  • Jun 23, 2004 6:32pm Jun 23, 2004 6:32pm
Quoting Lou
No that is not what I mean. I am talking about little or no market movement.

LOU
It looks like the market has no movement but in reality the market is really spiking like hell right before the news.
  • #11
  • Jun 23, 2004 7:05pm Jun 23, 2004 7:05pm
So when you use FXCM how much time before the news do you allow?

LOU
  • #12
  • Jun 23, 2004 7:44pm Jun 23, 2004 7:44pm
I believe that for the past 2 months (approx) FXCM restricts placing entry orders for 15 minutes prior to major news releases.
  • #13
  • Jun 23, 2004 8:08pm Jun 23, 2004 8:08pm
Thanks THAT was helpful.

LOU
  • #14
  • Jun 24, 2004 1:45am Jun 24, 2004 1:45am

I'm with FXCM and last month just before the news the trade station did not allow me to enter closer than about 500 pips away from current price in either direction. Ten minutes before the news it was at about 150 pips away from price. That was on live account and believe me in retrospect I was glad.

Another problem is that it takes about two minutes for the trade to go through so during that time in a spiky market you can not pull up your stops, change your limits or anything. If you don't get it right first time you've got a problem.

  • #15
  • Jun 24, 2004 5:05am Jun 24, 2004 5:05am
I have got a system that involves trading through spread betting options in order to trade important data. It involves short term options contracts. As long as the market move a minimum of 20 - 50 pips either way you make money. I think it's far better than trying to play with limit and stop orders as most brokers can't be trusted in a fast market. I recommend you study options for data, as I wouldn't go back to using limits now.
  • #16
  • Jun 24, 2004 9:03am Jun 24, 2004 9:03am
Thanks for your comments. As I said, I trade currency futures and I know there are some differences in orders, types of orders, slippage, etc. So, I wasn't sure if this would work for spot forex. Thanks again.



Quoting marejp

I'm with FXCM and last month just before the news the trade station did not allow me to enter closer than about 500 pips away from current price in either direction. Ten minutes before the news it was at about 150 pips away from price. That was on live account and believe me in retrospect I was glad.

Another problem is that it takes about two minutes for the trade to go through so during that time in a spiky market you can not pull up your stops, change your limits or anything. If you don't get it right first time you've got a problem.

  • #17
  • Jun 24, 2004 9:04am Jun 24, 2004 9:04am
Very interesting, thanks.


Quoting jambotrader
I have got a system that involves trading through spread betting options in order to trade important data. It involves short term options contracts. As long as the market move a minimum of 20 - 50 pips either way you make money. I think it's far better than trying to play with limit and stop orders as most brokers can't be trusted in a fast market. I recommend you study options for data, as I wouldn't go back to using limits now.
  • #18
  • Jul 9, 2004 10:47pm Jul 9, 2004 10:47pm
Hi Guys,

I use this statergy and made heck of bucks. I monitor important news like US payroll, Trade Balance, Industrial Production and place straddle trade 30 minutes before the news.(Refco dosnt allow to place trade before the news) and it works some time. my stop loss is just 5 pips and I move it entry point as soon as trade moves in right direction.

On July employment news I traded EUR/USD 12 lots and made a profit of 112 pips that makes 13440 $

Like Merline stated the 4 June US paryroll news was a disaster lost 1500 Dollors. But risk Reward ration is great so no problems.
Lets Make Money!!!
  • #19
  • Last Post: Jul 24, 2008 10:47am Jul 24, 2008 10:47am
I went to the www.fxmultibank.com site it sent me to en.fximgroup.com
Thery have the FXlQ logo ???????
And the look at the site whois for fxmultibank ?
Any one know if this is FXLQ under a new name ?
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