News Trading With Futures Vs Forex

OK, for all of those newstraders out there who lost money trading forex.

How many times were your orders rejected?

How many times did the broker hold your order to fill you at the wrong end of the spike?

How many times did your broker manipulate the spread?

I have attached a quick presentation to show you how to get around all of this by trading currency futures instead of spot forex. Take a look and feel free to ask questions.

I haven't read your pdf, but I traded emini futures and had a hell of a time getting filled- particularly with limit orders.
That is the main reason I stopped trading them.

I have been using currency futures and never have issues getting filled.

What order type were you using to enter the market and what contract if I may ask?

I traded emini Russell, Dow and S&P. They have more volume than currency futures.

My problem was with limit orders. I used them for profit targets, just as I do in forex.

It wasn't unusual for price to bounce off of my TP twice or three times before getting filled.

Most of the time I lost profits. It would hit my limit order- not get filled- then turn and go the other way.

Where I put the limit order can depend on the news numbers. When trading the currency, I usually try to bag ten ticks on a small dev, and 20 or more on a larger dev.

As long as the deviation is appropriate, this tactic works out pretty well for me. The markets normally move well past my targets.

Here is a link to an example of my ten tick limit getting filled on a very small deviation:
http://www.ragandatatrading.com/blog...-mm-6-30-2010/

And here is one that gave me a larger deviation, so it triggered a limit to take 20 ticks.
http://www.ragandatatrading.com/blog...ange-5-7-2010/

Trading news is the same as trading equities during expected major news. Even equity brokers have hard times filling shares. Plenty of times I get a hot tip on a company and my primary equity broker doesn't have enough shares to sell. In a lot of cases, my broker doesn't have any shares to sell me. Which is why ALL professional equity traders trade a minimum of 3 brokers. If ThinkorSwim doesn't have the shares, you look to see if IB have a few to sell. I many cases one broker may not have enough shares to sell, so I buy what they have and buy the rest with another broker.

Spot fx brokers are the same. In many cases, traders are looking to buy into a pair 5min before news release. So you broker is usually playing against the clock to fill your order by finding someone looking to place an opposite order. Most of the time, you broker will be unsuccessful in finding a counter-party to your position or will only be able to partially fill the order. And yes your broker could be the counter party to your position but most/all brokers will not risk the lose for you.

This is the nature of the business and it's not personal so don't take it personal. It not only happens in forex, but equities and futures as well. News traders need to know the risks involved first before placing an order. As news traders, you should have already accept the fact that 80% of your orders will not be filled properly because the nature of this business.

Jhig, I have never had an issue getting my order filled in futures. I use market order to enter the news trade and limit orders to exit. On rare occasion, the market may not reach the limit I am looking for. But having the right dev requirement normally keeps this from happening.

futures are starting to get promo'd pretty heavily around here. are you guys having trouble or something?

You guys?

I think with a good ECN or DMA broker news trading isn't a problem.
But futures also work fine.

I have found that futures currencies have tighter spreads than ECN brokers. There is also no manipulation by a dealing desk.

http://www.ragandatatrading.com/blog...mm-11-17-2010/

Had a very nice move in the TY futures contract from the news this morning.

There was a VERY HIGH deviation that gave us a great trading opportunity. I was busy with the Profit Mongers room and a few other item, so I didn’t get set up to trade in time. But another trader using Fast Economic News did report a trade to me. He was filled at 1191.75 which I have marked on the chart in the post. As you can see he could have held the position for some time. e-mini S&P has made a high of 1198.75 so far this morning.

Take a look at the video here: http://www.ragandatatrading.com/blog...10-with-trade/

I have never had problems getting filled in currency futures, even during news times.

I work with people who focus mostly on news trading and they have been having challenges for years.