Cleaning Up The News

Trading the news. Jeppo will explain the strategy and post some charts.

The method is very simple and when used correctly will be a great $ maker.

I was lucky enough to be taught this by a former fx trader at a large Australian bank. Its nothing magical nor is it complex.

When i asked him why doesnt everyone trade news the reply was this..

" Most trading courses steer away from event trading Why? Because they are not traders and they dont know how to trade real live markets. For professional traders this is our bread and butter and the best time to pick up some quick cash."

Method is as follows.

25 point Stop Loss
75 point Take Profit

30 minutes before a high impact news event i will be looking at the pair in question to find minor S/R. Above and below this is where i will be placing two stop orders a buy stop above and a sell stop below. This has the effect of boxing in price. Setting above and below minor S/R gives us a safety factor and also supports the trade once it occurs. Once the trade happens i will be looking for deviation from the forecast result. If no deviation occurs then all bets are off and we live to trade another day.

Once in the trade

I move my Stop Loss to Break Even at +35 pips. Once +60 points in profit i will move my Stop Loss to +45 and either get stopped out +45 or hit my profit target at +75.

Its as simple as that.

The Setup

http://www.forexfactory.com/attachme...1&d=1288416648

The Break

http://www.forexfactory.com/attachme...1&d=1288416734

Continue down

http://www.forexfactory.com/attachme...1&d=1288416814


I will keep posting charts as the events i trade happen. Winners and the stop outs. This trade had slippage and ended up with a profit of +68 points.

Monday - GBP Manufacturing PMI

Tuesday - AUD RBA Rate Statement - Big one!!

Wednesday - USD ADP Non-Farm Employment Change

Thursday - USD FOMC Statement, Unemployment Claims
AUD Retail Sales m/m, Trade Balance

Will be taking friday off!!. Massive week of economic data.

Hi jeppofx,

Have you tried this on US Non-Farm Payroll?

pipsacker

Gday mate!. Yes i have.. not for the faint hearted thats for sure and slippage is always a problem with non farm!. See how we go this week!.

Hi Jeppofx,

I just a newbie and I have trade with the news a lot.

How do you set the S/R? Is it in fix pips like 15 pips from the bid/ask line? Because when you watch the pair 30 minutes before the news, its often we get minor trend line and then after that it just reversed minutes before news.

I can't change my stop trade that quickly, especially with my internet connection now.

thanks.

Thanks, jeppofx.

pipsacker

No dramas mate!. Hopefully we have a good week and get some trades up on the thread.

Hey koi

I try to find minor s/r where price is before the trade. Place your stop orders above or below these points. This will protect you from swings before the announcement and also help push the trade because the S/R has been broken after the news release. I dont use any fixed pips away from minor S/R just discretionary depending on how it looks.

Secondly i would recommend you get yourself a quick internet connection if your going to be trading the news!. its hard enough as it is!. I will only place my orders 5 or 10 mins before hand to also avoid any early movements.

Cheers

Jeppo

How about this? Pairs goes down trigger you Sell stop and U-turn

hit stop loss, Triggers your Buy Stop and then go down again, take your

second stop loss, done- That's Forex.

Could happens many times while trading news especially when
your stop losses not that far and on the middle
of the range.

haha thanks for the advice mate!

Hi jeppofx

How long have you trading by the news?
Can you share which pair that good to trade with.
I try the USD news and always give me a bad result. GBP news comes 50/50. AUD sometimes a good one.

Hi Jeppo

I guess this is what you are saying.

By the way....go the swannies!!!

Koi

I have only been trading a couple of years so im quite new also!. The biggest problem i've found with all the trading systems i've tried is the over complication!. Trading simple support and resistence beats the heck out of any indicator based system.

In regards to what pairs i trade the AUD NZD and for USD data i will trade the EUR/USD. Try to stick clear of the USD/JPY.

Also getting a good news service is vital. Waiting for a result off FF will get you left behind. You need to get the news when the market does.

Ezzy thought it would take longer than this to get a swans supporter on here!! haha!!! Carn the woods!!!

Hey guys just a quick update. Better than expected data for the USD. Got a nice break through minor support and now at break even and a risk free trade. Could take half here but with the huge amount of data coming out this week im not really bothered if it stops me out at BE. Cheers!

http://www.forexfactory.com/attachme...1&d=1288625966

Hi jeppofx,

Watched that one. A little late setting things up.
Your earlier examples used the H1. This trade used the M30. Do you have a preference?
Thanks.

pipsacker

gday pip!

Sorry mate i must of been looking at the 30 when i took the pic!. Only charts i trade off are the Daily and the 1H. Was quite a slow starter that one!.

To add on that 1H for news trading, but for my range trades and breakout trade i will also look for S/R on the daily!.

Can you recommend any websites not for pay? You can pm/ e-mail me if this breaks forum rules, not sure about rules for links.