Hi Guys
Over the past 6 months i have been trading purely on chart technicals, watching 16 pairs, and taking trades with tp/sl usually around 80 to 120 pips. Usually i would take about 5-8 trades per week, some times more some times less.
I was pleased with my performance up until recently, when i got badly burned on news related volatility resulting in S/R levels not being respected, losing most my previous profits. I am not so good at analysing fundamentals and economic indicators, and it is not really my interest too much either, i prefer to trade using TA.
What i found was that my average trade duration was about 24 hours, but some trades would be open for as long as a week, and so it was not really possible for me to avoid news times, as there is rarely a 24 hour period without some scheduled news. This meant when i took a trade, i either had to just hope for the best, or go on a what indications i had as to how the upcoming news was going to impact price action.
I think when you trade with a tp and sl of about 300 pips, news volatility is not so much of an issues, and the fundamental picture is likely to be incorporated into price anyway on the daily charts, so it is maybe possible to trade purely technicals and ignore news.
Also if you trade with a tp/sl of about 20 pips, your trade duration is probably going to be about 1 hour, so there is the possibility to avoid news times, and only open exposure when there is a run of several hours with no scheduled news.
On average news is going to half of the time go your way and half of the time go against you, so you can theoretically just rely on your TA edge that is there when there is no news. but this seems a bit inefficient.
So i am just wondering how technical traders who don't do fundamental analysis manage with trade durations of around 1 day?
Over the past 6 months i have been trading purely on chart technicals, watching 16 pairs, and taking trades with tp/sl usually around 80 to 120 pips. Usually i would take about 5-8 trades per week, some times more some times less.
I was pleased with my performance up until recently, when i got badly burned on news related volatility resulting in S/R levels not being respected, losing most my previous profits. I am not so good at analysing fundamentals and economic indicators, and it is not really my interest too much either, i prefer to trade using TA.
What i found was that my average trade duration was about 24 hours, but some trades would be open for as long as a week, and so it was not really possible for me to avoid news times, as there is rarely a 24 hour period without some scheduled news. This meant when i took a trade, i either had to just hope for the best, or go on a what indications i had as to how the upcoming news was going to impact price action.
I think when you trade with a tp and sl of about 300 pips, news volatility is not so much of an issues, and the fundamental picture is likely to be incorporated into price anyway on the daily charts, so it is maybe possible to trade purely technicals and ignore news.
Also if you trade with a tp/sl of about 20 pips, your trade duration is probably going to be about 1 hour, so there is the possibility to avoid news times, and only open exposure when there is a run of several hours with no scheduled news.
On average news is going to half of the time go your way and half of the time go against you, so you can theoretically just rely on your TA edge that is there when there is no news. but this seems a bit inefficient.
So i am just wondering how technical traders who don't do fundamental analysis manage with trade durations of around 1 day?
......
