I have been thinking about straddling CB statements because they tend to give good movements when anticipated like the BOE statement tomorrow.
My concept is to straddle after the first 5-10 pips movement on GBPUSD after the statement.
My rationale is; directly after the statement banks put their orders at a better than market price. If the statement is bullish for GBP banks will put in buy orders below the current market price and we'll see a "head fake" move down prior to the impulse move up. I would enter my straddle after this head fake. Sometimes this does not occur and the prices just move in one direction straight away. If there is no head fake my straddle is entered at 5-10 pips away from pre news prices and triggers a long at 10-15 pips above pre news prices.
I use an API with money management built in to enter straddles so I can enter straddles very quickly "x" pips away from market with breakeven trailing stop and multiple take profits. I also limit slippage so if the market gaps too much I do not get filled. Entry orders expire after "x" seconds if the market does not trigger them. This is all built into my api for ease of trading and to capitalize on quick moves or dangerous whipsaws.
My concept is to straddle after the first 5-10 pips movement on GBPUSD after the statement.
My rationale is; directly after the statement banks put their orders at a better than market price. If the statement is bullish for GBP banks will put in buy orders below the current market price and we'll see a "head fake" move down prior to the impulse move up. I would enter my straddle after this head fake. Sometimes this does not occur and the prices just move in one direction straight away. If there is no head fake my straddle is entered at 5-10 pips away from pre news prices and triggers a long at 10-15 pips above pre news prices.
I use an API with money management built in to enter straddles so I can enter straddles very quickly "x" pips away from market with breakeven trailing stop and multiple take profits. I also limit slippage so if the market gaps too much I do not get filled. Entry orders expire after "x" seconds if the market does not trigger them. This is all built into my api for ease of trading and to capitalize on quick moves or dangerous whipsaws.
It really is that easy.
