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How to trade NFP/FOMC and make pips

  • #81
  • Aug 4, 2014 11:40am Aug 4, 2014 11:40am
Quoting binnie
found that FXCM don't allow hedging
Hi Binnie, all FXCM entities worldwide allow hedging except for FXCM US due to regulations prohibiting hedging in America. Your forum profile mentions that you live in New Zealand which means you can open a hedging-enabled account with FXCM AU which is regulated by ASIC.
  • #82
  • Aug 5, 2014 5:52am Aug 5, 2014 5:52am
Quoting Scoobidoobi
{quote} Thanks Nico for explanation. FOMC and NFP are major news for USD likewise we have other major events for EUR,GBP,AUD,CAD and NZD to trade also. The idea to take 6 longs (3 USD XXX pairs + 3 XXX USD pairs) 7minutes before the news is to have the underline news currency USD in an indirect hedged equilibrium, so that we are not much affected if the news move USD up or down. Also we have pending sell orders to take care of the wrong orders by locking them.
so what you actualy mean is that the same strategy can be used for other NEWS event,the most iportant thing is to follow the rules
  • #83
  • Aug 5, 2014 7:51am Aug 5, 2014 7:51am
Quoting Scoobidoobi
{quote} Let Mr Market decide where it wants to go, our objective is to book profits as simple as that : To avail profits do the following : Have 2 Accounts : Account 1: Take all 6 buys 0.1 lot and keep sell pending orders at 30pips distance 0.2 lots as discussed Account 2 : Take all 6 sells 0.1 lot and keep buy pending orders at 30pips distance 0.2 lots as discussed you can make double pips this way , use the trailstop EA I have posted earlier by setting ProfitTarget parameter on the both accounts (assuming its MT4 based) and book $$ Cheers Have...

Hi Scoobi,

Im new in the trading world.. can you explain clear what you mean by the Pending order?? is it a (sell/Buy) Limit order or (Sell/Buy) Stop order..
thanks
  • #84
  • Aug 5, 2014 8:19am Aug 5, 2014 8:19am
Quoting elleell
{quote} Hi Scoobi, Im new in the trading world.. can you explain clear what you mean by the Pending order?? is it a (sell/Buy) Limit order or (Sell/Buy) Stop order.. thanks

Use Stop pending orders

Scooobi, you gave recommendations for USD news, do you have any for EUR pairs? The reason i ask is most brokers dont have 3 xxxEUR but lots of EURxxx. In this case would you enter them in reverse? Would you always use 30pips gap or maybe use a factor of ADR?

For example:

0.1 BUY EURJPY
0.1 BUY EURAUD
0.1 BUY EURCAD
0.1 SELL EURNZD
0.1 SELL EURGBP
0.1 SELL EURCHF

30pips away:
0.2 SELL STOP EURJPY
0.2 SELL STOP EURAUD
0.2 SELL STOP EURCAD
0.2 BUY STOP EURNZD
0.2 BUY STOP EURGBP
0.2 BUY STOP EURCHF

Regards

Mike
  • #85
  • Aug 5, 2014 8:20am Aug 5, 2014 8:20am
Scoobi,
Thank you very much for sharing this idea. I used it today on the USD. So far I am still in the USD/CAD, making good $$, something which NEVER would have happened if you hadn't been so unselfish and shared your strategy. Thank you again. I will use this strategy the rest of my trading career. I will definitely use it tonight at 9:30pm (USA time) on the NZD.

Scoobi, if you ever come to America, I owe you a round of golf at a very nice golf course...
  • #86
  • Aug 5, 2014 8:27am Aug 5, 2014 8:27am
  •  FerruFx
  • Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts | Online Now
Quoting elleell
{quote} Hi Scoobi, Im new in the trading world.. can you explain clear what you mean by the Pending order?? is it a (sell/Buy) Limit order or (Sell/Buy) Stop order.. thanks
If you don't know what is a pending order, you shouldn't even read this thread.

The very first thing you should do is to learn the basics. I would highly suggest you to take a look here : http://www.babypips.com
MT4/MT5 EAs/Indicators/Alerts coder
  • #87
  • Edited 9:29am Aug 5, 2014 9:18am | Edited 9:29am
Quoting Jimtrade
Scoobi, Thank you very much for sharing this idea. I used it today on the USD. So far I am still in the USD/CAD, making good $$, something which NEVER would have happened if you hadn't been so unselfish and shared your strategy. Thank you again. I will use this strategy the rest of my trading career. I will definitely use it tonight at 9:30pm (USA time) on the NZD. Scoobi, if you ever come to America, I owe you a round of golf at a very nice golf course...
haha Jim, thanks for the kind words. we can meet some where in vegas/macau u never know catching up on a drink


Btw guys today we can make good pips on NZD Data coming shortly ( 2 High Impact data on the way), before that itself PA suggests NZD wants to drop hard.

Lets not speculate or predict the data ahead, our strategy for NZD would be using the below pairs for today :

NZD USD
NZD JPY
NZD CAD

EUR NZD

AUD NZD

GBP NZD

Personally am planning to do 6 buys of the above pairs with sell orders (2x lotsize) stacked below 25pips apart on Account 1

and on other account 6 sells of the above pairs with buy orders (2x lot size) stacked above 25pips apart on Account 2

Going by current PA, it suggests BIG MOVE on the way lets get GREEN Pips, lets not deviate from the strategy rather make the optimum use of it!

May all get GREEN PIPS God Bless!

-Scoobi
Scoobi doobi doo
  • #88
  • Aug 5, 2014 9:26am Aug 5, 2014 9:26am
Quoting magft
{quote} Use Stop pending orders Scooobi, you gave recommendations for USD news, do you have any for EUR pairs? The reason i ask is most brokers dont have 3 xxxEUR but lots of EURxxx. In this case would you enter them in reverse? Would you always use 30pips gap or maybe use a factor of ADR? For example: 0.1 BUY EURJPY 0.1 BUY EURAUD 0.1 BUY EURCAD 0.1 SELL EURNZD 0.1 SELL EURGBP 0.1 SELL EURCHF 30pips away: 0.2 SELL STOP EURJPY 0.2 SELL STOP EURAUD 0.2 SELL STOP EURCAD 0.2 BUY STOP EURNZD 0.2 BUY STOP EURGBP 0.2 BUY STOP EURCHF Regards Mike

Mike,

You wont find XXX EUR in your platform don't worry I can think of XAU EUR (Gold Vs Euro) available on my platform. Lets not use that.

Incase of EUR Data: ( this will maintain the equilibrium 0.3 lots nett long EUR= 0.3 lots nett short EUR going into "High Impact" Data)

0.1 BUY EUR USD

0.1 BUY EUR JPY

0.1 BUY EUR CAD

0.1 SELL EUR NZD

0.1 SELL EUR AUD

0.1 SELL EUR GBP

with appropriate sell stops and buy stops placed would do the job as you mentioned. Thanks!
Scoobi doobi doo
  • #89
  • Aug 5, 2014 12:03pm Aug 5, 2014 12:03pm
hi,

What about spread, slippage, requotes for this strategy ?
  • #90
  • Aug 5, 2014 12:22pm Aug 5, 2014 12:22pm
Quoting jonimemonic
hi, What about spread, slippage, requotes for this strategy ?
One big lose destroy whole system
  • #91
  • Aug 5, 2014 12:25pm Aug 5, 2014 12:25pm
Quoting jonimemonic
hi, What about spread, slippage, requotes for this strategy ?

If you have an ecn a/c, spreads should be decent. ofcourse slippage will be there if you start placing market and pending orders at news time , thats why we stay ahead by placing 7min prior.
Scoobi doobi doo
  • #92
  • Aug 5, 2014 12:27pm Aug 5, 2014 12:27pm
Quoting Naokia980
{quote} One big lose destroy whole system

Naokia,

we have 2x times pending orders placed in the opposite direction for all the open orders to protect.
Scoobi doobi doo
  • #93
  • Aug 5, 2014 12:28pm Aug 5, 2014 12:28pm
Quoting Scoobidoobi
{quote} Naokia, we have 2x times pending orders placed in the opposite direction for all the open orders to protect.

hello Nico,

How u doing today, we have two heavy weight NZD data lined up today. geared up for trading it?
Scoobi doobi doo
  • #94
  • Aug 5, 2014 12:31pm Aug 5, 2014 12:31pm
Quoting Scoobidoobi
{quote} 0.1 BUY EUR USD 0.1 BUY EUR JPY 0.1 BUY EUR CAD 0.1 SELL EUR NZD 0.1 SELL EUR AUD 0.1 SELL EUR GBP
Better to keep in mind that on most brokers pairs have different pip value, and especially big difference is with EURGBP.
  • #95
  • Aug 5, 2014 12:36pm Aug 5, 2014 12:36pm
Quoting Scoobidoobi
{quote} Naokia, we have 2x times pending orders placed in the opposite direction for all the open orders to protect.
I recently traded news for last 3 years.. This settings dont give you edge when pairs like cad, gbp, nzd going crazy(whipsaw). Take example..Check ecb statement before speech on may... Liquid pairs like eur/usd first react smalll drop (20 pip)--> shooted up 60 pip not yet!-0-> then shooted down 80 pip on 1 tick!!! If add negative bias like slippage,, max spreads; this sounds like nightmare from hell
  • #96
  • Aug 6, 2014 5:21am Aug 6, 2014 5:21am
Quoting FerruFx
{quote} If you don't know what is a pending order, you shouldn't even read this thread. The very first thing you should do is to learn the basics. I would highly suggest you to take a look here : http://www.babypips.com
FerruFX,
Thanks for your advice. Been learning the Babypips since i start trade 1 years ago, sorry of if my english is no up to your standard.

Rgds
  • #97
  • Aug 6, 2014 5:41am Aug 6, 2014 5:41am
Quoting Scoobidoobi
{quote} Mike, You wont find XXX EUR in your platform don't worry I can think of XAU EUR (Gold Vs Euro) available on my platform. Lets not use that. Incase of EUR Data: ( this will maintain the equilibrium 0.3 lots nett long EUR= 0.3 lots nett short EUR going into "High Impact" Data) 0.1 BUY EUR USD 0.1 BUY EUR JPY 0.1 BUY EUR CAD 0.1 SELL EUR NZD 0.1 SELL EUR AUD 0.1 SELL EUR GBP with appropriate sell stops and buy stops placed would do the job as you mentioned. Thanks!
Scoobi,

Thanks for the trade idea.. I had try the trade twice, both set as profit of USD50 to close. the 1st trade is a success, but the 2nd trade is success also but the profit is over USD50 ( about USD133), as i increase the LOT size, however after the trade closed, theres a 3 pending trade still not auto closed.
Attached are the screen shot, kindly advice. Thanks once again.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Jpg1.jpg Size: 263 KB
Click to Enlarge Name: Jpg2.jpg Size: 111 KB
  • #98
  • Aug 6, 2014 5:42am Aug 6, 2014 5:42am
Quoting magft
{quote} Use Stop pending orders Scooobi, you gave recommendations for USD news, do you have any for EUR pairs? The reason i ask is most brokers dont have 3 xxxEUR but lots of EURxxx. In this case would you enter them in reverse? Would you always use 30pips gap or maybe use a factor of ADR? For example: 0.1 BUY EURJPY 0.1 BUY EURAUD 0.1 BUY EURCAD 0.1 SELL EURNZD 0.1 SELL EURGBP 0.1 SELL EURCHF 30pips away: 0.2 SELL STOP EURJPY 0.2 SELL STOP EURAUD 0.2 SELL STOP EURCAD 0.2 BUY STOP EURNZD 0.2 BUY STOP EURGBP 0.2 BUY STOP EURCHF Regards Mike
Magft, Thanks you.
  • #99
  • Edited 6:29am Aug 6, 2014 6:17am | Edited 6:29am
I completely understand 100% how this strategy works IN THEORY

However, In Actuality; Wouldn't the Pending Orders get filled at a ridiculous price? The entire strategy (I've analyzed it in extreme detail) is hinged upon the Pending Orders producing a profit, whilst the Main Opened Positions are hedged against one another.

Assuming a Pending Order is placed at 30 pips distance away and the NFP/news event produces an instant 50 pip move, there is no way the Pending Order would get filled at 30 pips away, it would get filled at 50 pips away. Worst case scenario the move would retrace and now you would have a double-weighted negative position.

For example, considering XXXUSD using EURUSD

Open Buy 1 Lot @ 1.3010
Pending Sell 2Lot @ 1.2080 30 pips away, placed 5-10 mins before event.


NFP opens at 8:30:00am EST and drops 50 pips instantly to 1.2060 hitting Pending Orders, then retraces as news events almost ALWAYS DO after initial move, hence why news events are commonly faded, assume retracement rally of 30 pips to 1.2090

Main Open Position (Original Buy) is -20 pips
Pending Sell @ 1.2080 gets filled at 1.2060 and is now -30 x 2 = -60 pips after retracement rally

Even with a Stop Loss of 5 pips on Pending Sell, this would mean a loss of -10 pips on Pending Position, 20 pip loss on Main Position and 20 pip gain on Opposite Corresponding USDXXX pair i.e. USDJPY


The ENTIRE STRATEGY is based upon the FILL PRICE OF THE PENDING ORDER THAT GETS ACTIVATED

How does this strategy work??? Can you explain using the fill price of Pending Orders. Don't worry about the hedging of the main XXXUSD/USDXXX positions that part makes complete sense, the entire strategy is hinged upon the Pending Order that actually gets activated.


If you choose to use Slippage Control on Pending Orders, than this gets transformed into the exact same strategy as using Bracket or OCO orders where a Buy and Sell can both be placed 30 pips away and 1 will get activated and the other cancelled, except this Bracket Pending Order strategy is MUCH MORE EFFICIENT and SIMPLE because it uses less open positions and therefore you can use larger amounts and much, much simpler structure and execution. Again, the only issue with this strategy is the fill price.


With your strategy you are attempting to trade the INITIAL ACTIONARY MOVE as opposed to FADING THE RE-ACTIONARY MOVE. Can you please clarify how this works speaking only on Actual Fill Price of Pending Order. That is the only caveat of this strategy and is why the people that actually posted their entries have had non-optimal results. I'm surprised that you Scoobie have not posted a single chart of your entries thus far in 5 pages. To be honest I really don't think you strategy works because you can't get filled at 30 pips away if a huge 50-60 pip move occurs instantly. I also believe that is why you not only did not post your results, but have also asked others to post their entries instead.

I hope I am incorrect in this characterization, please prove me wrong. I would sincerely love to know how you have combated the Actual Fill Price issue.
  • #100
  • Aug 6, 2014 7:29am Aug 6, 2014 7:29am
Quoting ronnie888
I completely understand 100% how this strategy works IN THEORY However, In Actuality; Wouldn't the Pending Orders get filled at a ridiculous price? The entire strategy (I've analyzed it in extreme detail) is hinged upon the Pending Orders producing a profit, whilst the Main Opened Positions are hedged against one another. Assuming a Pending Order is placed at 30 pips distance away and the NFP/news event produces an instant 50 pip move, there is no way the Pending Order would get filled at 30 pips away, it would get filled at 50 pips away. Worst...


Thanks Ronnie for taking time to analyze. To be fair enough if you are on top notch ECN broker whom you trust, filling up the pending order
would be the last thing to worry if you are on standard account instead of STP/ECN account it ofcourse becomes an issue.

You can try to keep the pending orders bit close if you worry on that filling aspect per say 25pips and give it a go!
Scoobi doobi doo
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