How do you trade news? | Page 12 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

If you haven't made it yet, what makes you think you will? 212 replies

Trade What You Know and Know What You Trade 4 replies

FX News Calendar as Wallpaper (if you consider news trading) 8 replies

will you trade today ??? Dec 25 ? when will you trade back ? 6 replies

Attachments: How do you trade news?
Exit Attachments

How do you trade news?

  • #221
  • Jul 21, 2006 6:36am Jul 21, 2006 6:36am
Quoting jlowder
What has been your impression of the market reaction time as compared to these speech releases? It's 9:04 (CST) and I see nothing - it could be that he had nothing special to say or that he hasn't completed the speech.
Hey J,

Bernanke speaks before Congress: first day to the Senate; second day to the House of Representatives. But he uses the same speech for both. Thus the probability of movement is higher the first day, since the second day is essentially a repeat of day one. Or you could say day one is a dress rehearsal for day two.

The reason I watch both days is because he could say something dramatic in response to a member's question. That did not happen yesterday and thus there were no sharp market moves such as that which occurred on Wednesday.

Just information; not a recommendation.
  • #222
  • Jul 21, 2006 6:43am Jul 21, 2006 6:43am
Quoting jcsmesquita
Thanks for the feedback MM! I've built a spreadsheet to test values & risk management with straddle, I'll be doing some research on the news which make the market move like you mentioned in your thread.

I'll post updates on how I go.

Thanks again,
Carlos
Cool Carlos; that will be a blessing for everyone trading the news.
  • #223
  • Jul 21, 2006 7:41am Jul 21, 2006 7:41am
Quoting MoneyMa$ter
Hey Jason,

5 minutes around 20 minutes before announcement; reduced to 3 minutes at roughly the 10 minute mark; then 1 minute from about 5 minutes out going into the announcement. That's on the 4XME system, which is not a price charting system but a reflection of buying and selling pressure in the market, combined with volume.

Just information; not a recommendation.
Are you refering to the $4,000 red light/green light software or something else? (There is a lot of bad press about it here and elsewhere). This has my interest as I've never heard of this before. Care to expand on how you make use of it?

Thanks as always,

Jason
  • #224
  • Jul 21, 2006 5:03pm Jul 21, 2006 5:03pm
Money Ma$ter, I'm curious man, do you trade only news? If so, how many trades do you have a month on average?
  • #225
  • Jul 21, 2006 10:32pm Jul 21, 2006 10:32pm
Quoting jessieblue
Money Ma$ter, I'm curious man, do you trade only news? If so, how many trades do you have a month on average?
Jessie,

I trade the news and only the news. My plan calls for less than 20 trades per month, more like 7-12 or so. See my post dated July 17th in this thread for more details.
  • #226
  • Jul 21, 2006 10:51pm Jul 21, 2006 10:51pm
Quoting jlowder
Are you refering to the $4,000 red light/green light software or something else? (There is a lot of bad press about it here and elsewhere). This has my interest as I've never heard of this before. Care to expand on how you make use of it?

Thanks as always,

Jason
Hey J,

Let me first say I am not affiliated with 4xme aside from using their software. In fact, 4xme incorporated MB Trading in their platform and my thoughts about MB Trading have been expressed elsewhere in FF. This is by no means an endorsement of their product(s) but rather an informed response to your inquiry.

Numerous traders us 4xme for their pivot point strategy and it's supposedly successful. Others use 4xme for long term trading. Below is the link to the "official" 4xme board (similar to FF):

http://finance.groups.yahoo.com/group/4xmadeeasy/

Then there's something called Forex Manager, a forum created by investors for the purpose of exploring 4xme educational tools.

Because it reflects buying and selling pressure (rather than price charting), it claims to show buying and selling trends and as such provide signals that supposedly confirm longs and shorts and the trader's subsequent order entry [if I sound like a lawyer, well...... it's because I was in another life, when I worked for a living ].

I use it as a confirmation of my broker's trading platform, particularly during volatile moments as well as monitoring price action prior to the news. So 4xme is one screen while FXSol is on another. Now I know why God gave me two (2) eyes!!!

Just information; not a recommendation.
  • #227
  • Jul 22, 2006 3:52am Jul 22, 2006 3:52am
Quoting MoneyMa$ter
Jessie,

I trade the news and only the news. My plan calls for less than 20 trades per month, more like 7-12 or so. See my post dated July 17th in this thread for more details.
So you make about 10 trades a month, you place straddles before news and you get out a few secconds after with a profit. Don't you get slippage, requotes, manual execution? I tried to play the tradeballance a week ago and got about 25 pip slippage. Now I have news fobia. Who's your broker? If you can't say, give me a PM.

Oh, wait, I just read the above reply. So, FxSol. But the other question still stands. FxSol does'nt slip you? Have you ever had problems in execution there?
  • #228
  • Jul 22, 2006 2:03pm Jul 22, 2006 2:03pm
Quoting jessieblue
So you make about 10 trades a month, you place straddles before news and you get out a few secconds after with a profit. Don't you get slippage, requotes, manual execution? I tried to play the tradeballance a week ago and got about 25 pip slippage. Now I have news fobia. Who's your broker? If you can't say, give me a PM.

Oh, wait, I just read the above reply. So, FxSol. But the other question still stands. FxSol does'nt slip you? Have you ever had problems in execution there?

About the broker, i use gain capital, and works pretty good, they don´t use big spreads during the news
Have a good day and a good trade!
  • #229
  • Jul 22, 2006 5:34pm Jul 22, 2006 5:34pm
Hi JTacher,

I just checked out gaincapital.com, they only serve institutions and high volume pro traders - requiring 50million of volume per month.

For those of us who do not meet the 50M threshold, it seems we can open accounts with GAIN's retail outfit Forex.com, which becomes far less appealing.

Is my understanding right? Thanks.

PM
  • #230
  • Jul 23, 2006 11:01am Jul 23, 2006 11:01am
I attempted a trade on the Canadian CPI Friday, but the USD/CAD changed almost instantaneously 30 pips. There was no chance to straddle that trade and get in.
Is this typical for big news events (NFP, Interest rates, CPI, etc.)? For the people that are successful in news trades, how often does this happen?
Thanks!
  • #231
  • Jul 23, 2006 11:41am Jul 23, 2006 11:41am
Quoting jessieblue
Oh, wait, I just read the above reply. So, FxSol. But the other question still stands. FxSol does'nt slip you? Have you ever had problems in execution there?
Jessie,

I've had no problems with FXSol. None. Nada. Zip. Zilch. Zero.

Just information. Not a recommendation.
  • #232
  • Jul 23, 2006 11:53am Jul 23, 2006 11:53am
Quoting falcon232
I attempted a trade on the Canadian CPI Friday, but the USD/CAD changed almost instantaneously 30 pips. There was no chance to straddle that trade and get in.
Thanks!
Falcon,

Many news events move FX markets "instantaneously"; that's what some newstraders live for, myself included. Other newstraders enter the market after that initial push, once a trend the currency pair establishes a clear trend.

So before I (or anyone else for that matter) can respond intelligently to your inquiry, please provide a little more information regarding your attempted trade. Who is your broker? Are you using the demo platform or truly trading? Are you trading standard lots, minis, mini-minis? Describe your actions during the final three minutes leading up to the CPI announcement, e.g., did you submit your straddle (and it subsequently failed?), what was the market price and where did you place your long and short stop markets/limit entries.
  • #233
  • Jul 23, 2006 12:09pm Jul 23, 2006 12:09pm
Quoting jtacher
About the broker, i use gain capital, and works pretty good, they don´t use big spreads during the news
You are right, gain capital is the bank or main institution, is forex.com the one i use. usually the spred in news in eur/usd is 3 -4 pips, and with out news is 3 pips, in the yen is 5 pips, with no news is 3 pips... so you can affor it
Have a good day and a good trade!
  • #234
  • Jul 23, 2006 3:59pm Jul 23, 2006 3:59pm
MoneyMa$ter, do u use hedging system when trading news under fxsolutions?
Have a good day and a good trade!
  • #235
  • Jul 23, 2006 7:10pm Jul 23, 2006 7:10pm
Quoting jtacher
MoneyMa$ter, do u use hedging system when trading news under fxsolutions?
Yes. For further info, please see my note dated July 17, 2006 in this thread.
  • #236
  • Jul 24, 2006 7:57am Jul 24, 2006 7:57am
Hey MM,

Just a quick update on the news trading, I've done some research up to beginning of May (that's as far as I could go with Metatrader) for EUR/USD and I've sumed it all up to 6 news releases per month. I've filtered them using the following criteria: The pip move must be above 70 either way, the necessary stop loss for the straddle is 15 pips or less, and finally the duration of the pip move is below 2 hrs (some carry on to 5 hrs but yield up to a 150 pip move).

To allow for inconsistencies I will be taking a profit at 60 pips, with a straddle stop of 25 pips. This equates to a 2.50% profit (per trade won) and 1.75% loss (per trade lost).

As you can see I'm not aiming for mind blowing profits - "Pigs get fat; hogs get slaughtered" =P

This week I've got 2 trades coming up (Thursday and Friday), unfortunately it'll be my only chance to paper trade for the next 3 weeks because I'm not going to be around for most of August. Hopefuly they'll give me the chance to get hit by some angle I may have left out and to tweak my strategy.

I just wanted to ask you what sort of % risk you have per trade on your equity? You mentioned you can get up to 50-80% profit (round about these figures I think) per trade I was just wondering what sort of risk you had.

Hope you & everyone's had a good weekend,
Carlos
  • #237
  • Jul 24, 2006 8:27am Jul 24, 2006 8:27am
Quoting jcsmesquita
Hey MM,

Just a quick update on the news trading, I've done some research up to beginning of May (that's as far as I could go with Metatrader) for EUR/USD and I've sumed it all up to 6 news releases per month. I've filtered them using the following criteria: The pip move must be above 70 either way, the necessary stop loss for the straddle is 15 pips or less, and finally the duration of the pip move is below 2 hrs (some carry on to 5 hrs but yield up to a 150 pip move).

To allow for inconsistencies I will be taking a profit at 60 pips, with a straddle stop of 25 pips. This equates to a 2.50% profit (per trade won) and 1.75% loss (per trade lost).

As you can see I'm not aiming for mind blowing profits - "Pigs get fat; hogs get slaughtered" =P

Carlos
Carolos,

Sounds great!! You're developing a strategy that works for you, based on your criteria. Outstanding!! That's exactly what you want to do.

As for the pips, the way you get the mind blowing profits (without getting slaughtered) is to first nail down AND perfect a working system (which you are now refining) and second, once your system consistently produces pips, simply multiply the lots.

Think of it this way: if you make 60 pips profit on a standard lot, that equates to $600 (assuming the trade involves GBP/USD). Once you've perfected your system to the point where at least 8 of 10 times you pretty much know you're getting close to 60 pips, you simply multiply the number of lots. So the same effort it took to make $600, if you had 3 standard lots would yield $1,800.

When your system produces the results you seek, remain calm, thankful and don't get over-confident. Trades can and do go against even the best - like the 16 large I donated last week. But because my system works more often than not, I wasn't concerned about recouping that money. And when you do experience a loss, fear not only believe; remember to keep a positive mindset and consider it
a Learning Opportunity - See Success!!

As to your question regarding profit ratios, because I'm using multiple standard lots, I no longer use the standard of pip limit vs stop loss as a ratio. Probably could do it that way but I try to keep things simple so I use dollars: how much did I risk versus how much I earned. So if I risk $45,000 (actual dollars) in a trade and earn $35,000 profit, to me that's roughly a 75% profit with my account increasing to $80,000. Makes sense to me.

Just information; not a recommendation.
  • #238
  • Jul 24, 2006 8:30am Jul 24, 2006 8:30am
Carlos,

My apologies mi hermano, on spelling your name wrong. Charge it to my head and not my heart.
  • #239
  • Jul 24, 2006 2:57pm Jul 24, 2006 2:57pm
Money Master,

Thanks for all of your posts, you've really given me quite a few things to think about. I'm a technical analyst at heart and to be honest don't think very much about fundamentalists. But after reading some of your stuff and the " I make more money in 5-8 minutes than most do in a year" comment...dude I like your style..and maybe..just maybe come to the dard side of the force and start bringing fundamental analysis into my bag of tricks.

A couple of questions:

1)how much percentage of capital are you putting up on each trade? What is your risk management philosophy? At the end of the day, it doesn't matter whether you trade on technical analysis, fundamental analysis or whatever, the real key is about managing your bankroll

2) I work, so unfortunately I can't trade the US or Canadian news because I don't have the platform on the computer I work on, and simply put, even if I could, it would just be a baaaaaaaaaad idea. I know most people here are trading the US news...do you or does anyone reading this trade off of Japanese news or British news and what kind of success have you found there...

Keep up the posts! It's nice to have people who do make money share their philosophy....the only way to be a winner..is to learn from one....


The Hun.
  • #240
  • Jul 24, 2006 3:08pm Jul 24, 2006 3:08pm
Quoting MoneyMa$ter
Carlos,

My apologies mi hermano, on spelling your name wrong. Charge it to my head and not my heart.
Just a quick correction on the %s I gave, it is actually the other way around, 1.75% profit, 2.50% loss.

No worries about the name & thanks for the feedback muchacho!

Carlos
0 traders viewing now