Do you actually avoid news hours?

I'm just backtesting one of my favorite strategy and news hours spoils many good trades. Is it really worth to stay away from market during news hours?

Edit:
Looking at the replies, I think I may be wrong somewhere. I don't see any great moves during the news hours as you say. Am I seeing the useless news then?

I'm checking the news hours from the 'Calender' link on the top of this website. How do you check the news? Is this the way you follow? The Calender lists many news and a currency name before each news. That means, we'll need to avoid that pair alone during that news hours. Am I correct?

For example, my broker time right now is 3:38. The upcoming news is as follows:

"4:30 JPY Revised Industrial Production m/m"

Does this mean We avoid trading any currency pair with JPY between 3:30 and 5:30? But we are good to go with other currency pairs right?

Am I correct in understanding the 'avoiding news hours' phrase?

Yes it is really worth to stay away from the news hours in your normal strategy because it is where most of the fake signals will be generated. It is better to have a separate news trading strategy.

there was a time when I avoided the news..... now can't wait for it.... and also, have long since lost any interest in trying to determine if the news will be good or bad and how it will effect my positions....

now days I just want news and the after effects of it..... the end result is I get out at a far better price in a much shorter period of time, or I get in at a far better price in the same period of time.....

however, I have coded quite a few ea's for people that read forexfactory's calendar just to avoid all trades for a period of time both before and after news..... many traders do clearly avoid news.....h

Hey Bhoopalan,

It really depends. If your trade strategy incorporates trading into news but is hindered by news announcements (because of tight stops or small pip targets), then you may need to make some adjustments. There are a couple ways you may consider approaching this:

1. Modify/find a strategy which enables you to trade with wider stops and still remains profitable.
2. Find a way to trade the news.
3. Stay away from the news.

After years of trading, I honestly think the #2 approach is a very difficult thing to do. There aren't any professional traders I know of who are consistently profitable by trading news announcements blow-by-blow. Granted, long term impact news is a different story.


SerenityFX

((Not Trading Around News Time ))
– Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the prices changes reflect serious currency flow (compared to quiet times when Bank traders rule the market with their customer order flow.
( jimmy young )

salaam

Looking at the replies, I think I may be wrong somewhere. I don't see any great moves during the news hours as you say. Am I seeing the useless news then?

I'm checking the news hours from the 'Calender' link on the top of this website. How do you check the news? Is this the way you follow? The Calender lists many news and a currency name before each news. That means, we'll need to avoid that pair alone during that news hours. Am I correct?

For example, my broker time right now is 3:38. The upcoming news is as follows:

"4:30 JPY Revised Industrial Production m/m"

Does this mean We avoid trading any currency pair with JPY between 3:30 and 5:30? Am I correct in understanding the 'avoiding news hours' phrase?

Thank you for all your helpful posts.

I believed you have answered your own question. If you tested and found that your strategy is not suitable during news releases, then don't use it during those times!

That is the purpose of testing - to find out what works and what doesn't. And then of course to do what works for you. You are going to take many many trades in your trading lifetime, do not worry about missing out on trades. There will always be another waiting for you.

No, what I actually meant is, I backtested my strategy and I see some good trade. However, that was news hour when checked with forexfactory news page.

My doubt is, whether my strategy work even during news hours? (BTW, I just use combinations of indicators like most.) I see to that the trades don't last more than 1 or 2 hours quite often. May be due to this my strategy isn't affected by news? Any idea is greatly appreciated.

yes i do avoid news time close my trades before them or
if i decide to trade it i will trade it with a certain way .
i have closed all my trades for now waiting for news coming out after about an hour

there was a time news used to produce megapip moves....nowadays there's barely a blip on most news.I only avoid high impact news and trade afterwards.

Please help me if I understand this correct. I'm unable to search anything related to this online.

my broker time at the time of the first post is 3:38. So the upcoming news was as follows:

"4:30 JPY Revised Industrial Production m/m"

Does this mean We avoid trading any currency pair with JPY between 3:30 AM and 5:30 AM? But we are good to go with other currency pairs right?

Am I correct in understanding the 'avoiding news hours' phrase?

It all depends. Beware of having your stops too close when news are coming up, however. Are there several news involving JPY coming up at the same time? If no, I usually ignore it. I'm not a big fan of randomess and noise, and thus not a big fan of news.

Thanks for your reply. Do you actually mean that trading during news time would still be profitable if we keep a tight stoploss so that the loss wouldn't be too risky? I believe that's what working in my strategy. I keep low stop loss and low take profit too

That must be a valid point. Please tell me if I understand you correct:

If there are many medium and high impacted news related to JPY, you may not trade at that time in JPY but you would still trade in other currencies, wouldn't you?

Also, may I know your experience and win ratio as you seem a new member in this website? No offense.

Dadas,

What SL and TP do you recommend for each TF (daytrading, scalping, ect)?

hi all, i just joined here.
good question but it depends on your strategy look at the link below, news at the most effect according to these days market condition can cause about 140 pips movement even in a 1 min chart that is lowest time frame that lots of systems offer to you, i cant confirm its a one tick change or a gap so what that means :
it means that if you put a slop loss to manage your risk on a position at 20 pips, after this gap or big tick it wont fill at the desired price and even you cannot blame your broker, actually no one can guarantee that other side of your position will be filled at desired price, it means your risk of losing money is about 140 pip not your stop loss at the worst case i mean.
but don't worry there aren't much news that can affect trend this much, i just consider news from USA and only some of them, the others doesn't affect trend that much.
otherwise if you can hear news before its influence on the trend let me know,
check this link : http://www.babypips.com/school/undergraduate/freshman-year/trading-the-news/which-reports-are-trade-worthy.html

I think it really depends on which strategy you trade. If you trade long term and fundementally and news is not a problem. However, if your strategy is scalping , you should avoid the news.

When I do trading on fundamental I do not avoid news hours , I wait for news not trade just after news release. I had my own plan and strategy with it I can manage trading easily even on news trading. I do trading after news to see either market is going according to news or not .

I do not avoid trading important news. These news releases give you an insight into the health of the economy and in turn the expectations of market participants. Truthfully the majority of the news can be ignored. The trick is to focus on the ones the market is focussing on.

advoiding important news help me advoid re-quoted orders too. but it's not very easy to detect when the news is released.

Here’s a list of the most volatile hours for forex trading for each of the 8 major currencies:

1. Australian Dollar: 01:30 GMT. This is the time when most indicators are published. 04:30 also sees some indicators.
2. Swiss Franc: 07:15 GMT. While this is the strongest hour, publications happen many times at 7:00 or at 7:30, aroung the major hour.
3. British Pound: 8:30 GMT. Here, the timing is quite strict. Almost all the indicators are published at this hour. Only few indicators are not exactly at this time. 23:00 GMT (midnight in Britain) is also notable for some releases, but the major ones are at 8:30 GMT.
4. Euro: 9:00 GMT. European indicators often come from Germany and France, and therefore the hours vary. Indicators start as early as 6:00 and end no later than 10:00.
5. Canadian Dollar: 12:30 GMT. Similar to its neighbor in the south, Canada releases many figures at this time. Note that the releases vary in Canada: some indicators are released as early as 11:00 GMT, and as late as 14:00 GMT.
6. US Dollar: 12:30 GMT. Most indicators, including the king – Non-Farm Payrolls are published at this time, one hour before the stock exchange opens. More than a few publications are made at 14:00 GMT, an hour and a half later. These 90 minutes are very volatile. Trading volume is very high. Banks in New York, London and all across Europe are trading at this time.
7. New Zealand Dollar: 22:45 GMT. In New Zealand, this is the most popular hour. Another hour that concentrates data is 21:00 GMT.
8. Japanese Yen: 23:50 GMT. This is very significant. Almost all the indicators are published at this time. Only a small group of releases are made at different times, with 23:30 being the most frequent.