Brave Heart News Scalping System

Brave Heart System will use pyramiding techniques to scalp multiple pairs on high impact news, trying to increase returns while decreasing the risk.

Pyramiding

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Pyramiding involves adding to profitable positions to take advantage of an instrument that is performing well. It allows for large profits to be made as the position grows. Best of all, it does not have to increase risk if performed properly.

Pyramiding works because we will only ever add to positions that are turning a profit and showing signals of continued strength. These signals could be continued as the price breaks to new highs, or the price fails to retreat to previous lows. Basically, we are taking advantage of trends by adding to our position size with each wave of that trend.

Pyramiding is also beneficial in that risk (in terms of maximum loss) does not have to increase by adding to a profitable existing position. Original and previous additions will all show profit before a new addition is made, which means that any potential losses on newer positions are offset by earlier entries.

It is important to remember that the pyramiding strategy works well in trending markets and will result in greater profits without increasing original risk. In order to prevent increased risk, stops must be continually moved up to recent support levels.

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__ INVESTOPEDIA

High Impact News (HIN)

 

1. Interest rates decisions
2. US Non-Farm Employment Change (NFP)
3. Inflation reports
4. GDP reports
5. Manufacturing PMI
6. ...

Preparation

 

1. Statistical studies on average moves on each HIN per each news curency pair.
2. Spread, Slippage, Re-quotes and Frozen Terminal during HIN per Broker (Live Accounts)

Members who already have such details are welcome to share.

Count me in master

i will take a sit.... and listen carefully master...

We will be interested in the first 15 minutes of the move, preferably less.
We will trade all major crosses of the currency affected by HIN.
If HINs are due on 2 currencies at the same time, we do not trade the cross of the 2 currencies.

hi abokwaik
how trading news time???????????????????????

Ser do you plan to automate this system?

Yes. It will be traded only via a robot.
But the robot will be set manually before each HIN.

Back testing will be useless for such a type of system.
Demo also will not have big value.
However we have to test the system on demo before going live.

oh i see, anyway i have a mql4 source code of forex factory news indicator. Do you need it?

correct me if i'm wrong, does this sytem need to manually activate 30-60 seconds before the HIN? then deleted the pending orders 10 - 30 seconds if there is no spike?

Best regards

The system will based on Grid (fixed or variable size).
Position additions can also be fixed or variable (increasing/decreasing).
We will start with stop orders. If we found that slippage is highly affecting the system profitability, we will switch to limit orders.
Using limit orders will let the system miss few trades, so we will need to compare, the missing trades disadvantage with the slippage disadvantage.

I don't think I will need the news indicator, because the robot will open pending orders before the news.
But post it anyway, maybe we can use it later.

Great new thread Abokwaik!

I'll follow it closely!

Thank you kilion. We'll build it step by step just like a pyramid. But we'll do some analysis first.

Iam interested with news strategy....

Not just only slippage, but other tricky from broker.
My broker lost connection in the last minute of NFP news. Trader cannot do anything if connection lost.
Look picture there is GAP on M1 chart.

Absolutely right.

I referred to this as "Frozen Terminal" in post # 4.

For this reason we need to prepare a broker list for best brokers for news trading.

This is not mine but maybe it could help in the near future

Best regards

Hi Abokwaik,
are you trader or gambler?