Testing this simple strategy - News trading | Forex Factory

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Testing this simple strategy - News trading

  • #1
  • First Post: Edited 12:11pm Aug 29, 2006 11:56am | Edited 12:11pm
Hi, im testing this simple strategy - News trading

1) 15mins before the news release*.
(*atleast forexfactory calender brown colour level news - average impact)

2) Set 30 pips sell and buy away from the close price**.
(**If the news release at 12:00 GMT+0, then look for the 11:45 GMT+0 close price)

3) Set 20 pips Stop Loss.

4) Cancel all order If not trigger within 15 mins.



Please Give suggesttion. thanks!!
  • #2
  • Aug 29, 2006 12:00pm Aug 29, 2006 12:00pm
5) Cancell All Orders if not Triggered by 12:15 GMT+0
  • #3
  • Edited 3:23pm Aug 29, 2006 3:13pm | Edited 3:23pm
Quoting thiefnight
2) Set 30 pips sell and buy away from the close price**.
Hi ,

it seems to me that your stops (buy)(sell) orders are too far away from the price and you could end up in the wrong direction.

better to keep your pips tighter, i suggest to try setting 15 pips away up or down.

thanks
forexer
I always knew that someday I would make it big
  • #4
  • Aug 29, 2006 3:21pm Aug 29, 2006 3:21pm
Quoting thiefnight

4) Cancel all order If not trigger within 15 mins.
Perhaps that is the way you want it but it is not what I suggested.

A small exercise in being definative in Trade System Logic.
  • #5
  • Aug 29, 2006 3:26pm Aug 29, 2006 3:26pm
Quoting thiefnight
Please Give suggesttion. thanks!!
my suggestion, dont trade this with real money
Relax and be happy.
  • #6
  • Aug 29, 2006 3:29pm Aug 29, 2006 3:29pm
I have seen eurusd on NFP spike 40pips up from "before news", then 40pips down from "before news" and then again 150 pips up. with this strategy in these situations you will loose twice within 15 minutes.
  • #7
  • Aug 29, 2006 3:39pm Aug 29, 2006 3:39pm
To trade the news this way, you should put your buy and sell orders 2 or 1 or less than 1 minute before the news, 5 to 10 pips away from the current price ...
  • #8
  • Aug 30, 2006 9:54am Aug 30, 2006 9:54am
Quoting thiefnight
Hi, im testing this simple strategy - News trading

1) 15mins before the news release*.
(*atleast forexfactory calender brown colour level news - average impact)

2) Set 30 pips sell and buy away from the close price**.
(**If the news release at 12:00 GMT+0, then look for the 11:45 GMT+0 close price)

3) Set 20 pips Stop Loss.

4) Cancel all order If not trigger within 15 mins.



Please Give suggesttion. thanks!!
Hello theifnight,

We would all love if it were that simple!!!

Each report is different
Each market condition coming in to the report can be different
Each broker privides a different environment during data.
ALL of these things go into my decisions. I offer to you that there is no ONE correct set up.
Profit is where readiness meets Opportunity
  • #9
  • Aug 30, 2006 10:09am Aug 30, 2006 10:09am
How long have you been in forex?. Trading with news never work because you don't trade directly with the market, you are trading with the broker, similar to casino, they make sure you lose by delaying your order or not execute at all (95/100 in this market are losers). That is the reason why you only trade 1/2 hr after the news, best is to wait for the retracement.
  • #10
  • Aug 30, 2006 2:05pm Aug 30, 2006 2:05pm
Quoting dactek
How long have you been in forex?. Trading with news never work because you don't trade directly with the market, you are trading with the broker, similar to casino, they make sure you lose by delaying your order or not execute at all (95/100 in this market are losers). That is the reason why you only trade 1/2 hr after the news, best is to wait for the retracement.
L O L, Killing me.

I think you are in the wrong Forum Room dactek.

This is the NEWS TRADING ROOM.
Profit is where readiness meets Opportunity
  • #11
  • Aug 30, 2006 3:33pm Aug 30, 2006 3:33pm
Same here, LOL all the way to the bank
  • #12
  • Aug 30, 2006 3:56pm Aug 30, 2006 3:56pm
Pretty brassy first post there dactek.
I noticed you joined the day this thread started.

Are you a Borker in disguise trying to put a halt to the stuff you can't,as yet, control?
  • #13
  • Aug 30, 2006 4:53pm Aug 30, 2006 4:53pm
It's great reading all of your success stories on News Trading, but so far I have had a nightmare! First broker froze me out, 2nd caused so much slippage and widened the spread SO MUCH it wasn't worth taking and 3rd hit my stop even though the market never went anyway near my SL!! Grrrrrr........ I feel like paying them a visit, widening their 'spreads' and removing their 'pips' with a blunt instrument - if you know what I mean!!

Any advice on a decent broker would be gratefully received!
  • #14
  • Aug 30, 2006 4:54pm Aug 30, 2006 4:54pm
Quoting forexprincess
It's great reading all of your success stories on News Trading, but so far I have had a nightmare! First broker froze me out, 2nd caused so much slippage and widened the spread SO MUCH it wasn't worth taking and 3rd hit my stop even though the market never went anyway near my SL!! Grrrrrr........ I feel like paying them a visit, widening their 'spreads' and removing their 'pips' with a blunt instrument - if you know what I mean!!

Any advice on a decent broker would be gratefully received!
Check out the Broker discussion Forum.
Merlin has made it simple to research that well covered topic.
Profit is where readiness meets Opportunity
  • #15
  • Aug 30, 2006 4:58pm Aug 30, 2006 4:58pm
Thanks FX
  • #16
  • Aug 31, 2006 11:36am Aug 31, 2006 11:36am
Thanks All, I will back test this and few strategy suggested, demo for 1 month and post my result.
  • #17
  • Sep 3, 2006 8:12pm Sep 3, 2006 8:12pm
Quoting thiefnight
"Hi, im testing this simple strategy - News trading

1) 15mins before the news release*.
(*atleast forexfactory calender brown colour level news - average impact)

2) Set 30 pips sell and buy away from the close price**.
(**If the news release at 12:00 GMT+0, then look for the 11:45 GMT+0 close price)

3) Set 20 pips Stop Loss.

4) Cancel all order If not trigger within 15 mins.



Please Give suggesttion. thanks!!"
Just a couple of things to think about. 15 minutes before hand will get you in to early sometimes. Be careful with this strategy.

an entry stop 30 pips away might help you avoid the above, but it widens the market to 60 pips. You will only capture huge moves, and leave profit on the table.

some times when you get whipsawed, you lose on the one trade and more than make up for it in the other direction, but this should be carefully managed and not just done with a market that you are setting as wide as 60 pips.

Just some starting suggestions, but let us know how your backtesting goes.

DC
"There is MORE Happiness in giving than receiving"
  • #18
  • Sep 6, 2006 10:17am Sep 6, 2006 10:17am
Quoting forexprincess
It's great reading all of your success stories on News Trading, but so far I have had a nightmare! First broker froze me out, 2nd caused so much slippage and widened the spread SO MUCH it wasn't worth taking and 3rd hit my stop even though the market never went anyway near my SL!! Grrrrrr........ I feel like paying them a visit, widening their 'spreads' and removing their 'pips' with a blunt instrument - if you know what I mean!!

Any advice on a decent broker would be gratefully received!

Some brokers really hate news trader. Anyone know why ?
  • #19
  • Sep 13, 2006 5:04pm Sep 13, 2006 5:04pm
Quoting Jayguan
Some brokers really hate news trader. Anyone know why ?
http://www.forexfactory.com/forexfor...ead.php?t=7484

They dont make it easy for a reason mate.
  • #20
  • Sep 15, 2006 5:01am Sep 15, 2006 5:01am
Quoting branac
To trade the news this way, you should put your buy and sell orders 2 or 1 or less than 1 minute before the news, 5 to 10 pips away from the current price ...
enought time?
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