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My news trading experiment

  • #1
  • First Post: Aug 31, 2006 1:47pm Aug 31, 2006 1:47pm
I've been trading only news events for the last two months in a mini account and I'm ready to start a thread here so I can have a nice place to put a log and so I can take advantage of the community's brain power and trading knowledge to fill in any gaps I might have in my strategy.

Sorry this initial post isn't all that forthcoming, I'm home from work for a quick bite to eat and I figure I better start the thread or I never will.

I did take one trade this morning on the US news jumble at 8:30am ET before I headed out to the office.

USD/JPY: short 117.10 (8:02am ET), TP 116.94 +16

Hope everyone did well, especially the nice HUGE reversal after I left for work.

Mike
Therefore what??
  • #2
  • Sep 1, 2006 12:24pm Sep 1, 2006 12:24pm
Well you gotta love NFP, it never fails to disappoint. I have a little guessing game with myself on what the jobs number will print at, and I was looking for 117K not bad for being a only off by 11K, much better than ADP.

On to the trades:
I only too one today, again the day job:
I put my limit buy on the GBP/USD at 1.9032, with a stop at 9060 (right above the local high at 7:55am ET) and my TP at 1.900.

Here is the reason I did that: what I do is look for on the 5 min chart, a close below the 14WMA and I look for the 240EMA and the 50EMA for direction in the market. Basically the 240 & 50 were sitting right on top of each other which means to me that the guys that are trading the higher time frames are in agreement in their assessment of price. Also I look at the 14CCI, it was at extreme and we had divergence from the previous two local highes. When the news candle couldn't close above the 14WMA I got up and went and got ready for work and by the time I came back the trade was closed.

This weekend I'll try and figure out my new screen capture program and post some charts.

Hope y'all got some good pips today!

Oh, one last thing, I've noticed and I need to do some more research on this but national holidays in either the UK or the US produce some great uni-directional movements. As last weeks UK holiday showed. Hope to see some of you around on Monday.

Have a great weekend,

Mike
Therefore what??
  • #3
  • Sep 1, 2006 12:39pm Sep 1, 2006 12:39pm
Quoting MichaelFX
I put my limit buy on the GBP/USD at 1.9032, with a stop at 9060 (right above the local high at 7:55am ET) and my TP at 1.900.
I'm a little confused...

BUY LIMIT? How could you place a buy @ 1.9032 with a Take Profit of 1.9000? Did you mean a SHORT? or did you get confused with between your SL/TP?
  • #4
  • Sep 1, 2006 12:59pm Sep 1, 2006 12:59pm
Good catch Mrmikal!! I meant Limit Sell......Mate I need a weekend.

Mike
Therefore what??
  • #5
  • Sep 1, 2006 1:03pm Sep 1, 2006 1:03pm
Usually I steer clear of big news days but something Merlin said made me re-think.
I thought instead of trying to guess UP or DOWN - how far to straddle - where to put stops - etc, I decided to let it do its thing and then (and I quote) "fade that shit"..........
Set my 1st buy limit at 1.9025 and the 2nd at 1.8965 and the rest is history.
With practice I might even get to like this.....
I realised I tried to guess where the market would hit, rather than waiting and tracking it back up. It worked this time, maybe next time......
Peter
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  • #6
  • Sep 1, 2006 1:08pm Sep 1, 2006 1:08pm
Peter I'm a big fan of the fade, I just need to figure out how to do it while I'm sitting at the office. That I why I go for short trades on the initial direction.

Congrats on the HUGE day for you!!

Mike
Therefore what??
  • #7
  • Sep 1, 2006 1:20pm Sep 1, 2006 1:20pm
Quoting MichaelFX
Peter I'm a big fan of the fade, I just need to figure out how to do it while I'm sitting at the office. That I why I go for short trades on the initial direction.

Congrats on the HUGE day for you!!

Mike
I'm not embarrassed to admit that I was sitting on a cable -40 odd pip trade before today. Went in long 1.9055 on the 30th and been thinking shall I close, shall I hold?
That's the trouble with being a newbie, things always look obvious 20 seconds after you've pulled the trigger.
So I had a good long look at this before I went in, and had a clear insight into what I was trying to achieve. I'll still count myself as lucky this time, but at least I learnt another way of trading the news, whether it's good or bad, time will tell. It just seemed more logical once I'd grasped what merlin was sayin - I can't understand why more people don't do it. Maybe it's the 10 -20 pip quick trade habits they've gotten into.
Still, who am I to judge anyone
Thanks
Peter
  • #8
  • Sep 1, 2006 1:41pm Sep 1, 2006 1:41pm
It went really good with me as I captured +71 pips euro long and +73 pips euro short.
So total:71+73=+144( a complete fibl achieved today )

I will post charts in my journal.


kolachi
  • #9
  • Sep 1, 2006 8:23pm Sep 1, 2006 8:23pm
Quoting kolachi
It went really good with me as I captured +71 pips euro long and +73 pips euro short.
So total:71+73=+144( a complete fibl achieved today )

I will post charts in my journal.


kolachi
congrats!

I had a long in euro$ befor news based on nudging. But my s/l wasn't far enough down to accomidate the movement.

I am usually screwed if I don't get the initial direction right. If I do get it right I take a modest 20-30 pips just incase of reversal.

I was almost going to take a short after retrace but didn't get a close other side of 8 ema to give me the short signal and sat it out.

News seems to do nothing but make me mad and obscure my wave count on low 1 hr time frame.

I hope to find something consistant for news trades. Sounds like you got a good one with your hedging method.

Dave
  • #10
  • Sep 1, 2006 8:31pm Sep 1, 2006 8:31pm
Quoting kolachi
It went really good with me as I captured +71 pips euro long and +73 pips euro short.
So total:71+73=+144( a complete fibl achieved today )

I will post charts in my journal.


kolachi
Beautiful. I caught half that over the NFP and ISM. I'm a bit more conservative on my news trades though...
Mr. Trend
  • #11
  • Sep 2, 2006 1:07am Sep 2, 2006 1:07am
It was an interesting reversal wasn't it! I am from Sydney, Australia. So job numbers come out here at 10:30PM Sydney time. After the Euro data was a little flat I decided to short Euro at 1.2811. Took profit after Jobs data at 1.2774 - really happy with that one
All the forcasts were expecting job numbers to improve, it was only natural I thought when the numbers did show an improvement. However, no need to stick around the trade over the weekend, you never know... so I exited as soon as the trade started to re-trace a bit. Lucky on this one.

Good luck everyone! Happy News Trading.
Big week next week:
1: Canada interest rate decision
2: BOE rate decision. Remember last time BOE hiked when no one expected they would. Should be an interesting trade!

All the best,
reltom
trigger happy trader
  • #12
  • Sep 3, 2006 4:41am Sep 3, 2006 4:41am
Quoting eltom
It was an interesting reversal wasn't it! I am from Sydney, Australia. So job numbers come out here at 10:30PM Sydney time. After the Euro data was a little flat I decided to short Euro at 1.2811. Took profit after Jobs data at 1.2774 - really happy with that one
All the forcasts were expecting job numbers to improve, it was only natural I thought when the numbers did show an improvement. However, no need to stick around the trade over the weekend, you never know... so I exited as soon as the trade started to re-trace a bit. Lucky on this one.

Good luck everyone! Happy News Trading.
Big week next week:
1: Canada interest rate decision
2: BOE rate decision. Remember last time BOE hiked when no one expected they would. Should be an interesting trade!

All the best,
reltom
Hi

I do it the old stradle, 2-3 minutes before the news set buy and sell stop orders at 15 pips away from price with 10 pips SL. This way I was able to recover losses and go into profit.
Cheers
  • #13
  • Last Post: Sep 3, 2006 5:29am Sep 3, 2006 5:29am
Quoting abenfaid
Hi

I do it the old stradle, 2-3 minutes before the news set buy and sell stop orders at 15 pips away from price with 10 pips SL. This way I was able to recover losses and go into profit.
Cheers

Yes, the old stradle! great method. I do something very similar. Unfortunately for me about two weeks ago I set my SL 12 pips away and as the data was being released the sheer volatility reached my SL and I ended up buying into the wrong direction as the data favoured the EUR That was only one bad experience. However, I have had a lot of success with this method also. Last time the BOE raised rates, I used your method and absolutely cleaned up! it was great. Thanks for the reply and best of luck with your trading

eltom
trigger happy trader
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