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Most suitable broker for news trading

  • #21
  • Nov 2, 2016 8:37am Nov 2, 2016 8:37am
Quoting CoalF
If this is exactly what should have happened with this trade, then is news trading not viable? Or did I just choose the wrong event and the wrong time? I've read elsewhere that 30 pips (300 points) is not acceptable for slippage, were they wrong? Another thing is, this kind of slippage never happened with my demo account, not even close. If it had, I wouldn't have bothered trying it live. Thanks for your help.

30 pips slippage is totally normal thing when you use stops orders during high impact news, especially during hours with worst liquidity (of course if news causes 30 pips move or more). You can get easily 100 pips slippage if first tick equals 100 pips. During brexit session you could get 500 pips slippage! Remember that your order will be executed when all trades made by EA's (that are much faster than your server) find liquidity. Actually, you should always wait for first tick and then trade, because you will almost all the time get large slippage. Stop loss order shouldn't be set higher than the lowest point of first tick and contrary for sell orders. It's much better to wait one minute and then make a trade or not.

Remember that you can find many bullshit statements in the internet, for example this 30 pips unacceptable slippage First tick is your minimum slippage! Demo account usually doesn't have slippage at all, even if you see 1000 pips move, because your order doesn't make any impact on market, because it's virtual money

However, brokers can easily cheat with slippages, especially during high impact news. What broker did you use?
  • #22
  • Nov 2, 2016 8:43am Nov 2, 2016 8:43am
News trading is something very complicated thing because many brokers have sort of rules and policy that you may not be able to spot in first go and that’s why we need to be checking customer service as well. I had terrible time with IFX during news with their 10% profit policy. However, I am right now with Octafx where I do news trading smoothly without interference at all and of course, I am able to get profits (if I make it).
  • #23
  • Nov 2, 2016 9:23am Nov 2, 2016 9:23am
Quoting insomniawawa
{quote} 30 pips slippage is totally normal thing when you use stops orders during high impact news, especially during hours with worst liquidity (of course if news causes 30 pips move or more). You can get easily 100 pips slippage if first tick equals 100 pips. During brexit session you could get 500 pips slippage! Remember that your order will be executed when all trades made by EA's (that are much faster than your server) find liquidity. Actually, you should always wait for first tick and then trade, because you will almost all the time get large...
Thanks insomniawawa. I just want to make sure I understand a couple of things correctly:

 

  1. I should not use buy and sell stops because they will never be executed where I put them?
  2. I should wait for at least the first tick to place a market order? With 100ms server time plus human reaction time I'm looking at around 500ms after the event. Is that a viable strategy? It seems a bit dangerous to me.
  3. The better strategy to trade news events is to wait until the 2nd minute?


I cannot name my broker. I assume it's because I am new.

  • #24
  • Edited 10:47am Nov 2, 2016 10:23am | Edited 10:47am
Quoting CoalF
{quote} Thanks insomniawawa. I just want to make sure I understand a couple of things correctly: I should not use buy and sell stops because they will never be executed where I put them? I should wait for at least the first tick to place a market order? With 100ms server time plus human reaction time I'm looking at around 500ms after the event. Is that a viable strategy? It seems a bit dangerous to me. The better strategy to trade news events is to wait until the 2nd minute? I cannot name my broker. I assume it's because I am new.

- Stop orders usually are executed with minimal slippage during "normal" market conditions which means there's no important news, monetary policy members speeches and unexpected events like rumors, earthquakes, flash crash (usually made by "fat finger" mistake) or central banks interventions. For example I usually trade on 5 minute interval (sometimes when market is very fast 1M interval) during London session. I avoid all dangerous planned red news and events and I have never had slippage bigger than 5 pips for more than 5 years (usually it's 0-0,5 pip, sometimes 1 pip) . If there's news I wait 1 minute and decide if there sense to trade on 1M chart or wait for 5M close. What's important there's always enough liquidity, because I don't trade more than 20 lots at once.

- It's not good strategy to trade after first tick after news release, but slippage will be lesser. Remember that market moves in very chaotic way in first minute after release, especially if news is very important and data isn't much better/worse than forecast. That's why you were stopped out. If there's good price action (style of trading you should learn) you can trade pretty safe after first minute. Minimum stop loss must be set below or above this 1M candle. However, if you are new in trading better train on bigger interval like 5M or even 15M. News trading is much harder at the beginning than trading in normal conditions.

- I ask about broker name not type
  • #25
  • Nov 5, 2016 8:57am Nov 5, 2016 8:57am
Tickmill should fit the bill. They are very good during high volatility. Here is my account with them http://www.myfxbook.com/members/wood...l-real/1757067
  • #26
  • Nov 12, 2016 7:12pm Nov 12, 2016 7:12pm
Tickmill too has a lot of slippage, sometimes I experienced up to 11 pips. And I was using scalping EA.
  • #27
  • Nov 17, 2016 12:29pm Nov 17, 2016 12:29pm
Quoting yan7181
Tickmill too has a lot of slippage, sometimes I experienced up to 11 pips. And I was using scalping EA.

What's your ping with them? I have 5ms using VPS if not trading on news slippage is rare.
  • #28
  • Nov 17, 2016 8:13pm Nov 17, 2016 8:13pm
same, i was using 5ms vps, was making profit. but after i made withdrawal, the slippage comes in and start to deplete my account.
  • #29
  • Nov 17, 2016 8:19pm Nov 17, 2016 8:19pm
I emailed them and try to understand. And the below is what they reply me.


Hello,

We understand your concern, however you are using very popular strategy. The same EA/Signal is used by a lot of traders, it mean that thousand of orders and the volume over 3500-3600 lots is sent to our liquidity providers each time. There are also others brokers, even larger than Tickmill, using the same liquidity providers. It mean in the same time thousands of lots are sent to a market. In such case even if you trade 1 lot a slippage or a huge delay can happen, as your order is in queue and will be executed only when there will be a counter party. As everyday more and more people start to use the same strategy, the result will be worse and worse as there will be not enough liquidity on the market.

--
Kind regards,

Peter
Account Executive
Tickmill Ltd
www.tickmill.com
  • #30
  • Nov 24, 2016 2:01am Nov 24, 2016 2:01am
Quoting yan7181
I emailed them and try to understand. And the below is what they reply me. Hello, We understand your concern, however you are using very popular strategy. The same EA/Signal is used by a lot of traders, it mean that thousand of orders and the volume over 3500-3600 lots is sent to our liquidity providers each time. There are also others brokers, even larger than Tickmill, using the same liquidity providers. It mean in the same time thousands of lots are sent to a market. In such case even if you trade 1 lot a slippage or a huge delay can happen,...
What is the lot size are you trading?
And the second question: Can you share the name of that "popular strategy"? Maybe in PM
  • #31
  • Nov 24, 2016 3:56am Nov 24, 2016 3:56am
I have no idea how to PM, been trying to find such feature in the forum but fail to do so. The EA I am using is algotradesoft, u can Google it. But it is not profitable anymore as the brokers are aware of it now.
  • #32
  • Nov 24, 2016 5:33am Nov 24, 2016 5:33am
Answer is simple : not a MT4 broker
  • #33
  • Nov 24, 2016 5:43am Nov 24, 2016 5:43am
Quoting yan7181
Tickmill too has a lot of slippage, sometimes I experienced up to 11 pips. And I was using scalping EA.
this is normal during news especially news with high impact, isn't ?
Some brokers offer 'fixed spread' but in my point of view this is perhaps 'bucket shop brokerage'
Happy Trading
  • #34
  • Nov 26, 2016 1:51pm Nov 26, 2016 1:51pm
Quoting rockthepips
Answer is simple : not a MT4 broker
That’s absolutely correct. If you are long term trader then forget everything just look at trustworthy broker, but for scalpers or news traders, it’s must to have ECN broker. However, the answer is not simple because most broker claims to be ECN but not everyone is really that. I am with Octafx which too claims to be ECN and fair to them, I do believe they are and I am operate with cTrader platform which too is especially for ECN trading and is ideal for news trading. NFP is ahead this week, so maybe try them out on demo first and see how it goes.
  • #35
  • Feb 7, 2017 12:12pm Feb 7, 2017 12:12pm
Quoting yan7181
I have no idea how to PM, been trying to find such feature in the forum but fail to do so. The EA I am using is algotradesoft, u can Google it. But it is not profitable anymore as the brokers are aware of it now.
did you find a solution for a broker useing AlgoTradeSoft?
  • #36
  • Feb 8, 2017 2:11pm Feb 8, 2017 2:11pm
Quoting shrike
I dont know, just send them an email and ask.
He can even use the available online support. Every broker has that I suppose, and I believe that is even faster and interactive.
  • #37
  • Feb 9, 2017 4:16am Feb 9, 2017 4:16am
One should always stay away from the brokers by means of their less liquidity and do not start liking their promoted spread which can be quite valueless. Many brokers in the industry offer a lot of information particularly for the ones who are interested in news trading. Just to attract them!

You can start with any broker for a start and find the best possible services that they offer in respect to news trading. If you think that the broker that you have chosen it quite bad in spreads during news hours. You can follow a better broker.
  • #38
  • Feb 9, 2017 6:08am Feb 9, 2017 6:08am
Quoting Forexia
{quote} The problem with news trading is that, the normal risk/reward ratio goes out of the door and there is no way to control it because 1) there is no way to predict how much loss can potentially result from an unfavourable news or economic number. You think you can have a 1:5 risk/reward ratio but when it's a really bad number, you could be facing 2:5 or 5:5 or worse 10:5 risk/reward ratio with the last one being the loss completely overwhelming winning and there is no way to predict or forecast that and every single news and economic number...
  • #39
  • Edited 8:42pm Feb 10, 2017 2:11am | Edited 8:42pm
Quoting MoneyZilla
Forexia, very well put! I just want to add something else on the top of that. Do trade AFTER the news. Immediately when the spread cools off. Usually 1-2 mins after the release. Some nice remains are there for the small folks...
That would have to depend on how the market chooses to react to the news. It's NOT uncommon at all for the market to go completely flat with no movement at all right after the news release if the market feels that there is no incentive to push the currency to any direction after the big move during the news release then in that way even though you might not lose big with the trade you won't be able to profit much either. What's also very common is what Dual has observed with the kiwi pair after that rate decision news is that the market yo-yo's in HUGE strides in both direction several times after the news taking out your stop but then reverses itself immediately and rallies in the opposite direction without you on board or worse yet, if you have stop & reverse set up, it will take out both of your stops in either directions and since you go into the opposite trades after the stop, you end up with double the losses, double the heartache. Trust me, I have seen it all and news trading is the ugliest part of forex trading and the best and fastest way to blow your account especially if you have small capital and trades on large margin. Just look at that SNB crisis 2 years ago, it bankrupted TWO brokerage firms and blew up countless traders' account worldwide and probably their marriages too if they were married.

Is it really worth it to watch all the profit earned over several months being destroyed in the matter of seconds even after the news? Especially after the news you have less of an idea where the market will go. The market may continue to trade towards the same direction of the news or if it thinks the news is already priced in enough, it might even reverse itself and go the opposite direction so it furthers your loss.
Make your losses in demo. Earn your profits live.
  • #40
  • Edited 8:44pm Feb 10, 2017 2:42am | Edited 8:44pm
Quoting insomniawawa
{quote} 30 pips slippage is totally normal thing when you use stops orders during high impact news, especially during hours with worst liquidity (of course if news causes 30 pips move or more). You can get easily 100 pips slippage if first tick equals 100 pips. During brexit session you could get 500 pips slippage! Remember that your order will be executed when all trades made by EA's (that are much faster than your server) find liquidity. Actually, you should always wait for first tick and then trade, because you will almost all the time get large...
The thing is slippages should go both ways. It's understandable that slippages happen during high impact news and stop orders may get executed tens of pips away from the stop price BUT when you happen to be on the right side of the market, you should also get positive slippages in your favour tens of pips away from your limit or stop orders. Remember it's a zero-sum game; if your stop orders were executed tens of pips away from your stop price, that means someone somewhere should be getting their stops or limit orders executed tens of pips better than their stop or limit price. The ONLY broker that I have EVER experienced positive slippages even during news time was Interactive Broker. And their widened spread only lasts about 5 seconds, I am NOT joking, during news time no matter how high impact the news is. And I agree if you REALLY want to trade news, you need to find an ECN broker like Interactive Broker where the broker is REALLY risk-neutral. So if you find you are ALWAYS getting just negative slippages and NEVER positive slippages, do two things:

1) Withdraw ALL your money

2) RUN!!!!
Make your losses in demo. Earn your profits live.
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