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My Simple Rookie News Trading System

  • #1
  • First Post: Feb 28, 2017 7:57pm Feb 28, 2017 7:57pm
The reason why I started this thread, was to see (and learn) if there is anyone else also doing this! And maybe better I was last week thinking about how to make some green pips out of a high-value news release and I think I found something very simple "news system". You can, of course, create an EA for this, but I noticed (for myself) that this works ver well.

Okay here we go on my first thread.

Let say the price is on the EURUSD 1.05646 and there was a high-value news release. I create 2 pending orders. I go long at 1.05750 and short at 1.05530. So one of 2 will be hit, the other one I delete and take my profit between 10-30 pips. That sounds easy, but last time I did it worked for me.

What you think about this and do you think it is profitable if your doing your homework correctly (investigate the power of the news release and look at the past what market does after a news release).

A newbie...
  • #2
  • Mar 1, 2017 12:47am Mar 1, 2017 12:47am
Quoting will4x
I'm a newbie like you but, unlike you, I wouldn't have thought of that on my own! Looks like a good plan, and when I get through typing this out, I'm going to try it myself. As an 'answer' to your last concern, coupling the news events, like the speech of Mr. Trump, with everything else that is going on, seems like good practice to me. I do that as often as I can.
That would indeed a good plan and let me know how and if it works out for you Have a nice trading day.
  • #3
  • Mar 1, 2017 1:57am Mar 1, 2017 1:57am
You still can use the High impact news of today will4x:

GBP -Manufacturing PMI
CAD- BOC Rate Statement
CAD- Overnight Rate
USD- ISM Manufacturing PMI
USD- Crude Oil Inventories
See the calendar here: https://www.forexfactory.com/calendar.php
  • #4
  • Mar 1, 2017 6:53am Mar 1, 2017 6:53am
I have been there. It worked for a while and then I blew up my account. For you to be successful you will have to choose your news well. Even then you stand a chance of your trade triggering and immediately price reverses. And don't forget the high spreads plus slippage during the events.

One event you will have to stay away from is the NFP. In an instant you will have both orders filled and closed in losses at very bad levels. You will have no time to react. Worse still they may trigger before the release of the data as prices swing up and down quickly.
  • #5
  • Mar 1, 2017 8:23am Mar 1, 2017 8:23am
Quoting johNal
I have been there. It worked for a while and then I blew up my account. For you to be successful you will have to choose your news well. Even then you stand a chance of your trade triggering and immediately price reverses. And don't forget the high spreads plus slippage during the events. One event you will have to stay away from is the NFP. In an instant you will have both orders filled and closed in losses at very bad levels. You will have no time to react. Worse still they may trigger before the release of the data as prices swing up and down...
Thanks for the input and explanation..especially about the NFP! I can work with this. I will try to be very specific which news I'm going to use for trading!
  • #6
  • Mar 1, 2017 8:54am Mar 1, 2017 8:54am
I was thinking for exactly the same strategy. Will follow this thread to see how it would work for you.
  • #7
  • Mar 1, 2017 1:04pm Mar 1, 2017 1:04pm
Quoting Quushey
I was thinking for exactly the same strategy. Will follow this thread to see how it would work for you.
Maybe you can also try it out on your demo account? So can we complement each other up with experience and knowledge
  • #8
  • Mar 1, 2017 4:19pm Mar 1, 2017 4:19pm
individual news releases don't hold weight on their own unless it's an unexpected number against an important area like inflation. i don't suggest anyone tries to trade news events without knowing the bigger fundamental picture across multiple economies.
  • #9
  • Mar 2, 2017 2:22am Mar 2, 2017 2:22am
Quoting EcoTrader
individual news releases don't hold weight on their own unless it's an unexpected number against an important area like inflation. i don't suggest anyone tries to trade news events without knowing the bigger fundamental picture across multiple economies.
That's true and thanks for the input, but what I meant was to trade on 1 candlestick after a high impact news release. What do you think about that?
  • #10
  • Mar 2, 2017 2:47am Mar 2, 2017 2:47am
Quoting fxforexnew
{quote} That's true and thanks for the input, but what I meant was to trade on 1 candlestick after a high impact news release. What do you think about that?
I think its no different to flipping a coin. There is far too little information in a candle stick or whatever technical instrument used to gain any advantage during news releases. I guarantee you will have lucky trades as much as i guarantee you will end up giving up through too many losses because the bits that matter is unavailable in your decision making process.
  • #11
  • Mar 2, 2017 3:34am Mar 2, 2017 3:34am
I agree with the above sentiment, leaving it to a 50/50 guess as too weather or not gain pips in the process is to risky. There's too many variables like it was also was mentioned about slippage and dramatic jumps in volume around events that makes it too risky for my personal liking, but trading is different to every person that's why we all are doing what we do, too learn more and become profitable
It's gotta be the shoe's!!!
  • #12
  • Mar 2, 2017 4:43am Mar 2, 2017 4:43am
Quoting fxforexnew
{quote} Maybe you can also try it out on your demo account? So can we complement each other up with experience and knowledge
It will work out beautifully on demo because for most brokers, things work differently on demo compared to real account.

Actually my main trading strategy involves trading red news. It has worked for me well for two years. But I have refined my approach after watching price action during red news for some time. The approach suggested here will not hold out in the long run.
  • #13
  • Mar 2, 2017 4:56am Mar 2, 2017 4:56am
Quoting johNal
{quote} It will work out beautifully on demo because for most brokers, things work differently on demo compared to real account. Actually my main trading strategy involves trading red news. It has worked for me well for two years. But I have refined my approach after watching price action during red news for some time. The approach suggested here will not hold out in the long run.
Thank you johNal for the input. So this will not hold out for the long run you saying, but how can you combine red news with price action? And when I have some candlestick pattern knowledge, will that help with trading on red news?
  • #14
  • Mar 2, 2017 9:32am Mar 2, 2017 9:32am
Quoting johNal
I have been there. It worked for a while and then I blew up my account. For you to be successful you will have to choose your news well. Even then you stand a chance of your trade triggering and immediately price reverses. And don't forget the high spreads plus slippage during the events. One event you will have to stay away from is the NFP. In an instant you will have both orders filled and closed in losses at very bad levels. You will have no time to react. Worse still they may trigger before the release of the data as prices swing up and down...
Totally, agree with johNal. Even if such strategy works for a while, it definitely will end up blowing your account. Since you are a rookie, I would suggest you to avoid news trading till you gain some more experience and master your skills.
  • #15
  • Last Post: Mar 2, 2017 9:33am Mar 2, 2017 9:33am
Quoting UlliC
{quote} Totally, agree with johNal. Even if such strategy works for a while, it definitely will end up blowing your account. Since you are a rookie, I would suggest you to avoid news trading till you gain some more experience and master your skills.
Okay and thanks for the great advice
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