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[jesse_breaker]

It seems that the market is it's most crazy during news releases, which I think is the best time to make money (and lose money).

Here is what I am thinking of doing :

place a buy stop and a sell stop 15 pips away from the price @ 8:29 AM EST (1 min before news) with a 34 pip stop loss. So if the price was 1.8000, I would put a buy stop @ 1.8015 and a stop loss of 1.7966 and a sell stop @ 1.8034. Each position would have a 100 pip take profit.

I would close all position by 8:50 AM EST.

Comments? Suggestions?

[jesse_breaker]

Sorry I just realized that my subject line may not be clear after I just reread the message body. I am thinking that if I make a news robot with that criteria, it would remove much of the emotion during this time, and any sort of typos that I may make,etc...

Concerned more however about the strategy of the pip band and stoploss and take profit -> This is what I am looking for feedback on

[TrendlineBreak]

Hi,

This type of news straddle was very popular, and generally very profitable until a few months ago.

It is now becoming a lot harder since the major firms have wised up to it.

Problems for the trader now are :

1. Some firms widen their normal spread around important news anouncements.

2. Most firms now do not guarantee stop losses, if their is a major move related to a news release you generally get "the next available price"

i.e. if you have an active sell trade for instance with a stop at 18000 and the price goes against you, available prices may be 17990 then 18050 in an extreme case, so your stop would be filled at 18050, not 18000.

3. There tends to be quite a lot of "stop hunting" in the minutes or minute before the release, prices will jump around, down 30 pips, up 30 pips, sometimes getting you into and stopping you out of a trade even before the news is released.


Not saying it cannot still be profitable but you have to be very careful with your stops etc, I used to do these type of trades all the time but now I wait for the release, give the market 15-30 minutes to settle back down and then try to profit from any good follow through or obvious retracement.

[jesse_breaker]

Thanks Trend. I use interbankfx and they say they *do* allow placing stops anytime during the news or before the news, but I never asked them about slippage,etc..

Hmmm... you have got me thinking.

[TrendlineBreak]

Best and worst release is obviously US and Canadian NFP.

In the past when I was straddling the news the best ones I found were:

US Trade Balance
US GDP
US Chicago NAPM
US Consumer Confidence
US Retail sales (sometimes)
US Consumer Price Index
US Industrial Production
US Durable Goods

This isn't a full list, but these are the ones that tend to give the nicest moves especially if the numbers are out of whack with the consensus.

Obviously they don't always move, and they don't always only move one way, you need to have a feel for the macro picture of what the economy is doing and what people are finding important at the moment.

I tend to look at the daily Bank reports on news days, especially mellon which I find very accurate.

Forget about things like construction spending, housing starts, home sales.
personal income, weelky initial jobless, factory orders, chain store sales, and all the other smaller releases, they just do not have the power to move the markets as a general rule.

[Baruch]

Originally posted by jesse_breaker
Sorry I just realized that my subject line may not be clear after I just reread the message body. I am thinking that if I make a news robot with that criteria, it would remove much of the emotion during this time, and any sort of typos that I may make,etc...

Concerned more however about the strategy of the pip band and stoploss and take profit -> This is what I am looking for feedback on

Have you made your news robot?

[yaroslavg]

Hi,
the news robot is ready called NewsTrader. Details - at http://www.forex-experts.com.
Regards Yaroslav.

[Baruch]

How does it work in real trading?

[yaroslavg]

Yes, it works very well in real trading and was tested for more than 9 months in different conditions - from NFP to simple GB news on - works perfect.
Regards, Yaroslav.

[cicero]

We are testing very smart system. On the news: All major currency pairs are not jumping at the same time.
Difference is thousandth of seconds.
System can catch bottom or top.

[correl]

Cicero,

Make sense! Were I can find this system?

[Baruch]

Originally Posted by yaroslavg

Hi,
the news robot is ready called NewsTrader. Details - at http://www.forex-experts.com.
Regards Yaroslav.

I tried to download the demo of News Trader, but I couldn't. I don't know why. Has anybody used it in real-time trading?

[correl]

Originally Posted by yaroslavg

Yes, it works very well in real trading and was tested for more than 9 months in different conditions - from NFP to simple GB news on - works perfect.
Regards, Yaroslav.

Yaroslav,
Could you tell me how is your system working?
It is based on......what?
How many pips you can make on NFP?
correl

[yaroslavg]

Hi, yes the system is working in real time trading on real account for more than 9 months.
On the NFP I usually earn from 30 to 140 pips. The strategy based on the setting two (or four) opposite orders in advance before news out with small range of stop. Every values are calculating automatically. You don't need to do anything - ony put NewsTrader on the chart! Trailing stop will protect the profit, and stop will protect from big losing.
Regards, Yaroslav.

[Dicentman]

Hi jesse_breaker

Thank you for this thread. Can you PM with your broker's name. Since I am trading similar strategy on the news, and Money Tec policy will not allow you to put your broker's name on the general forum.

One suggestion for the S/L guarantees. If you have 2 different account for trading the news. You can put their S/L to their margin call.

An Example clarifying this

1- 2 A/C's each for 500.
2- GBPUSD is 1.8800 before the news by 15 minutes.
3- Buy 4 lots on the 1st account on market price (1.8800) with S/L 20 pips (1.8780), T/P @ open. Before the news release by 30 seconds.
4- Sell 4 lots on the 2nd account on market price (1.8800) with S/L 20 pips (1.8820), T/P @ open. Before the news release by 30 seconds.
5- Let the S/L trilling protect you profits. And do not be greedy in closing the +ve position.
6- When the release came out one account will be closed on margin call .
7- The other account will be in a very good profit area .
8- I Think this is will be the end for the S/L guarantees problem with the brokerage houses.

Cheers