Straddling' in forex is a quick way to lose money, off news even faster. One is out instantly twice the spread just to catch one position.
There are so many factors to think about even before attempting this.
When news comes out, spreads can widen out up to 15/20+ pips. Triggering losses before news has even been released.
If one is watching most extreme price traded for Pair being traded and sets s/l off of extreme price. When spreads return to normal, one's position/risk will not be where one would have wanted their % risk to be. That is a best case senerio. One that would be if spreads did widen before news released.
You would have to be calm and efficient enough to see where spreads widened to, calculate where risk/SL would be then enter trades seconds before the big move.
This is still not factoring in time or type of news one is trading off of. If one takes random trades(different news releases) you can expect random trades. Even with 50/50 odds this puts one's losses far into the red from spread paid alone.
DT
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