Opposite orders around macro announcements

[Sharkie78]

Opposite orders around macro announcements

would like to get some feedback about this strategy.

Mechanics : Before major economic announcements like NFP, interest rate and oil inventories in the U.S I try to find the pivot point of the specific market (S&P 500 ,Brent crude). I place and order a Short order around S1 and a long around R1 where my stop loss is +/-5 points from the Pivot. My Take profit is around S2/R2 respectively.

I am able to scalp 20-30 points on average using this system but, I feel like I a can improve even further to avoid backfire.

Last NFP worked perfectly for me as the market gapped and my position was closed more the 100 points above my take profit point.

 

[TheBramble]

How long have you been trading this strategy?

How frequently do you get whipsawed into, and out of, both trades?

How do you manage to scalp when the spread typically widens so dramatically at those times?

 

[Sharkie78]

How long have you been trading this strategy?

How frequently do you get whipsawed into, and out of, both trades?

How do you manage to scalp when the spread typically widens so dramatically at those times?

I usually allow only one of the order to be trigerred and than cancel the second one. I close the position when I see that the main first main movement is loosing momentum,I am not waiting to see how the correction will work out.Sometime it works in my favor and sometimes the big movement happens only after the first reaction.

I have been using this stategy for about 4-6 months I use it about 4-5 times a month. I am usually looking to combine the decision with some technical indicators who will support that the market should be moving in some direction. I use MACD and Stochastic.


In regards to scalping,It may have been the worng choice of words,I meant I am just trying to go in and out of the market fast.

 

[TheBramble]

I have been using this stategy for about 4-6 months I use it about 4-5 times a month. I am usually looking to combine the decision with some technical indicators who will support that the market should be moving in some direction. I use MACD and Stochastic.

You are effectively taking a random punt into momentum (not even direction). No indicator will help you in that regard given the timescales you are chosing to operate within.

 

[Martinghoul]

I'd be careful, as you're basically going to make money only if a specific pattern is realized. Do you believe that the occurrence of this pattern is more probable? 'Cause that's what it comes down to, really...

 

[Sharkie78]

I'd be careful, as you're basically going to make money only if a specific pattern is realized. Do you believe that the occurrence of this pattern is more probable? 'Cause that's what it comes down to, really...

I believe so. The pattern I am after is : When an announcement is made and the actual numbers reported differ from market consensus the market will react immediately. Since I am placing opposite order I don't care which way as long as there is significant movement in either direction. I welcome you to check this out yourself. the key for consistent profits using this system not being greedy and close the position after the first movement.

 

[Martinghoul]

I am not suggesting you're wrong... Theoretically, you could be right, in fact, due to all the short-term overreaction/long-term underreaction behavioral effects, which, in my view, are real. I am just suggesting that you should be very careful. Maybe it's worth refining your strategy further to quantify the effects you're trying to capture? Also, you may want to vary your strategy depending on the type of even you're playing with...

 

[GammaJammer]

It's called a straddle order, and it's a well publicised strategy and well known to the spreadbet bookies. It usually works ok for a while then there will be some horror story about 300 point slippage in eurusd and these and other similar boards will fill up with sob stories and talk of lawsuits.

No such thing as a free lunch guys.........

GJ