Anyone trade purely based on news only ?
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Baruch said:
bloomberg provide an api (application program(ing) interface) that allwos you to write your own applications to retrieve static data from their servers. So instead of using their terminals to look at historical prices, volatility, real time quotes etc, you can use the api. Wrt to trading news, nistead of waiting for the figure to come up on the screen you can get it striaght into your own application and trade long before any trader in the world can fathom the information and decide whether or not to buy or sell. For single figures this has a slight edge, but is vital when trading multiple figures such as today's ppi. looking back historically, you can probbaly deterine your own trading ranges that suit your risk apetite but I woudl say that input would have to be 0.9% out from the market estimate and output 0.3% out. So say output is only 0.2 out, would that mean you don't want to trade, if input is out by say 0.5%, it might be worth while trading becase combnied, the figures are far out enoguh to warrnat a decent move. All the logic can be progammed into the applciation before each figure so the split millisecond you get the trade *whoosh* you trade requesty has been sent off. In reality therer is a little bit more to it
Thank you. I am not sure I understand all of it, but it seems to be wonderful with such a machine. But I suppose the risk is that you can be wrong with your guess, how the market will react to the number?
PS. What chart time frame do you use for news trading? I min or what?
PS. What chart time frame do you use for news trading? I min or what?
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Baruch said:
for the first few minutes I only use charts that I've created myself with price feeds comign from bloomberg. The reason for this is that if you rely on one price soruce (whether that be from a single market maker or the bloobmerg composite) I feel you're not getting an accurate refelction of the market as a whole. Because of this I seperate all the differente price sources I believe are give me the edge in determining where the market is about to move. That along with my "poor man's measure of fx volume " (read number of ticks per rolling time period) I get the app to close out a % (depends on figure as state of market - read finger in the air) of my initial position once the first differnetial reaches 0 (i.e. first turning point). If the move looks like the start of a longer term trend then i have a number of exit strategies, some simple ones based on the time since entry, volatility etc and others based on fast qmc simulations (which tbh don't really work but am still developing)
Baruch said:
tomorrow's rate hiek is a cert so there's no point trading off the figure. I'll be waiting to hear what he says before trading. Generally as you may have realised that I only trade this strategy wehn there is a figure involved as tha'ts the easiet for an appliction to decipher. There's no way you'd ever be able to code in the amonut of logic to read any type of news to trade off ... like the yuan revaluation, not possible unles you got a huge amount of resources. However, don't think that this is just for FX though. On a retiail level, this strategy can be applied to equities and commodities. EVery wednesday you have the doe crue oil figure whihc recently hasn't been so spectacular but 6 months ago when the oil crisis was on everyone's minds this figure was a serious rocker.
OK. I understand that a Bloomberg can make a fortune to a good trader. Thank you sccz97 for all the information, you have given in this thread. I am sorry that some here may not believe you work for a hedge fund, but don't be angry because of those silly comments.
Baruch said:
while having bloomberg helps tremendously not just with the trading but with the analysis that is required, it's all about information in the end. Information provides you with the ability to make a better decision than someone without. Say you know from this discussion that when a figure is release, there is a possibility for the market to gap. But how do you estimate how much it will gap depedning on the figures so you can adjust your trade accordingly? you need to have historic prices and news releases. This is somehwere bloomberg is invaluable. It also helps tremendously if you have a databse with all the data you need. The IT skills I learnt in uni have hleped tremendously with analysis
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Hello to everyone, i have a simple question, how much do you folks make each month net and what kind of trading capital do you use?
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Very typical strategy of the Japanese during WW2: apologies, apologies, bow, bow, looked kind, looked gentle, then stab! You don't know when you don't know how. Still observable in many characters.
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JP1966 said:
OK, I see. So you are talkink about the first moves. I can understand that going long at 94 was not very good. It's a little bit amazing that it went so high after the number, because the market - as far as I know - had expected a number below 200.000.
PS. What chart time-frame do you use to news trading? I min?
Baruch said:
I am always looking at the US 10 year T-notes to see which way the move wil go. They are more stable than forex. Friday we had a big move down in both T-notes and stock index futures because of fear of more inflation and more rate hikes.
Baruch said:
as I mentioned before, I don' t just trade figures. I use bloomberg for a number of things, news being one of them. I also use it instead of msn which is banned here
And to the anonymous £$%$% who has managed to get a reaction out of me (apologies to everyone else) seeing as you're trying to appear all high and mighty, if you don't believe anything I'm saying do a search for me on bloomberg. If you don't have bloomberg sit down and shut up, you're wasting everyone's time here by not adding anything to the discussionsccz97 said:as I mentioned before, I don' t just trade figures. I use bloomberg for a number of things, news being one of them. I also use it instead of msn which is banned here
MSN? :?:
