trade on news - good and bad sides?! I got nice free too

J_C_Anderson

Active member
114 17
It is quite important to understand the nature of each event and its possible impact on the market. This understanding will give trader the possibility to see the whole picture of what is going on.
At the same time, it seems that most of the news releases cause huge volatiliy during the first minutes after being announced. This means that first movements are extremely large and could have any direction. Then, after the first reaction will slow down, the real trend would appear. That is why it is better to wait for some time to be able to enter the position with the relatively low risk.
 

tomorton

Legendary member
7,231 962
It is quite important to understand the nature of each event and its possible impact on the market. This understanding will give trader the possibility to see the whole picture of what is going on.
At the same time, it seems that most of the news releases cause huge volatiliy during the first minutes after being announced. This means that first movements are extremely large and could have any direction. Then, after the first reaction will slow down, the real trend would appear. That is why it is better to wait for some time to be able to enter the position with the relatively low risk.

Great stuff, you have absolutely summed up the danger of news trading. Its possible you can get the direction and extent of the move right but be shaken out by initial volatility which is basically just noise as the major players adjust their positions and risk exposure and while our brokerage firms widen their spreads to ensure they don't have to accept unquantified risk during this period.

Its smart to follow the trend but its dumb to follow a trend which isn't there yet.
 

FXX

Experienced member
1,140 195
I trade news all the time and it has consistently produces 10 to 20 percent a month for the last 18 months. I trade the spikes as they happen and getting the direction right is a matter of doing research, not guess work.
 

Andy4rum

Junior member
27 17
This is great to read all comments and get some useful ideas or point of view on that trading way. Anyway, lately, focus on news mainly + some auto tools just for a fun and testing.

so, very nice - simple and powerful! See attached
can't attach zip file. sorry
page: http://www.dmurakami.com/eanews4u.htm
no email/registartion - just clear download
I'm quite happy with that tool... but want to ask some modification... first of all, since I'm out quite often - want to get it for
2-3 news... + lot2x options... since I get a loss - next trade will be with higher lot... but this is one time option - than lot gets
back to normal.

Any ideas what else may be useful?
 
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Andy4rum

Junior member
27 17
Does anyone is using paid news services? Does it worth it? Get a bit faster analytics... but not sure, how helpful would it be...
 
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Andy4rum

Junior member
27 17
Plenty of news almost daily to make money off.
Hey

Did you try this tool or you are totally ignore news opportunities? I know, that many traders do that... like with Martingale - some traders like, some just ignore.. we are all different - that's great :)
 
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Bill Signer

Junior member
13 2
hey

sounds interesting... after long pause I'm in again... first of all, main interest is in EAs and something like this... news trading tool due time limits and short windows for trading... hope, it helps me...
 

Bill Signer

Junior member
13 2
like this tool, thank you for sharing... very impressed...
I have tried it yesterday on "Core Durable Goods Orders m/m" - not bad at all... just need to find right settings... just on practice...

Thanks to topic starter... really useful tool!
PS: I used just common news sources... nothing special..
 

DaVinciFXGroup

Newbie
5 1
Hi guys!
I want to speak about trading on the news. By and large, this is a game in one direction, namely in the direction of the broker. Since initially the trader is not in the most favorable conditions, due to the high spread and strong slipping of the opening position.
For this reason, trading on the news is somewhat similar to a roulette with a very low expectation. Believe me, we checked it repeatedly.
In addition, if there is interest, we can lay out a trading advisor specially written by us specifically to test this idea. Quite good results can be obtained only from unscrupulous brokers, but after a succession of successful transactions, you will be included a special plug-in that worsens the terms of trade.
 
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Bill Signer

Junior member
13 2
Hi guys!
I want to speak about trading on the news. By and large, this is a game in one direction, namely in the direction of the broker. Since initially the trader is not in the most favorable conditions, due to the high spread and strong slipping of the opening position.
For this reason, trading on the news is somewhat similar to a roulette with a very low expectation. Believe me, we checked it repeatedly.
In addition, if there is interest, we can lay out a trading advisor specially written by us specifically to test this idea. Quite good results can be obtained only from unscrupulous brokers, but after a succession of successful transactions, you will be included a special plug-in that worsens the terms of trade.
Yes, highly agree and even more. I can't invest in FX more that 1k... just because I don't believe in Brokers or other factors... this is my point of view. I like the proccess and trading idea. By using small lot - you won't be interested to broker or someone else. This is the chance to play :)
 
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