Trading based on Non-farm Payroll

[sundavi]

Hi,

I wonder if anyone knows how professional traders trade right after the release of the data.

What I do nowadays is that I wait to see the initial movement at 1:30:00 to see the direction of the data (I don't need to know the actual data) and then I place a buy/sell order for Dow Jones futures at 1:30:01. If I can get a trade executed, then I am guaranteed to make some profits during the first 1 - 2 minutes.

However, sometimes I am unable to execute the trade. I wonder if this is purely due to the execution speed of my broker. Is there a way to overcome this? I am currently based in Asia. Does this mean I can never beat the traders based in the US?

Also, is there an automated tool that people use to trade based on this data release?

Any comments will be appreciated very much.

 

[p-lab]

Lack of liquidity I would have thought, but then what do I know.

 

[anton_baranovskiy]

Its common situation for many traders. Bots - they work very speed and don't give you a chance to get good price. My decision for this situation: after news (1-2 s) I sent my orders at price what is different then I see in Level 1. If news are good - I sent orders that 5-7 cents higher then I see in Level 1. Often I get my position so you can try this path.

 

[anton_baranovskiy]

About automated tools - I trade stocks and use Basket Order Entry to trade news. I prepare it before news for buy and sell direction and when news come I sent orders to one of this direction.

 

[sundavi]

Thanks. That's pretty informative.

 

[anton_baranovskiy]

you are welcome