Forex Strategy "Trading the News"

Forex Strategy "Trading the News" - a strategy for which I traded for some time early in his career and a trader who gave their time in a very, very good DEVIDENDY, and although this strategy was not invented by me, but was tailored to that market time (this was 3-5 years ago).

Frankly, I did not want to publish this strategy, since whether it will work now I do not know ... decided to publish the same, because Many traders I always ask: "How to sell on the news?", "What news give a good impulse?", "Do you have a trading strategy on the news?", etc. And also, some argue that trade on the forex earnings and most importantly do not need to know - you can just sell on the news and everything will be OK ... But unfortunately Most of them are selling out or "penny" accounts or demo accounts .

That is why, knowing how interested in this topic for many traders decided to publish it and a little restrain fervor of many "dreamers" of the forex market.

In this strategy, you will not find advice on opening transactions, I will tell you how I personally traded and a few other people I know traders who like to earn with minimal risk and why this strategy was no longer give a good profit.

Although at the moment, this strategy will be simply elegant work on demo accounts of any broker FOREX and occasionally will give a large number of profitable trades, but in real life - not sure ...

And so the essence of forex strategy, "Trade on the news":

1) In all the news trade is not necessary, there are a number of news stories that give a very good start, that is, momentum and opening up a gap at the same price or rapidly moving in one direction. Suitable only news outlet in which the price in most cases, namely 50% or better and 70% moves in one direction at a minimum distance of 2-3 minimum margin from the price (allowed by your broker forex).

Here is a list of the news (just say that this list can always change - are now working some news, tomorrow others) - at least a list of those stories that you should pay attention to:

UK
Retail prices
BoE meeting minutes
Retail sales
GDP
BoE meeting announcement
PPI
Trade in goods
ILO Jobless rate
BoE quarterly inflation report

Germany
ZEW economic expectations index
IFO business climate index
ECB meeting announcement (very rarely have a reaction)
ECB press conference

Canada
BOC meeting announcement
CPI
Retail sales
Employment

USA
PPI
Retail sales
Existing home sales
New home sales
ADP employment
ISM
Nonfarm payrolls
Export / Import
CPI
FOMC meeting announcement

Australia
RBA meeting announcement
Unemployment rate

New Zealand
the interest rate announcement
unemployment

2) When the news in America - basically choose a currency pair GBPUSD, as well as the USDJPY (gives a nice boost if news to the pound-dollar has made some chaotic motions up and down over a distance of 10-20 points, or go in one direction and the dollar-ene is in this case). Well or very important news - EURUSD, USDCHF.

With the publication of news on GBPUSD, EURUSD - of course we sell the currency pair of the country in which the news.

When exiting news for Canada, Australia, New Zealand - Choose a currency pair that country associated with the American dollar: AUDUSD, NZDUSD, USDCAD

When exiting news for USDJPY, USDCHF, I personally did not trade because little meaning in the data was not news.

3) Every week you print yourself calendar forex news and notes the news, which will trade.

4) After that, all you have to do is go to a computer for 10.5 minutes before the publication of news, as well as to compare notes, that they go well and you understand what is happening in the market - there is a reaction to the publication of news or not.

5) We assume that the news Retail Sales for the currency pair GBPUSD at 8.30 in GMT. You have come to the trading terminal MT4, watched what was going on the market and choose the interval M1 GBPUSD. If the price for this currency pair is in place - very good - it's around 70-80% a sign that the market after the publication of news "explode" into some of the parties.

Although good news outlets are only periodically, but not always - it's a fact! That is, 1-2-3 month news work out just fine, medium 1-2 months, 1-2 months and then the market may not react even to very important news. Then again, yields are good, and so on.

Very good news impulses given by those who did not expect Most of traders, such as a sudden decrease in the discount rate by 0.5 basis points, and expect that the rate will not change. When these changes took place price (before) 100-200 points without stopping and, accordingly, if you're in the market in the right direction, then take away the 1000-1500 pips at once!

6) Since the news on the pound, we are putting 2 pending orders at the breakdown (Buy Stop and Sell Stop) from the current price points on 5/10/15 (all depends on price movements and the time for which you set the order). If you set the order of 20-30 seconds before the news (the main thing not to miss), the news is important, and price fluctuations almost stopped, then you can safely put her at a distance of 08.05 points on the price.

The volume of transactions regulated by the importance of news and her reaction, ie if the news is stable and well - trading the maximum extent possible, if the news is weak, but still gives impetus sometimes - put the average or the minimum lot.

For these purposes, I personally use a trailing stop of 1 item (just the perfect advisor for this strategy, and generally to trade on the news, it is then I used it for other purposes) - works quickly and makes for a few seconds of pending orders with the given parameters (stop -loss, take profit and trailing stop-loss or rearrangement of zero).

7) After the news announced price usually sharp "moves" (if not "fly away") to one side, and if your orders were put in time, the broker opens them at the current price and you automatically are already in profit. Then you need to rearrange the first thing your orders in bezubytka level or profit, and then remove the warrant did not work.

After that you or treylinguete data warrant at a safe distance from the price of 20-30 points, or include a minimum trailing stop, your authorized broker (eg 2-3 points - with the same trailing stop from 1 point).

At the first roll back your order is closed with a profit and sometimes even very good - and believe me, you will not regret that you did not take all the items - you have so many, and (especially if you are trading a large lot).


8) Stop-loss at the same time expose itself to the minimum distance allowed by your broker (again 2-3-4 points) or at a distance of 15-20 points - this is optional, depending on how fast you want to close the deal and whether you have desire to keep the deal at least a few hours or you want to close it immediately, at a profit.

But believe me, the 1st option is preferable!

9) Take-profit put at 100 points (just in case) or not raised at all - a position close to trailing, but it is better to put a profit - and suddenly you have a link propodet immediately after placing orders, and the price will come back and close your feet on -loss - would be a shame and very ...

That's the whole strategy of trading on the news.

Minimal and perfect, if not a few but ...

Its advantages:
very minimal risk, if you trade a pair GBPUSD (1:200) - margin deposit for open positions: at the time when I was selling an average of $ 900. That is, while making a deposit of $ 1,000 you open up a lot, respectively, at the risk of a $ 30-40 (maximum 60-80) you with a good news outlet (70-100 points) 700-1000 $ a profit! - Agree it's just a dream! At the same time spending on such pay a maximum of 15 minutes a day. Well, if not open up a lot, but 3-5?? - The math ...
And even if the two orders blew the stop-loss, your loss is a maximum of 2 (2-3-4) points, with a lot oeme transaction is $ 40-60-80, but at a profit, this loss is much overlap one the transaction.
There have been cases that I have not even seen as an open order - you will immediately notice a jump and the price you have already closed a profit - that is, increased by an average of 2 times - even a second is not (just to see that flickered amount in the account and for some reason has increased and although you start to worry - "why not open an order?" - everything is fine: the history of open transactions, open and closed .
It feels simply "The King of the forex market" - the mood, as if you ripped jackpot, especially if you see that all around and just lose money.
can only withdraw cash and money - and do - all excellent!

Of course, you will see the "awesome" the result of trying to increase their deposit, while not forgetting that the best money - when they are in your kormane, not on account with a broker.

Now, cons, who appeared a little later (although I must say they are more hurtful than physical):
Yes, you earn money, they took off (1-2-5 times), but it turns out that your broker losses occur because turns out that the quotes for which you have opened the transaction were not the market - here's the first problemma (in DC that gives you your money, because of course your trades no one is marketing)
Accordingly, your account falls under the attention of your broker and your transactions now begin to open up the market price - is in the best cases, and even on the worst trades (by Khayyam and Lo) - and stop-loss as you stood and stands, and if the price has gone in the opposite direction, your stop-loss, then here's the first big loss ...
As well there are situations that DC lost connection to the news or even worse immediately after the news.
Some brokers otsup increase the price for pending orders
Some extend the DC spread, enter "level gap"
Or write in the contract that trades are converted, if covered at least 1-2 minutes after the opening
Well, or you have opened, everything is fine, close the profit went to rest after 'nervous tension' with the resulting share of adrenaline, come and your transaction is revoked, converted at a loss, or are just starting to withdraw money - you counted it ...
Well, most "smart office" - just knock you tails inside the 1st minute (although in the normal tail of the DC nebylo) and the price is or how to redraw the graphics on the next day.

In general, methods that have come up with and still come up with the forex broker just a huge number and they are constantly improving.

After this course begin conversations - this DC "Ros .. s, they took my money, they have deceived me," but in actual fact all garazdo easier - it does not really market quotations and transactions on such quotations are entitled to convert DC (contract to be read at the opening of the account - everything is spelled).

Well, or put yourself in the place of DC - you would have gave this "nerd" money from her Korman?? After all, what really nebylo quotes at the moment the news of those that you ordered - and because the gap was formed!

If you want to trade at market quotations - to open accounts at companies with a floating spread (which is much worse - trust me, spread sometimes reaches up to 30-40 points, ie Most of stop-loss close just "licks").

Of course not attempt to deal with the broker may, however, and was created counselor "NEWS" - a more advanced version of "trailing stop from a point" - and here is the automatic tightening of the stop-loss if you have opened with slippage and a list of news is given, etc. . That is why there are no statistics - Advisor works fine, but here you're lucky when trading on the news or not - it's just you and your broker!

But trading on the news, you have to understand - the money you give will not be one, so all the forex broker and trying to deal with the "news traders." Want to trade with this broker - agree with it, but hedge your transaction (within the company), even very large companies will be - a fact which would license them was not - hedge (or rather the floor and balance on the output market) transactions is the foundation ANY forex broker! As they say, "checked on the skin" ...

I traded in American and forex brokerage firms, Swiss, British, large Russian, Austrian, etc. - Believe the result is the same for all, as soon as you notice that you made the news - you will soon put a spoke in the wheel (and it happens almost immediately or after 1-2 deal)!

That's why I do not trade more on the news - it makes no sense and no one to advise you not (as many now on this will not work)!

Though of course you decide, to trade or not ...

Do you want to earn on Forex - trade in a quiet market or bargain to the news in one of the sides, but be sure to stop-loss at the time the news is not guaranteed!

Or at least trade with the strategy of trade on Nonfarm Payrolls - I think the chances to earn at least there is!