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FOREX Trading News

Forex Strategy Lightning

Forex Strategy Trading the News

This strategy, on which I traded for some time early in his career and which gave a trader at one time 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).

To be honest, I did not want to publish this strategy because Will it work now I do not know ... decided to publish the same, because Many traders I always ask: "How to sell on the news?", "What kind of news make a good impulse?", "Do you have a strategy for trading on the news?", etc. And also, some argue that trade on 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 from trades or "penny" accounts or demo accounts .

Here is one example of the news on GBPUSD (interval M1):

Torgovlya on novostyah

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

In this strategy, you will not find advice on opening transactions, I will tell you how I personally sold and a few other people I know traders who like to earn with minimal risk and why this strategy has ceased to give a good profit.

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

So point strategy forex trading news:

1) All the news trade is not necessary, there are a number of news stories that give a very good start, that is, momentum and opened with a gap or the price is rapidly moving in one direction. Approach only those news which at the exit price in most cases, namely 50% or better and 70% moves in one direction at least 2-3 minimum distance of indentation from the price (permitted by your broker forex).

's list of the news (just say that this list is constantly changing - some news today work, tomorrow others) - at least a list of those stories that need to pay attention:

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 is the 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

  • ad interest rates

  • unemployment

2) When the news of America - is chosen in the main currency pair GBPUSD, as well as the USDJPY (gives a nice boost if the pound to the news-the dollar has already made a few chaotic movements up and down at a distance of more than 10 -20 points, or go in one direction, and the dollar-ene is at the same time). Well or very important news - EURUSD, USDCHF.

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

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

When the news for USDJPY, USDCHF, I personally do not traded since little meaning in the data was not news.

3) Every week, you print out yourself calendar forex news and note those news which will be trading.

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 synchronize their watches, that they go well and you understand what is happening in the market - there is reaction to the publication of news or not.

5) Assume that the news Retail Sales for the currency pair GBPUSD at 8.30 on GMT . You have come to the trading terminal MT4, watched what was going on the market and select 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 following the publication of news, "explode" into some of the parties.

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

Very good impulses given by those news, which is not expected Most of traders, such as a sudden decrease in the discount rate by 0.5 basis points, and expected that 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, you take away 1000-1500 pips soon !!!

6) Since news on the pound, we are putting 2 pending orders at the breakdown (Buy Stop and Sell Stop) from the current price for 5-10 -15 points (all depends on fluctuations in the price and the time for which you set orders). If you set the order of 20-30 seconds before the release of news (the main thing not to miss), the news is important, and fluctuations in the price almost stopped, then you can safely put it away 8.5 points from the price . < / p>

volume of transactions governed by the importance of news and her reaction, ie if the news is stable and well - the maximum possible volume of trade, if the news is weak, but still gives the impulse sometimes - put the average or the minimum lot.

For these purposes, I have personally used Trailing Stop by 1 point (just the perfect advisor for this strategy in general and to trade on the news, it is then I used it for other purposes) - is fast and puts in a few seconds pending orders with the specified parameters (stop -loss, take profit and trailing stop-loss or rearrangement of zero).

7) When the news announced price is usually sharp "moves" (if not "fly away") to one side, and if your orders were put in time, the broker opens them at 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 did not work order .

After that you or treylinguete data warrant at a safe distance from the price of 20-30 points, or turn on the minimum trailing stop-loss allowed by your broker (for example 2-3 points - with the same trailing stop of 1 points).

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

Primer placing orders on the news foreks

8) Stop-Loss at the same time expose itself to the minimum distance permitted 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 if you have a desire to keep this transaction 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 a distance of 100 points (just in case) or do not bet at all - a position close to trailing, but it's better to put a profit - and suddenly you have Contact propodet immediately after placing orders, and the price will come back and you close the stop-loss - would be a shame and very ...

Below are a couple of examples of news outlets from my collection:

Strategiya forex'Torgovlya on novostyah' Forex Trading Strategy 'Trading the News'

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

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

Its pluses:

  • 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. Ie while making a deposit of $ 1,000 you open up a lot, respectively, at the risk of a $ 30-40 (60-80 maximum) you with a good news outlet (70-100 points) making a profit $ 700-1000! - Agree it's just a dream! At the same time spend on such a salary maximum of 15 minutes per day. Well, if not open up a lot, but 3-5?? - Count ...

  • And even if the two warrant knocked on 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 These losses overlap many times a deal .

  • There were times that I have not even seen as open orders - you immediately notice the price jump and you have 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, though increased, and you start to worry - "why not open an order?" - everything is ok: discover the history of transactions, opened and closed .

  • feels simply "The King of the forex market" - the mood, as if you picked the jackpot, especially if you see that all around and only lose money.

  • can only withdraw cash and money - and do - all excellent!

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

And 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 appear as turns out that the quotes for which you have opened the transactions were not the market - here's the first problemma (in DC that gives you money, because of course your transactions nobody is marketing)

  • Accordingly, your score falls under the attention of your broker and your transaction is now starting to open market prices - is in the best cases, and even on the worst deals (by Khayyam and Lo) - and your stop-loss as standing, and well worth it if the price has gone in the opposite direction, your stop-loss, then here's the first big loss ...

  • Also there are situations that DC lost connection to the news or worse immediately after the news.

  • some brokers to increase the price for otsup pending orders

  • Some DC broaden the spread, enter "level gap"

  • Or write in the contract, that transaction are converted, if covered at least 1-2 minutes after the opening

  • Well, or you have opened, everything is fine, shut down profit came to rest after a "nervous tension" with the resulting share of adrenaline, come and your transaction is revoked, recalculated with a loss, or are just starting to withdraw money - you counted it ...

  • Well, the most "intelligent office" - you simply knock out the tails inside the 1st minute (although in the normal tail of the DC nebylo) and the price is or how to redraw the charts on the following day.

In general, techniques that come up and come up with another broker forex just a huge number and they are constantly being improved.

After this course begin conversations - this DC 's goats .. they took my money, they have deceived me, "but in actual fact all garazdo easier - it does not market prices, and deals such quotations are entitled to convert DC (contract to be read when opening an account - it all spelled out).

Well, or put yourself in the place of DC - you would have gave such a "nerd" money from his 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 on market quotations - to open accounts at companies with a floating spread (and it is much worse - trust me, the spread sometimes reaches up to 30-40 points, ie Most of stop-loss just close "licks ").

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

I traded and American brokerage firms forex, 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 trades)!

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

Though of course you decide, deal or not ...

Want to earn on Forex - trade in a quiet market or bargain to the news in one of the sides, but be sure that the stop-loss at the time of the news NOT GUARANTEED!

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