News Trading
Maji, About two years ago I took a live class with Jimmy Young who trades data releases. He's a knowledgeable currency trader and an honest guy. I realize this may not be what you are looking for but you might check him out at eurusdtrader.com
I would like to know if anyone here trades the different "news" regularly with some kind of system. I am not asking for the system, but would like to know the which "news" they trade.
If your system is mechanical and would like to develop an EA from it, we can work together to develop it. Of course, that means that you will have to share your system with me because without it I can't develop the EA. If that does not bother you then let me know.
MajiGoldensight,
Thanks for the link. It appears that he just has one to one classes only.
Do you know how much his classes cost? Do you trade his news trading system? Is it mechanical and can be converted into an EA?
thanks,
Maji
Thanks goldensight for the useful information. Atleast he is a trader trying to tutor others. Most of the others are just "trading instructors" and not traders.
No I don't trade his news trading system, I was never adept at fundamental trading. I think his system would be considered a combination of mechanical and discretionary ie. he has been trading news for such a long time that it is probably mechanically oriented for him. I personally think that it would be difficult to create an EA for fundamental trading since there is so much interpretation of data and therefore it is not a black and white issue. I only know what he was doing a few years ago which was giving classes live while doing his own trades. His group classes used to be reasonably priced, if I remember correctly it was $50-75 for a month, but his one on one I'm sure cost more, you would need to call him to find out. I only mentioned him because I have a clear memory of him being an intelligent trader and he was more knowledgeable about the trading field than anyone I had run into at that time.
Goldensight,
Thanks for the link. It appears that he just has one to one classes only.
Do you know how much his classes cost? Do you trade his news trading system? Is it mechanical and can be converted into an EA?
thanks,
MajiHi Maji,
A play on the "news trade." There are some events that are known as big Forex news. One of them is the NFP report.
What I do is search the news outlets and read the opinion on the street, what experts say, etc, etc I also subscribe to a newsletter that is very accurate.
Anyhow, once I have all the information and the event happens, I then do a "straddle" on the news item. About 10 minutes before the event I take opposing positions about 15 pips away from the price. I then watch the markets reaction and see when the price rushes in one direction. At that point I close the opposite direction and just ride the wave.
But that's only half of it! On most news events the market will overshoot and there will usually be a retracement of sorts. If you execute your move well and wait for the retracement, you stand to make a good bunch from the event.
A word of caution: Since we are now approaching historical levels on some of the major currency pairs, it may not be a good time to trade the news, or you may want to trade with much more caution.
I remember not too long ago that NFP day was easily worth at least 60 pips, but not quite so here of late. Since the dollar's weakness, we haven't seen the huge rush it used to create. Just be careful!
moneyline
Here is a simple news trade strategy that I have used to good effect before
http://www.forexheaven.com/simple-news-trade.html It works on the principle that by trading in the direction of the second 15 min candle after the news the big players have had a chance to analyse and interpret multi-news events and will by then be effecting their trades. But make sure the news occurs at or near the beginning of the 15min candle or the timing will be affected! On single news events such as a simple increase or decrease (or not!) in interest rates for a currency, then the effect is immediate and obvious. But often (as we have all seen before!) the market will ultimately move in the direction it wants to irrespective of the news and this is often the result of the really big players in the market using the opportunity of huge volume business to enter or exit their positions. News undoubtedly helps to drive the forex markets and one surefire way of interpreting the news quickly is to listen to Bloomberg (you can do this via the internet of course). Their extrapolation of news events and the opinions of the people they subsequently interview on the subject can help to clarify the issues for you.
Good luck!
Trading the News
I would like to know if anyone here trades the different "news" regularly with some kind of system. I am not asking for the system, but would like to know the which "news" they trade.
If your system is mechanical and would like to develop an EA from it, we can work together to develop it. Of course, that means that you will have to share your system with me because without it I can't develop the EA. If that does not bother you then let me know.
MajiThis is how I trade the news - this works well with the EURO/USD & GBP/USD
Simply put if the TREND is up and the news is US positive then initially price will move down - wait for the price to bottom out then price will return up to and often past where it started - once more back on the pre-news TREND
If the news is US negative then that is when you get those real big moves in the direction of the pre-news TREND.
Of course the reverse is true if the TREND is down.
I trade the news in one of 3 ways, the 1st system if news is soft, a combination of the 1st & 2nd system or the 3rd system if the expected news is volitile. You can usually tell in the first minute after the news release which system is going to work best.
1st; Open up the 1 minute chart just before the news annoucement.
Wait for the 1st candle to form, then the 2nd candle, now generally the first break of the upper or lower extremes of these first two candles ( the candle bodies not the wicks) will produce the initial price direction - usually good for a solid 20 pips, do not get greedy at this point.
2nd; Open up the 30 minute chart
Set an order around 5 pips above and below the upper and lower extremes of the first 30 minute candle after the news, the first break of the 30 minute candle generally will give you the price direction for the next few hours - be patient. Most large news events move the price initially then move about twice that distance after things have settled down, sometimes it can take hours to unfold.
A word of caution - if the initial 30 minute candle is over 50 pips long or close to that amount I have found it is wiser not to trade.
3rd; Of course you can just trade based on the pre-news TREND or use the above systems whilst keeping in mind the big TREND picture
Get yourself a good news site, I use this one
What I like about this site is it only gives the main news events, it tells you what the expected result should be, how volitile (Red for extreme, orange for medium etc) and best of all it allows you to set the news to your local time zone.
The main news I trade is the news 30 minutes after New York opens, however there are other opportunities through out the day. these times can alter with daylight savings. but will give you a general idea - just check the news site to be more accurate.
Times at which news is released (EST)
US - 8.30 - 10.00
Japan 1850 - 23.30
Canada 7.00 - 8.30
UK. 2.00 - 4.30
Italy 3.45 - 5.00
Germany 2.00 - 6.00
France 2.45 - 4.00
Switzerland 1.45 -5.30
New Zealand 16.45 - 21.00
Australia 17.30 - 1930
I hope this is of help to you.
Since market price for WTI Oil is based in USD, the price of WT Oil is my reliable indicator of the strength & weakness of the USD.
WTI Oil and Gold, with USD, are all correlated.
Am I correct?
It seems to me you are quite right, but of course i could be mistaken
what's next
What do you think is next for the USD and oil now that the Fed announced extra easing measures?
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I would like to know if anyone here trades the different "news" regularly with some kind of system. I am not asking for the system, but would like to know the which "news" they trade.
If your system is mechanical and would like to develop an EA from it, we can work together to develop it. Of course, that means that you will have to share your system with me because without it I can't develop the EA. If that does not bother you then let me know.
Maji