Are "momentum" strategies possible? That is, catching a continuation of a strong move ... - page 3
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
read the whole post. no answer.
On the first page I wrote my assumptions about spread widening on the news.
What kind of answer is needed?
why does the spread widen on the news, who exactly is widening it and why?
In my opinion it's as simple as that -
The glass is standing still - and suddenly all start to beat to one side - so there are no Ask's, but Bids are still there...
Then there are many different subtleties, some MM dealers smooth out the spread - that is, they narrow the spread for a long time - not higher than a certain speed,
Some play on the contrary, if the spread widens a little, it quickly tapers.
Why does the spread widen on the news, who exactly widens it and why?
I read the entire post.
"I think it's obvious that at the moment of news release the spread widens a lot, the price goes a significant distance in seconds to the order accumulation area, where they open or close their positions".
I would also add that in reality the spread is larger because of slippages (the price can move 100 points within a few seconds, a stop will not have time to trigger, there will be requotes).
Spread widening and slippage allow for small movements of price to the required coordinate.
The purpose of triggering of stop orders, plus the impulsors start to connect.
Tried the ANTI-pulse variant, i.e. open AGAINST the movement.
On the same story (+ spread of pips) gives 1103 pips, with parameters N=2, X=10 pips, TP=SL=18 pips,
these are the best parameters when fixing N=2 and this history.
It can be seen that increasing TP and X will decrease the results.
TP SL Time in pose
245.000000; 191.000000; 83.777518;
Other options:
You're all right, but it's all about the first seconds of the news. I am talking about the spread widening by about the amount of the news move up and down just before the news comes out. Hasn't any of you come across this? ))
You're right what you say, but it all relates to the first seconds of news. I'm talking about spread widening by approximately the amount of the news move up and down just before the news release. Hasn't any of you come across this? ))
Well, the kitchens also seem to buy currency to sell to us, so they widen the spread to protect themselves against slippages.
In fact, the spread is many times larger than what we see. I often tried to catch "impulse" at such moments in an offer or bid price.)
How perplexing it was when trades opened much worse than in a quote, thus spread increased, for example, to 30 points. Not quite true + slippage = the whole 70 points may be.