Discussing the article: "From Novice to Expert: Animated News Headline Using MQL5 (VII) — Post Impact Strategy for News Trading"
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Check out the new article: From Novice to Expert: Animated News Headline Using MQL5 (VII) — Post Impact Strategy for News Trading.
The risk of whipsaw is extremely high during the first minute following a high-impact economic news release. In that brief window, price movements can be erratic and volatile, often triggering both sides of pending orders. Shortly after the release—typically within a minute—the market tends to stabilize, resuming or correcting the prevailing trend with more typical volatility. In this section, we’ll explore an alternative approach to news trading, aiming to assess its effectiveness as a valuable addition to a trader’s toolkit. Continue reading for more insights and details in this discussion.
The strategy we explored in the previous article centered on placing pending orders shortly before a high-impact news release. The goal was to capture profits from the sharp price movements that often follow such events. While this approach can be effective, there are scenarios where it falls short—such as when one of the orders is triggered but fails to reach the take profit level, eventually hitting the stop loss instead.
Fortunately, in our earlier implementation, we built logic into the EA to automatically cancel the opposite pending order as soon as one is triggered. This automation is crucial, as it prevents both orders from being activated during a whipsaw, a situation that could otherwise result in a double loss. By relying on algorithmic speed to make these decisions within milliseconds, the EA offers a level of precision that is nearly impossible to achieve manually.
However, if a trader wishes to avoid this whipsaw risk entirely, an alternative strategy becomes necessary. In this discussion, we turn our attention to a post-news trading strategy—executing trades after the high-impact event—designed to complement and expand the capabilities of the existing News Headline EA.
In the next section, we’ll dive into the integration plan for this strategy and assess its feasibility through chart history analysis and live logic implementation.
Author: Clemence Benjamin