A News Dispatcher
If you have ever asked yourself if there are signals in Forex market which provide a good profit at an acceptable drawdown, then you probably know about trading the news. Unfortunately, there is not much information about this type of trading. It all happens because "trading the news" and "automation" concepts were almost incompatible until recently. The A News Dispatcher Expert Advisor for Auto Trading is supposed to fix this situation.
Forex market is like a living organism as thousands of traders comprise its essence and actually form its mood, which reflects on charts in a simplified form. One of the components that form the market mood is the news. The most interesting is that usually unpredictable mood of the crowd becomes predictable at news publication. Indeed, there is a direct dependence between the news data and consequent movement of currency pairs. This principle is used by the Expert Advisor developed in our secret laboratories.
The principle of trading
The Expert Advisor uses the strategy known as "straddle trade". For gEntryTime time before the news publication on the distance gEntryLevelFactor*[minimum threshold for placing order] from the price two pending orders are placed with a volume calculated as gRiskLevel percentage of assets. The parameter [minimum threshold for placing order] is calculated outside the Expert Advisor on the basis of the historical data for the last five years on each instrument.
If the orders don't trigger during gExpiresTime seconds after placing, they will be deleted. In other case, the block for trailing positions is started; it pulls Stop Losses every gTrailStep points after opening the positions.
The Expert Advisor settings
To make working with the settings easier, they are grouped in the following way:
This is a trader's control panel used for adjusting the Expert Advisor to a definite trading style. The parameters in this group have already been described above, but we will summarize them in a single list:
- gEntryTime - number of seconds before the news release when the Expert Advisor will place the pending orders;
- gExpiresTime - lifetime of a pending order in seconds after placing it. If the order doesn't trigger during this time, then it will be considered expired and will be removed from the chart;
- gEntryLevelFactor - coefficient used for calculation of the distance on which the pending orders are placed;
- gRiskLevel - percentage of free assets used for trading;
- gTrailStep - number of points the price should go to make the Expert Advisor pull the Stop Loss order.
The Expert Advisor performs the synchronization of the time of news publication and the time of the trade server. Unfortunately, it can be done automatically (at least in the strategy tester), so the Expert Advisor will need your help:
- gTimeOffsetFromGMT - broker's time zone shift relative to the Greenwich Meridian. For example, for Europe this value is usually from 0 to +4 hours, and for America the shift -5 hours is often used. Contact your broker to know the time zone of the server.
- gUseDST - displays whether еру daylight saving time is used in the time zone of the server.
The additional information about the Expert Advisor
- The development of the Expert Advisor started in 2009 and we still work on it. Development plans are extensive, and what is the most important, they are achievable.
- During the development of the Expert Advisor we collected the data of more than 25000 economic releases since 2007, which comprised 537 groups in total.
- We analyzed about 2000 news releases on the tick data of different symbols collected during the releases.
- We that dividing the news into weak, average and important (according to the economic calendars) is not enough. As a result we developed an algorithm using which we always know what news and what instrument it is better to trade to achieve the maximum profit (or the minimum drawdown in case of a more conservative trading).
- The Expert Advisor is fully automated. Unfortunately, during the development we didn't teach brewing coffee, but it manages its direct responsibilities well.
- A modified version of this Expert Advisor took part in the Automated Trading Championship 2012 and assumed the 33-rd place. You can see the statistics and the history of trading here: https://championship.mql5.com/2012/en/users/Vladix.
- This version of the Expert Advisor has been ported to MQL4. You can see how it works at 70% risk in the "Signals" service (https://www.mql5.com/en/signals/4019).
Trading the news is one of the tools in a trader's arsenal. We examined and packed it with a how-to instruction. Now you have one more alternative - whether to continue being afraid of news releases or to wait for them anticipating potential profit.
It is up to you to decide!