How to trade NFP/FOMC and make pips (How to trade NFP/FOMC and make pips)

Frequently Asked Questions to Think About: How to Trade USD with NFP and FOMC High Impact News

Generally speaking, during NFP and FOMC events, XXX USD and USD XXX currency pairs start to rise/fall like crazy to gain massive PIPS, depending on NFP (non-tabular payroll) US employment data (or employment data from FOMC: Fed's dovish/hawkish stance on the US economy + QE tapering/more QE (QE1, QE2 and QE3) + USD rate hikes etc.

First there are 3 options available to us:

1. Close your computer, I will not trade or speculate on these data ==> (stay away from this important news NFP/FOMC)
2. Use business news trading software such as:
   1. oracle trader
   2. Non-agricultural employment pilot

3. Use a very simple strategy that I have used many times and proven successful (read below)

Simple strategy :

As traders we know whether it is NFP (or) FOMC news, the impact it has on the US dollar is staggering, so how do we gain our share of PIPS through smart trading?

I have tried this approach several times as there is not much risk and have gained a fair amount of PIPS each time depending on the nature of the action we take based on this message.

Before the event starts, for example 7 minutes ago: receive all 6 trades in the same direction/same volume and keep pending orders at 2 times the initial volume with a distance of 30 pips

For example:

Entries :

3 pairs from the XXX USD universe:

Buy 0.1 EUR 1.3411 USD Buy 0.1 GBP 1.6952 USD Buy 0.1 AUD USD 0.9391

3 pairs from USD XXX Universe:

Buy 0.1 USD JPY 102.08

Buy 0.1 USD 1.0852 CAD

Buy 0.1 USD 0.9117 CHF

Set 6 pending orders with a distance of 30 points, which is 2 times the above order, that is:

Sell ​​0.2 EUR 1.3381 USD Sell 0.2 GBP 1.6922 USD Sell 0.2 AUD 0.9361 USD Sell 0.2 USD JPY 101.78
Sell ​​0.2 USD CAD 1.0822
Sell ​​0.2 USD CHF 0.9087

quit:

I usually close all my trades at once after the pending trades for at least 3 of the 6 trading pairs are activated and take home a nice USD profit

Why this strategy works and is suitable for making EAs for testing:

NFP/FOMC events usually have a USD strengthening/weakening theme, and if assuming the data creates positive USD sentiment, then that creates trend opportunities:

Of our 6 trades, the USD XXX Universe group (3 pairs) will perform well, we have to worry about the XXX USD Universe. A pending sell order for the XXX USD pair will be activated to limit any damage and take profit on the downside + plus we have 3 USD XXX pairs doing well + voila, we have limited damage on the XXX USD pair and we make some profit depending on the trend.

To automate this strategy for EA coders, my idea is as follows:

i) The EA should simultaneously buy 6 pairs (3 USD XXX and 3 XXX USD pairs) and sell 6 pairs (3 USD XXX and 3 XXX USD pairs) at the same time / trading volume "x" (if there are no orders for these currency pairs)

ii) Pending orders with 2x volume of all open trades are waiting at a distance of 30 pips

iii) Basket order mechanism, polling the total profit of all open orders matching the ProfitTarget Dollars set by the user and closing them all at once.

I have used this mechanism at many Fed FOMC and NFP events and have proven the manual operation to be successful, any comments/tweaks welcome.

cheers,
scooby doo