News Trading - Straddle - MT4/MT5 Resources
Dear FF friends:
I have been studying Forex for several years now and I must say my conclusion is that it is a random business.
Technically, forget it. Price breaks above BB 50% of the time and retraces 50% of the time. TDI, ADX, RSI, no...same story. When the RSI breaks above 80, price moves up 50% of the time and retraces 50% of the time. Combining them doesn't do the job either.
The price action is...well, not sure, not convinced at all.
Regardless, for most of us small traders, 90% of the time the direction of the Forex market is unknown.
But what I do know is that medium/high impact economic news has some impact. So maybe we can play with this instead of guessing and drawing lines on the graph...?
I just started a week ago (I know, 1w doesn't mean much) but for the first time I feel like I can control my trades, take calculated risks, and make profits. It’s still young, but hey, you’ve got to start somewhere…
After all, I have given back to the market and finally made some profits. It feels good. Whether it can last, I don’t know, time will tell...
Basically I trade mid/major news releases at their peak.
Not on the backtrace.
I looked at the USD, EU, CAD, NZD, JPY, AUD, GBP news releases that are well known to impact the FX market (you know them: FOMC, jobless claims, durable goods, retail sales, etc...)
I check the times of news releases every day to be prepared.
10-15 minutes before the news is released, I look at the currency I want to trade (e.g. EURUSD on US news - only trade major currencies if possible) to get a sense of the long-term trend and the intraday trend.
I place a pending buy or sell order away from the current price with a stop loss of about 10-20 pips (depending on the volatility of the currency pair).
About 15 seconds before posting, I adjust both pending orders to be closer to the current price. Not too close, not too far.
Often prices will be in a tight range a few minutes before the release. I placed 2 orders on H/L in this range.
It is important to place the order as late as possible and set a strict stop loss (10-20 pips).
I'd put my finger on "closing" the trade once it gets hit, as the price could reverse immediately.
If not, I would close another pending order and set a trailing stop on the open order (for example, 10 pips every 10 pips).
If so, I'd switch it off manually - or my SL would be hit and the other one might be on.
This is my trading style. After calculation, there are no big risks (stop losses are in place) and it is possible to make good profits, albeit in a safe way and with strict trailing stops.
So far, so charming.
I just wanted to share this with you all.
Well, you can try to design an EA based on this, but that will take away all the fun. At least for me.
kind regards
X.
I have been studying Forex for several years now and I must say my conclusion is that it is a random business.
Technically, forget it. Price breaks above BB 50% of the time and retraces 50% of the time. TDI, ADX, RSI, no...same story. When the RSI breaks above 80, price moves up 50% of the time and retraces 50% of the time. Combining them doesn't do the job either.
The price action is...well, not sure, not convinced at all.
Regardless, for most of us small traders, 90% of the time the direction of the Forex market is unknown.
But what I do know is that medium/high impact economic news has some impact. So maybe we can play with this instead of guessing and drawing lines on the graph...?
I just started a week ago (I know, 1w doesn't mean much) but for the first time I feel like I can control my trades, take calculated risks, and make profits. It’s still young, but hey, you’ve got to start somewhere…
After all, I have given back to the market and finally made some profits. It feels good. Whether it can last, I don’t know, time will tell...
Basically I trade mid/major news releases at their peak.
Not on the backtrace.
I looked at the USD, EU, CAD, NZD, JPY, AUD, GBP news releases that are well known to impact the FX market (you know them: FOMC, jobless claims, durable goods, retail sales, etc...)
I check the times of news releases every day to be prepared.
10-15 minutes before the news is released, I look at the currency I want to trade (e.g. EURUSD on US news - only trade major currencies if possible) to get a sense of the long-term trend and the intraday trend.
I place a pending buy or sell order away from the current price with a stop loss of about 10-20 pips (depending on the volatility of the currency pair).
About 15 seconds before posting, I adjust both pending orders to be closer to the current price. Not too close, not too far.
Often prices will be in a tight range a few minutes before the release. I placed 2 orders on H/L in this range.
It is important to place the order as late as possible and set a strict stop loss (10-20 pips).
I'd put my finger on "closing" the trade once it gets hit, as the price could reverse immediately.
If not, I would close another pending order and set a trailing stop on the open order (for example, 10 pips every 10 pips).
If so, I'd switch it off manually - or my SL would be hit and the other one might be on.
This is my trading style. After calculation, there are no big risks (stop losses are in place) and it is possible to make good profits, albeit in a safe way and with strict trailing stops.
So far, so charming.
I just wanted to share this with you all.
Well, you can try to design an EA based on this, but that will take away all the fun. At least for me.
kind regards
X.
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