News trading

Hi there,

anybody here trading news with straddle or other software? Thanks.

I traded news a lot and it can be very profitable. However, you will need to put some money on the table for getting the news data fast, plus you will need a broker who can place your orders on the market even when the price moves like crazy.

Straddle seems to be a smart way to trade news in theory.

The problem is that all brokers widen their spread for a couple of seconds while the news is releasing and so both of your trades can be trigerred and as you get tight sl too... you can end up with 2 loser trades.

If market goes in one direction, market can gap and you aren't trigerred or your entry is so uglly (delayed price) because of low Liquidity while you're being executed.

I gave up this strategy a long time ago, but nowadays, I'm working on a different approach to trade news... (I prefer not tell much about it yet.)

good news

Only 2 trades triggered by news this week and both closed at breakeven... bad news for my strategy.

can someone explain to me how the bond market affects the currency market? Thanks.

yep! I made crazy money on GBP election with straddles one got bounced out but I think there was 2000 pip potential on all GBP CROSSES within 1 Hour+ full retracement in a couple days perfect fibonacci abcd which I missed judged poorly. give the entry some fir initial opposite bounce room and let it rip. Almost all economic news is leaked without effect being more of an efficient market hypothesis. Often keep a rolling straddle on whenever there is any potential for random craziness, well thats always. IM OFF TO IMPLEMENT ONE. its all temporary and always retraces I hear. PANIC EMOTION - not fundamental

what news could give good profit?

extra4x posted:
what news could give good profit?

I think there is a way to trade NFP... So this strategy is only activated once a month... It takes time to test.
Otherwise you can trade any high impact news... we never know how intense will be the price movement.

High impact news, like NFP, CPI, Retails sales, just check news calender. I traded mainly straddle, but at the moment is it impossible to find broker who gives me good fill and low slippage.

bergax posted:
High impact news, like NFP, CPI, Retails sales, just check news calender. I traded mainly straddle, but at the moment is it impossible to find broker who gives me good fill and low slippage.

Don't bother to look for... they all play the low liquidy provider game to widen spread so any straddle strategy is useless.

Well actually, if there is any move on news it happens a bit after any news release when the knee jerking is over and the market had time to digest it, especially if it's something that's fundamentally earth shattering and you're in for a big fundamental move. Can take up to 15 minutes to get going.

Wait till spreads return to normal and then straddle the highs and lows of the knee jerks.

NFP has been useless for years now. I call it a dead fish event. Flip-flop. Flip-flop. Dead. I can't even remember last time NFP resulted in a move and normally by the time it comes out I'm drinking ice cold beer somewhere (SE Asian time zone). Not even worth watching it.

theHand posted:
NFP has been useless for years now. I call it a dead fish event. Flip-flop. Flip-flop. Dead. I can't even remember last time NFP resulted in a move and normally by the time it comes out I'm drinking ice cold beer somewhere (SE Asian time zone). Not even worth watching it.

The way NFP moves is kinda similar most of the time, so indeed, Straddle doesn't look suitable for this... but the strategy I have coded should work. It would have worked for the last one in April... I backtested it, now I'm waitingend of May to check this out.

@CrazyTrader

Meanwhile at least 500 0000 - 1 000 000 ticks/value changes a day slip by....why spend your time and energy on something that happens once a month for a few minutes ?

It be much more productive to try write something that can work all those value changes. Just saying...

theHand posted:
@CrazyTrader

Meanwhile at least 500 0000 - 1 000 000 ticks/value changes a day slip by....why spend your time and energy on something that happens once a month for a few minutes ?

It be much more productive to try write something that can work all those value changes. Just saying...

Well you are right, I coded this strategy on 1 afternoon, so if the strategy works only sometimes but for years, i reckon it worthes to code it.
Today, I'm very pleased to see that the strategy worked on NZD news while I was sleeping.
50 pips on GBPNZD and same on EURNZD

Good luck.

I'm not a fan of News trading.

News traded this week so far...

good trading bro