Trading the news?

[sphanlon]

I have a basic system I've been using and it works pretty well. But it doesn't get into how to identify what pairs to trade or not trade based on the specific news and its impact history. Can anyone share a strategy or system they know that teaches this?

 

Thanks

[jsonc]

a forex "guru" name dustin pass does news trading. it really just a straddle strategy.

[iwjw]

Henry Liu has kind of "guru" status...he's posting his comments for upcoming news on the FPA board

[jsonc]

i get email updates on new trades from him. don't used it tho.

[litxus82]

Dustin pass doesn't use straddle, idea is to get news very fast and enter at market in mili seconds (before everyone else) and it is done by their software. For Henry Liu, I'm not sure some say his calls are good.

[Freddie]

I have a basic system I've been using and it works pretty well. But it doesn't get into how to identify what pairs to trade or not trade based on the specific news and its impact history. Can anyone share a strategy or system they know that teaches this? Thanks

 

Take a look at the London Breakout thread, Kraven does news and explains it. I will also be bringing in some news trading systems myself.

 

Freddie

[⭐ godl1ke]

The most simple way to trade the news is the straddle trade. As nobody can accurately predict which way the market will go (at least nobody that doesn't work for a Bank) the most sensible approach is to straddle the price leading up to the release. I've used a 40 pip channel with success in the past. By that I mean only trade if the market has been in a 40 pips channel leading up to the news. Only trade the high impact news items. You can check on the FF calendar or the Babypips calendar as to which ones are high impact. With respect to the pairs to use, only trade the ones impacted by the news. May sound obvious, but you'd be surprised at what I've seen people do. So if it's a GBP release, look to trade the Cable or GBPEUR (although this second pair doesn't tend to move as quickly). What I used to do is get the channel in place, then change to the 1 minute chart to see what is actually happening as with high impact news releases they tend to move quickly. Wait for the initial move, then the retrace, then enter for some pips. You have to watch carefully though as the banks like to push price in one direction to catch people, then whipsaw it the other way to stop them out.