Many know that the important economic news may move Forex market up to 100pips and more in one go. During such a huge move there is an opportunity to make a good profit - fast and easy. But it might not be as simple as it seems, anything can happen during the news release.
Here I'll explain some strategies I use to trade News releases.
1. There are many different important news you can trade, but the main news I always try to catch are (for EUR/USD) - USD Change in Non-farm Payrolls (NFP), EUR European Central Bank Rate Decision (ECB), US Federal Reserve (FOMC).
You can find the release days in any Economic Calendar
2. NFP and ECB - they releases usually around afternoon:
- as usual I use a channel strategy: I look for a channel and draw it before 04 - 06 am GMT, place the orders buy/sell 20 pips up and 20 pips down from the top and the bottom of the channel, stop loss - 30 pips. Usually I do not place the Profit, sometimes I do but I always analyze the market and use Fibonacci levels to find the exit points.
The best way is to watch the market during News release, if the market moves too fast your orders might not work in time, so you have to control and do it manually if necessary.
So, after news release if I'm in the trade and market moves in my favor I always try to close some positions and move stop loss to a safer position or place a trailing stop.
Also, if the market moves in the morning and take me in the trade before news and continue move in my favor I try to close some positions again and move stop loss; and if I can see another channel just before news release (like I explained below) I can place additional orders.
- If there is no channel in the morning I use 5 minutes chart and try to draw channel 15 - 10 minutes before News Release and place the orders as usual.
- If there is no channel at all, I place the orders from the current price just 5 minutes before News Release.
3. FOMC - evening news and I only look for the channel on 5 minutes chart and try to draw channel 15 - 10 minutes before News Release (if no channel I use current price ) and place the orders as usual.
Example 1: There was a channel in the morning, market moved 40 pips up in our favor. You could choose the way to exit - first is safer - you could close few positions and the rest leave to continue move up to the level 138 or 161 (Fibo) changing the stop or more riskier - you could just wait and close all position at the level 138 or 161.
Example 2: There was a channel in the morning, market moved and took us in the trade (Line 1) before news release, so we could already close few positions, move the sop loss to a break even (Line 1) and before news release we could draw another channel and place additional orders. So we already have some profit and ready for a second wave (Line 2) even if the market would reverse the first trade would of been safe.
So here, after News Release we could close again few positions from our second trade after market moved around 30 pips, move stop and leave the rest (plus the rest from first trade) moving down to level 138...
Example3: Evening news - 5 minutes chart, here is the channel before News Release and same strategy - entry 20 pips down and exit using Fibonacci levels.
4. Before trading News you need to analyze the situation and what the market is focusing on at the moment, depending on the current state of the economy, the importance of different news releases changes. One month same news release could be very important in the other month not at all. Also some press conferences could be very important. There are many Forex sites provide information on what is market usually focusing on during the week, I always use them.
Example: ECB rate decision (12:45 GMT) according to the experts was not going to change and the market was focusing on press conference at 13:30 instead.
5. Usually, if the market before News Release is very quiet the move after will be very strong.
Example: Three days market was very slow, no jumps, only 40 pips between the highest and the lowest price. The result - news release moved the market up to 200 pips.
6. Usually, if there are two important news one after another and if the first was big the second probably will be weak, so it's better to avoid trading the second news or trade it carefully.
Example: First news release was around 100 pips, second was only 50 pips.
7. If the trend is very strong and News Release is expected to continue the trend I do not always place the second order.
8. Usually, main and big movement happens in first 5 minutes after News Release, if the market did not move, I would cancel all orders. If I have 2 orders I would cancel one if the other one is in good trade.
And if after News release one trade is loosing I would keep the other one and hope that the market reverse and with the next trade I would try to cover the loss and hopefully make some profit.
So, I usually trade News Releases for few minutes, but it is possible to stay in a trade for longer, the effect can lasts for few hours and days. The strategy would be the same, but you might need to look at 1H charts and change the size of the stop. You can also use it on other pairs, but anyway, always test it first.
In video my results of News trading - 300 pips, September - beginning of November 2014, it does not mean that you will get the same result, the market is changing and I don't know what it will bring me in the next months of trading. Do not forget about all the risks of Forex trading especially on News Releases.
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Comments / Комментарии
Hi, possibly, it will be a link to that EA soon, waiting for the conditions from the person who sent it to me,
Could you please send me the link of your little expert EA.???If you can share it will be great,
Mostly I trade the same news events from the Economic calendar (as you can find in this article), I do read what the experts say but usually it just helps with a decision to place the orders or not, target a bigger profit or not..., but whatever the experts say whatever the prediction is, it is always never guaranteed so you must be always careful and do not risk more, then usual.
So you made some profit, and the biggest mistake many traders do - they think it will always be that way and starting to place bigger lots and finally lose, so you just did the same thing, but you've learnt now, that you should not do that :) This is why you might notice, that I do not trade more than 1 lot and only in some cases 2 lots and do not chase big moves :)
Hi, there is no link for the EA yet, but hopefully it will be available soon :)
How do you make money traveling; I want to do the same and travel the world.
how are you?
just wondering as to what you've said these news have big changes/impacts on the market.
but I noticed for example, on your video the non farm payroll firstly shown was Bullish/uptrend and the next NFP was going down bearish/downtrend.
my question is does these news doesnt necessarily have 1 direction/trend on the changes upon news release? whats your indication to know which way it's going, up or down. I've been confused for a while with these ones.
*I'm also using tallinex broker and have been inspired by your videos & strategies to trading, very big help. thanks!
Thank you too :) It's wonderful to know that Forex is working for you, all the best and good luck with trading!!!
Yes, those are the most important news, which though sometimes could be not, depends on the situation on the market, also other news or reports can become more important than usual.
I don't usually know where the market would move during the news release unless it was something obvious which happens very rear, so that is why I place 2 orders and hope that the market would move just one direction, does not matter which, as long as it would move a lot, but sometimes it can move one way and than the other, taking us into one trade, making a loss (if it did not move enough) and then into another, usually with the profit. So, you have to be careful during the news releases and do not risk much, as you might have to take a loss before making a profit.
Last time i sow a video how to trade the news... But here whats happend.... I did a peding order before the news with 20pips up and don, with 30SL pips. But at the time the pair has a super hight volatilitie and broke the candle anddd my stop loss dosent work and i lost all my account fund, is that possible or can happend??... Im having i really bad time with my broker..
I really aprecitte if u can answer me
Hi there, you are welcome :)
During the news anything can happen, so it's possible that the orders did not work.
I am new to fx and want to learn from you.
Can I follow you when you open a trade I can follow you at same time
open a same trade, I learn it from internet called copy trades
mt4 has the function.
Hi, I still can not make an agreement about an EA with a programmer, he is not responding very often, but I hope we still will figure out something at one point...
I always followed your videos. It's very enlightening. Thanks for sharing with the rest of us.
When you read what the experts say, do you consult any source in particular that you think is more reliable than the others?
I wish you have a very good year
Hi, thank you, I usually read just what experts say about upcoming news, from different sources, I do not know which is more reliable or not, as I still trade using my own strategies.
----------------------- Heitch ------------------------
Hi, I use dailyfx.com Economic calendar.
Jack (Laserbeam 002)
Jack (laserbeam 002)
I've started trading now, yes, also I'm testing some new EAs. I hope to find some time to make some new videos :)
Glad you are making good trades, as for that one, it probably was spread.
Happy trading :)
I am sukhairi from Malaysia. Actually what time you draw the channel for Malaysian time. Just for information if malaysian time is 9pm USA time is about 8 am in the morning.
Appreciate if you could teach me to become a good trader
Thanks and best regards
Jack (laserbeam 002)
Usually I look for a channel before Europe/London sessions open so before 5-6 am GMT, for Malaysia I believe it should be around 1pm.
well, I do look at different time-frames, as I always try to identify the trend and looking for patterns. If you would run a trade for few days and may be weeks, yes, you would look on a larger time-frames, and possibly catch a good long-lasting movement, but if you only look for a quick trade (scalping) then 15 min chart is good, lower is too risky, higher is too much for a day trading, just as you mentioned, you will probably miss a good trade.
Because of the slippage I experienced a total loss when there should have been profit.
By the way, thanks for all your great work here.
Hi, during News anything can happen, if you use true ECN broker slippage requirement will not work, because you trade against real market, broker does not control it...
Which method did you use? It is always better if there is a consolidation (channel) before Important News release you should be careful and analyze previous day (days) and if the market actually waiting for that news release...
i was watching your videos quite a few days and i noticed that you're using a EA for your trades i appreciate that if you explain a little bit about this particular EA and what is its name and how can we download or purchase it.
thank you for all of your good videos
I have seen on you video you are using a small EA for setting The Buy Or Stop loss. Where is it possible to find it. It would be appreciated.
Thanks for your answer and thank you for sharing with you time and energy.
All the best
Thanks for all your help with trading. I consider you my trading 'guru'.
I have a problem with Tallinex on news trading. So far I have made 4 trades with them on news releases I have have had NINE (9) PIPS of slippage on every one of those trades, leaving me with only about 1 PIP of profit. When looking at your trades I have never seen ANY slippage. Have you had a similar experience with slippage?
I got that again today with Nonfarm Payroll.
I think you couldn't be profitable with this strategy on long run. This is my opinion. I am trading only on big deviation: https://youtu.be/FrH_P6j8NAc
Thank you a lot. I am still watching your videos and your strategies.
Is your strategies on nwews trading still work, because I can see you posted them some years ago?
Thanks in advance