Trading on the news

[Miles]

Good morning Ra, I'm new to news trading. Have you got a written strategy that I can see please?
With many thanks and best wishes
Miles

[raa]

Hi Miles, if you read a couple of first pages of this thread you will have it.

[capsmart]

I think they could become good news traders. They have all they need.
Drone Controllers - YouTube

[raa]

Haha, more appears to make quite good "STOP HUNTERS" and broker's "CLIENT ASSAULT" team

News traders are more like racers rather bombers: they go behind a leader looking for any gap to sneak and take the win right before the finish

[raa]

Scooped 5.2 less the costs pips today on UK RetSales, mostly so little as I missed few great opportunities right after the release as spread returned to normal very fast. Range Bar indi works fine on MT4, totally well for news trading, VTC is ok but having too many steps to setup an order (clicking on the confirmation, moving the line) made me miss few opportunities. I think I will put in some scripts on hot-keys to setup pending buy and sell orders in some 3-5 pips from the current price and use VTC to edit them if needed. That should make sufficient speed possible.

[raa]

+5.2 pips on USDCAD on one trade, comissions are 0.5, so net is +4.7 pips

it worked nice as CAD is a slow but stead mover

[raa]

Next week is a new month, April's been traditionally good to me, so finger crossed! Actually we will have around 70% of all important releases in the first week this is why it is important not to lose any opportunity and trade is like there is no tomorrow! Actually if done properly it's enough to trade only the first week of the month and 2-3 releases in the others 3-4 weeks. And enjoy life.

How I am going to trade it: I will be trading it live on LMAX, in size, using MT4, using my new tools. The only minor issue is that Artur did not yet release a promised update for the VTC, but it's not a major blow. I will do some scripts on Monday to help me open orders quicker and modify them automatically. If someone here will be interested I will share the scripts.

[raa]

Finally some trades! I got bit late for trading (blame Discovery HD channel!) so missed the first huge move but later it provided with a lot of opportunities.

Stats: made 10 trades, total result is 14.2 pips but commissions take away around 6.7 pip away, so net result is 7.5 pips. Not too shabby but if I managed to come earlier I would have easier pips to grab. As usual I used stop loss of 3 pips, actually I got stopped out 3 times to full stop, actually two of them I could cut around zero or some 1.5 pips loss each. When trade is not going right into profit, time to cut. The problem here it lost that furious momentum when I started to trade. And I missed one big run taking only 6.8 pips when it went into 10 or more into profit.

As I am using MT4 with a range bar plugin I can pull up my trades graphical history as it doesn't pain correctly. I put this trade explorer chart from MyFXBOOK instead, but of course it shows not too much since it is also M1 chart.

[raa]

Tomorrow we have UK Service PMI, used to be one of the best reports, but not anymore. Hopefully it will provide with some volatility but I don't like UK trades with my news flow method as the cost of trading is very high: you pay highest commission (around 0.9 pips) and have higher spread of around 1.0-1.1 pips, i.e. about 2 pips in total, when EU trades cost around 1.2 total and AU trades have lowest commission while spread is just a bit higher than eu. CAD is very cheap on commission with a spread similar to GU. And most advantageous is UJ as margin is smallest, commission is smallest at 0.5 pips and pip value is the highest at around 12 usd per pip. It makes trading UJ almost 2 times better than trading GU. So I will only engage if market does move nicely.

Other than that, tomorrow is a busy day: we have ECB rate decision (could be some pips there but not very likely), ADP employment - usually ignored in general but on big deviation from expected value market can just blow, so it's all or nothing trade, worth watching, and we have ISM non-Man PMI from US, probably the only report from USA related to sales that worth watching, in case of big deviation it may give some moves on USDCAD that can be tradeable.

[raa]

That was more than silly: a deviation that caused easy 30+ pips a year ago produced... nothing. Spread jumped and we got a 3-pips wide whipsaw. UK is finished. Looking forward towards ECB min bid rate today.