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  1. #1
    Junior Member giveittomikeyk's Avatar

    Trading the Economic Calendar !!!

    Hello guys! I'm totally new to the forum and I apologize if this question has been asked before, but...
    I would like to hear everyone's thoughts on setting the appropriate expiry times when trading the economic calendar.
    According to my first several attempts in trading events such as:

    -GDP
    -Average earnings index
    -purchasing managers index
    -unemployment claims
    -Employment change
    -retail sales report

    What are your methodologies on setting up the appropriate expiry times?

    personally, I try to see if the actual is far from forecast, and trade about 60seconds, 5 minutes, 15 minutes
    some of the problems i faced was setting too long or short of expiry times,
    and also sometimes the joyride ends to quickly, as short as a minute,
    and also sometimes, the price would surge up fast, and the bears jump in for profit taking and sends the price significantly down relatively early even though one would expect a series of bullish candles from the given results of the event.
    i realized that i find it unpredictable and too risky to improvise my expiry times with the market according to every single scenario, despite that when i keep hearing that trading the economic calendar is rather an awesome strategy to trade.

    any comments or words of wisdom would be appreciated. cheers!

  2. #2
    Legendry Member Okane's Avatar
    Hey, have you tried using stockpair's "KIKO" that requires no expiry?
    I usually use that. There are two "spans" high and low span meaning the "barrier" can
    be set either higher up or lower closer to your entry.
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  4. #3
    Master Member Bogdan G's Avatar
    The impact of news is too often irregular. The rule of thumb is that a higher-than-expected value strengthens the currency and opposite for a lower-than-expected (inverse that for unemployment) but in reality, things are a lot more complicated.
    Take Okane's advice. I think it's a good one. Try on demo or with very low amounts and see if you have success
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

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  6. #4
    Junior Member giveittomikeyk's Avatar
    hmm very interesting concept. however, having no expiry time could potentially expose you in to the risk that the price can go out of the money at any time given in the future.

  7. #5
    Specialist Member Million Dollar Baby's Avatar
    Apart from setting expiry times, trading the news require very good understanding of overall perceptions about an indicator. Usually market has already moved based on "better than expected" or "weaker than expected" results. Similarly market may react to a news later than expected. So going for "short term news trading" could be extremely risky as in short time frame market can go either way irrespective of "news".

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  9. #6
    Rookie Member Rippie's Avatar
    I read somewhere that trading the economic calendar could be a bit hit and miss and you would normally wait to see direction as a result of the news and then you max have 30 min to trade where you ride that wave. Also you would probably set up 4-5 trades on different currency pairs without going over the 5% per trade and 15% total capital.

    Now i have not tried this yet and need to try this on demo platform first

  10. #7
    Legendry Member Michael Hodges's Avatar
    Yeah, like they've been saying, the impact of news is too irregular to say "I'll buy a call if this, I'll buy a put if that". However, you need to keep up with the data to understand what signals you are seeing in the market.

  11. #8
    Legendry Member milos's Avatar
    Trading the news is very risk trading.It is needed to know a lot of data,market condition and market sentiment.It can be traded only if economic data better/worse than expected.

  12. #9
    Legendry Member Michael Hodges's Avatar
    Best advice is just to choose an event you would like to trade, get an analysis of market action going into the event, watch reaction and then take a signals.

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