Results 1 to 9 of 9
  1. #1
    Junior Member giveittomikeyk's Avatar

    trading right before news release !!!

    i thought of a little strategy to trade right before a news release in the economic calendar
    say news release is at 4:30, and when you are hitting resistance around 4:10ish, do a 15minute Put on the currency pair
    make sure the trade expires about 5 minutes before the news release
    the logic behind this is that some traders dont like to hold on to any asset right before a dramatic change, even such as an earnings call, or important news that will severely affect the currency that will cause alot of volatility.
    so to not be exposed to that volatiliy, theres a mild sell off right before the news release.
    leave 5 minutes right before the release, just to protect yourself from bulls jumping in a little early.

    any comments? criticisms? feel free to contribute. cheers!

  2. #2
    Veteran Member randy1953's Avatar
    Quote Originally Posted by giveittomikeyk View Post
    i thought of a little strategy to trade right before a news release in the economic calendar
    say news release is at 4:30, and when you are hitting resistance around 4:10ish, do a 15minute Put on the currency pair
    make sure the trade expires about 5 minutes before the news release
    the logic behind this is that some traders dont like to hold on to any asset right before a dramatic change, even such as an earnings call, or important news that will severely affect the currency that will cause alot of volatility.
    so to not be exposed to that volatiliy, theres a mild sell off right before the news release.
    leave 5 minutes right before the release, just to protect yourself from bulls jumping in a little early.

    any comments? criticisms? feel free to contribute. cheers!
    interesting when I traded forex I would trade big news events I would do 2 trades a put and a call both with stop loss it did work well at times..I think the term is called stop loss hunting

  3. Thanks giveittomikeyk thanked this post
  4. #3
    Legendry Member milos's Avatar
    Place trade 30 minutes after the news at 9.00am by EST time zone.The news is published at 8.30am by EST time zone-New York.
    Place trade 15 minutes after the news at 10.15am by EST time zone.The news is published 10.00am by EST time zone-New York.

  5. Thanks giveittomikeyk thanked this post
  6. #4
    Junior Member giveittomikeyk's Avatar
    Quote Originally Posted by milos View Post
    Place trade 30 minutes after the news at 9.00am by EST time zone.The news is published at 8.30am by EST time zone-New York.
    Place trade 15 minutes after the news at 10.15am by EST time zone.The news is published 10.00am by EST time zone-New York.
    could you please elaborate on that??

  7. #5
    Moderator Kolyo's Avatar
    When you trade the news the catch is this – try to figure out what is the prevailing market expectation about the particular news. Than if the news is happening as expected than do not trade. If the news is surprising and not as expected than trade in the direction of the news. For example unexpected rate hike – trade in favor of the currency or unexpected rate cut – than trade against that currency.  In some cases it is more nuanced than better to avoid trading especially when there are 2 or more news at the same time, than only expert level traders can figure it out very quickly and act accordingly. In all other cases better to not trade the news.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  8. Thanks giveittomikeyk thanked this post
  9. #6
    Legendry Member Okane's Avatar
    Sounds like pure speculations to me.
    But you know what, why don't you do some demo-tests?
    Try during some time, there's high impact news almost every week
    and sometimes several times a week on different assets so just
    do some test. I think you are better off to learn support and resistance
    because news or no news it will help you pinpoint entries!
    Live Webinar: Hidden Content
    Join My Skype Group: Hidden Content

  10. Thanks giveittomikeyk thanked this post
  11. #7
    Legendry Member willyw's Avatar
    Quote Originally Posted by Kolyo View Post
    When you trade the news the catch is this – try to figure out what is the prevailing market expectation about the particular news. Than if the news is happening as expected than do not trade. If the news is surprising and not as expected than trade in the direction of the news. For example unexpected rate hike – trade in favor of the currency or unexpected rate cut – than trade against that currency. *In some cases it is more nuanced than better to avoid trading especially when there are 2 or more news at the same time, than only expert level traders can figure it out very quickly and act accordingly. In all other cases better to not trade the news.
    Kolyo is absoultely right

  12. #8
    Veteran Member Dan21's Avatar
    Quote Originally Posted by willyw View Post
    Kolyo is absoultely right
    Yeah, I've noticed the absolutely same thing.

  13. #9
    Legendry Member Michael Hodges's Avatar
    I agree with Kolyo too but add this... wait for the news to come out and then trade signals that happen after or during the initial swings that follow the news, the news can wipe out a trade if you make it before the release but also offer great signals after it is released... I choose the second scenario...

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3