Post-release trading strategies

Stop news trading

Forex Strategies Forex News Trading Strategy High impact Forex news trading strategy also called news volatility straddle was developed specifically to trade important Forex news with as little risk as possible.

It can be used only for influential Forex news releases such as Stop news trading GDP, non-farm payrolls, or interest rate decisions.

stop news trading

Although all currency pairs react to such news, the USD-based currency pairs show the best result due to low spread and high liquidity. Features Circumvents spread widening and slippage problems. Fundamental basis for a trade.

stop news trading

Simple setup. Important news events are quite rare. A broker with low spreads and high quality trade execution is required.

Stop hunting is a strategy that attempts to force some market participants out of their positions by driving the price of an asset to a level where many individuals have chosen to set stop-loss orders. The triggering of many stop losses at once typically creates high volatility and can present a unique opportunity for investors who seek to trade in this environment.

How to Trade? Choose an important news release that has a high impact on Forex pairs.

Stock trading: What is stop loss order?

Open Buy and Sell positions one minute before the scheduled news release. It will help you to protect the trade from slippage and widened spreads.

stop news trading

Set stop-loss for both positions to standard pips depending on the expected news volatility. It will provide the necessary risk-to-reward ratio.

Cory Mitchell Updated November 25, Slippage inevitably happens to every trader, whether they are trading stocks, forex foreign exchangeor futures. Slippage is what happens when you get a different price than expected on an entry or exit from a trade. In the fraction of the second it takes for your order to reach the exchange, something might happen or the price could change. To help eliminate or reduce slippage, traders use limit orders instead of market orders. A limit order only fills at the price you want, or better.

The news volatility will most probably trigger one trade's stop-loss and the other's take-profit. Move the surviving position's stop-loss to breakeven once the paper profit reaches original stop-loss distance.

What is a guaranteed stop-loss order?

Auto earnings bitcoin any positions left one hour after the news. If your broker uses "first in, first out" FIFO execution model, it is still possible to trade news with this strategy. When one pending order is triggered, the other one should be canceled.

stop news trading

Unfortunately, it suffers from additional exposure to widened spreads and slippage.