Internet connection speed for trading the news spikes.

[HotIce]

Pending orders are a good way to deal with connection speed issues, but poor connection speed could leave you in a bad situation if you decide you need to manually close an order instead of waiting for it to hit SL.

Yes, completely agree if we want to trade in news then the best way is by pending orders. It does not matter how fast our internet is but the jump up in chart is impossible to catch and even in just case we are able to press the buy or sell button we are likely to receive requotes and even if we set the deviation to the Max, it still is not going to change anything due to such violate movement.

 

[downtrend]

Poor connection of good connection, you cannot escape if there is a slippage from broker's side. In many major news, these days, brokers with variable spread increases the spread a lot and there are a lot more slippage than past on many brokers now.

 

[OlafYom]

I wonder if a broker with a minimum slippage problems exists.

 

[bigdolly]

Trading on news is quite tricky and dicey quest, particularly for retail traders. To ensure consistent gains there you have to have substantial technological advantage, which unfortunately can't offer any retail platform. Even you put pending order at the time of economical release it won't be filled because of tiny liquidity at first seconds after it. The only option to trade news is to enter before news release in direction you suppose market will get after news come out.
And you won't definitely be ahead with internet connection speed improvements so don't bother with it.
Good luck, fundamental fellow!

 

[NicholasM]

using pending orders is definitely a good way of news trading, but still you could get caught on the wring end of a price gap. I have seen situations where a price gap is created only for the following candle to go against the movement. i.e a downward price gap followed by a bullish candle. This means that your pending order (short) in this case could be executed only for the price to rise and execute your stop loss level within minutes. The good thing is that this rarely happens.

 

[downtrend]

using pending orders is definitely a good way of news trading, but still you could get caught on the wring end of a price gap. I have seen situations where a price gap is created only for the following candle to go against the movement. i.e a downward price gap followed by a bullish candle. This means that your pending order (short) in this case could be executed only for the price to rise and execute your stop loss level within minutes. The good thing is that this rarely happens.

I had used pending orders with great success in past but from early 2014 and mid 2014 its a very difficult method to follow. As most broker are now getting slippage and your SL is skipped to get a bigger loss that SL.

 

[Enayess]

The most important thing I would say is stability and latency here, people used to trade on dial-up and bad ones. I mean here no disconnects and low pings. Now after years later lot of people in the world already have Gigabit or so per second connections, so speed is even more not a problem, however stability is.

 

[Olieng38]

I bet it should be something for like 100mbps/sec and no less, but this connections are not that possible everywhere and really cost a lot so I am demanding ISP's to make it for me in private order whenever possible and I hope it will work out anyway.

 

[bigdolly]

Success in trading news or volatility events doesn't depend on Internet Connection. You can decrease the latency between your PC and server to 0 ms (using collocation VPN for example), but you can't really avoid execution lag that happens when the broker server sends the order to LP. It often takes time for LP to execute order (because it can be busy executing other orders) and news orders can still executed with latency.