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EA based on news?

Discussion in 'Forex Trading Systems and Strategies' started by ronan chai, Jun 24, 2011.

  1. ronan chai

    ronan chai Private

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    Hi guys...i've been into forex trading for around 10months now...and i've been working on EA...
    Now it makes me wondering...is it possible to make an EA which enter position based on news interpretation?? :)
     
  2. Pharaoh

    Pharaoh Colonel

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    Possible, yes. Easy, no.

    The difficulty is two-fold. First, you need to get that news very fast or else the market will have already moved. Second, you need a broker that will fill your trades and not cancel them later - that's the problem that users of Secret News Weapon had.
     
  3. ronan chai

    ronan chai Private

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    I see....Does anyone knows why there are some EA which only work for specific pairs while there are some which can be used on all pairs???
     
  4. Romeo

    Romeo Sergeant

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    If the developer of the EA had a trading system in mind about how a specific trading pair behaves under specific circumstances, then it will work much better on that currency pair and maybe not work at all on others.

    Of course it is all based on successful back testing to get the optimal settings.

    If the developer is working on general indicator values like MACD etc, then it is more possible to work successfully with many currency pairs. But then again, you would need to back test it to find optimal settings. Next step would be to try the EA on a demo account for a few weeks, because many EAs work on some brokers and on some not!
     
  5. DJG

    DJG Corporal

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    Good day Pharaoh , do you know if MBtrading would cancel the news trades ? or has any issue with news trading ? thanks

    regard
     
  6. Pharaoh

    Pharaoh Colonel

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    They are ECN, so would probably not cancel trades. There could be issues with not getting filled, slippage, and requotes.

    If you do try some form of spike trading, do your initial tests with small lot sizes. If it goes badly with small lot sizes, it won't improve if you scale up your trades.
     

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