FNG and DTS Trade Plans for Week 28, Jul 7 – Jul 13 2013

[Peter O]

​

Hello Fellow Traders,

On the next week (July 7 - July 13) we have 1 tradable release:

-–––————— Wednesday, July 10 —————–––-
(brief summary)​

Australia

Employment Change

9:30pm NY time

FNG + DTS

Sincerely,
Peter

 

[Peter O]

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Forex News Gun Trade Plan

Australia Employment Change - 9:30pm NY time (Wednesday, July 10)

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	Traded pair	Expected figure	Deviation trigger
	AUDUSD	-2.5 (k)	±20.0 (k)

	Buy	AUDUSD	if actual figure is or is above	17.5 (k)
	Sell	AUDUSD	if actual figure is or is below	-22.5 (k)

Expected move during first 20 minutes after the release is 30 pips or more.


--–––––————— FNG Configuration —————–––––--

Release name in FNG client: Australia Labor Force Employme

Clicks: first row is for Sell AUDUSD button, second one is for Buy AUDUSD button:




--–––––————— Detailed Trade Plan —————–––––--​

1. Start trade terminal

- Open your trade terminal and open an order sending dialog with Buy and Sell buttons.​

- Select AUDUSD pair.​

- Set your lot size - use your constant risk level on balance.​

2. Start Forex News Gun client

- Open your Forex News Gun client ( and ) and click 'Connect...'.​

- Drag the FNG window aside in order to make trade terminal's Buy and Sell buttons visible.​

3. Set a click

- Click the 'Set Click' button in the row of Australia Employment Change.​

- Double click on first row's 'Range To' cell. Type '-22.5' and hit Enter.​

- Click first row's 'Click Location' button.​

- Drag the mouse cursor over the terminal's Sell button but don't click. We just show FNG where it is by pressing 'S' key while mouse cursor is over the Sell button. You will see the screen coordinates appearing in the FNG client.​

- Double click on second row's 'Range From' cell. Type '17.5' and hit Enter.​

- Drag the mouse cursor over the terminal's Buy button but don't click. Press 'S' key there to register button location in FNG client.​

- Click OK on this 'Set Clicks' window​

4. Keep trading environment intact

- Make sure that your pc, trade terminal and FNG client is running at the time of the release: Wednesday, July 10, 9:30pm NY time.​

- Make sure that trade terminal's Buy and Sell buttons are visible at that time in order to catch screen clicks from FNG client.​

Now you have an automated news trading entry environment that will enter the market in a fraction of a second if this release figure hits the deviation. Nevertheless, don't forget to be at the PC at the time of the release in order to manage your position and to take that pips on the first spike that lasts no longer than several minutes.

I cannot tell you where to exit in relation to your entry, because entries during news vary greatly, due to different spreads, slippage, and other factors. For this reason, it’s extremely important that you review historical charts for Australia Employment Change, where the same deviation of at least 20.0 occurred. Click here to see such history: Australia Employment Change history of charts.

Once there, set filter to Difference Actual-Forecast >= 20.0 and click "Filter" to see list of charts.

If the release figure doesn't hit the deviation then FNG client won't click so you can either close it or set the next release. In this case don't forget to change currency pair if needed according to the new release details. Don't be surprised if most of the releases don't trigger. This is a conservative strategy and according to my statistics only every 4th or 5th release opens a position by hitting the deviation.

You can try to make money "while you sleep" with this. To do that, set it up on stable computer or server with stable internet connection, and pre-set your stop/loss and take/profit targets with your broker. As long as the platform and FNG remain open, your trade will be executed and exited automatically.

To get even more creative with FNG, when setting up clicks, you can set up first click instantly on let’s say "Buy". Then you can set up second click with let’s say 20 minutes delay on let’s say "Sell" to automatically close your buy trade 20 minutes later. To do that, simply put 20 into the MM field next to the second click, and identify the "Sell" location. HH stands for hours. MM stands for minutes. SS stands for seconds. MS stands for milliseconds. The software will delay any click by your specified desired time parameters.

Due to so many releases not hitting the specified parameters, and due to them being released at such different time frames, being able to set it up, and leave it on auto-pilot may be attractive to some people, though it will be more risky.

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O O O
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Diamonds Trading Signals Trade Plan

Australia Employment Change - 9:30pm NY time (Wednesday, July 10)

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	Traded currency pair	:	AUDUSD
	Initial spike duration limit	:	20 seconds
	Initial spike price action threshold	:	20 pips
	Triggering retracement percentage	:	30 %
	Retracement duration limit	:	60 seconds
	Maximum trade hold time after release	:	15 minutes
	Stop loss	:	10 pips
	Take profit	:	10 pips
	Maximum spread	:	2 pips

1. Set up single click execution on your broker platform, and if possible, pre-determine default stop/loss and default take/profit to 10 pips, so that when you click to execute your order, your platform will automatically set your stop/loss and take/profit at 10 pips from your entry price. Do not try this with brokers that don’t offer single click execution.
   
   If your platform does not allow to pre-determine default stop/loss and take/profit, then after entering the trade, simply set the stop/loss and take/profit points manually.
   
   
2. Pull up either tick, 1-second, 3-second, or 5-second chart, and at 09:29:45pm, so 15 seconds before the announcement, start paying very close attention to the price action of AUDUSD on your chart.
   
   
3. If between 09:30:00pm and 09:30:20pm, so during the first 20 seconds after the report, you see AUDUSD move up or down by 20 pips or more, then enter in the direction of the initial spike at the very first 30% retracement if it occurs in 60 seconds from release time (till 09:31:00pm) – and if spread at the time of your entry is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips.
   
   The retracement will happen within seconds. Don’t draw anything on your chart, and don’t try to get a perfect entry. As soon as you see approximately 30% retracement on your chart, compared to the initial spike, click to enter without any hesitation.
   
   If the move either up or down was less than 20 pips during the first 20 seconds, then the actual number of the report did not generate sufficient interest in the market, and you simply skip the trade. If your spread at the time of desired entry is more than 2 pips, then skip the trade.
   
   
4. If by 09:45:00pm, so 15 minutes after the report release, neither your stop/loss nor your take/profit points were hit, then close the trade automatically at market price of the time.

Previous Example: on December 5 2012, at 7:30pm, Australia Employment Change number was released, so in the first 10 seconds, the price of AUDUSD spiked up by 26.7 pips from 1.04471 to 1.04738. Then price started retracing, and within about 20 seconds retraced to 30% level of 1.04658. So you would Buy at 1.04658, set a stop/loss at 1.04558, and set a take/profit at 1.04758. 4 minutes after the report the take/profit was hit yielding 8.0 pips of profit, given that your spread at the time of the entry was at exactly 2 pips.


Be patient, and do at least 20 "second wave" trades, before getting frustrated and quitting.

Once you become good at it, you will be able to win on average 7 to 8 out of 10 trades.

Keep win to loss ratio at 1:1. Tweak it only after you are consistently profitable with 1:1.

Remember, it does not matter whether you make or lose 10 pips or 100 pips on a trade. What matters is how much money you make or lose on a trade. When risking 10 pips, simply put up 10 times more lots than you would when you risk 100 pips, and at the end you will make or lose the same amount of money. Yes, spread to pips targeted ratio matters, but these news "second wave" moves have such high probability of success that they somehow make up for the very high spread to pips targeted ratio (2 to 10), which is a small miracle in itself.

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[Maximilian!]

Keep it up, good work. Thanks

 

[wakeel86]

is it possible for anyone who's good @ mql4 to create an EA that can detect the entry conditions for the DTS parameters and have them reported on the chart as they are detected, as well as whether to enter the trade or not

I believe this should be possible....with the user inputting the broker time the news is gonna occur, as well as the necessary DTS parameters for that news

Anyone thought of this

 

[wakeel86]

-news time (broker time)

-Initial spike duration limit (starting from news time)

-Initial spike price action threshold (minimum of the input points)

-Triggering retracement percentage (taking open price into consideration as well as every recorded high or low, and working out the necessary percentage retracement)

-Retracement duration limit (starting from news time)

-In case of whipsaw, EA makes use of which is farther from the open price; high or low
----------------------------------------------
These can be included if one wants to make the EA take the trade

-Maximum trade hold time after release
-Stop loss
-Take profit
-Maximum spread

 

[nilanjan]

Thanks a lot for your updates ....good to see you.

Hi...I am from India can you pl.help me with inr pairs......where to get the updates from like usd/inr, gbp/inr, jpy/inr, eur/inr.........if you have any info. Please let me know , also pl. Let me know from where I can trade in international pairs in India ........thanks........

Sincerely,
Nilanjan.

 

[squidge42]

Hi;

Can you tell me why the data in FNG (Forecast and Previous) is quite often different to what you have in the FPA calendar. For example on this AUD trade the FNG forecast is 0 yet the Calendar is -2.5k?

 

[Peter O]

Hi;

Can you tell me why the data in FNG (Forecast and Previous) is quite often different to what you have in the FPA calendar. For example on this AUD trade the FNG forecast is 0 yet the Calendar is -2.5k?

The thing is there are several different news agencies that forecast figures and they use somewhat different surveys and expert groups, that is they come out with slightly different values. I check different sources and sometimes I use a kind of average of expectations in order to minimize risk so this is the reason of the differences you see.

 

[Peter O]

is it possible for anyone who's good @ mql4 to create an EA that can detect the entry conditions for the DTS parameters and have them reported on the chart as they are detected, as well as whether to enter the trade or not

I believe this should be possible....with the user inputting the broker time the news is gonna occur, as well as the necessary DTS parameters for that news

Anyone thought of this

Hi wakeel86,

Actually I have a zeroth version of that EA - it does most activities instead of the treader. I'd like to publish it for free on FPA's Forex Tactical Squad forum but I'd like to make it bulletproof first because it may trade real money. There are many continuously changing parameters and I'm about to figure out something that protects your money much better. For example it may cost much money for you if you just make a typo in input parameters - I need to be very cautious before I give you a tool for trade automation.

Peter

 

[squidge42]

Having trouble with FNG..lots of blank lines including the upcoming AUD trade....hope it's fixed soon