Forex News Trading Plans for Week 2, Jan 8 – Jan 14 2017

Peter O

Special Consultant to the FPA
Messages
3,637
What is news trading? How does forex news trading work?

Forex News Trading can be extremely profitable if you have an understanding of fundamental analysis and have access to low latency forex trading software. Sounds too complex or expensive? Do not worry, Forex Peace Army analyst will help you to identify high-probability tradable economic news reports and advise on the trading strategy. Best of all: Forex News Gun - automated forex trading software is free for all. You find all details on Forex News Gun forum and if you want make pips easier you can find additional tools at Forex Tactical Squad.

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Hello Fellow Traders,

On this week (January 8 - January 14) we have 2 tradable releases:


⋯⋯⋯⋯⋯ Monday, January 9 ⋯⋯⋯⋯⋯
(brief summary)

AustraliaRetail Sales7:30pm NY timeFNG + DTS


⋯⋯⋯⋯⋯ Friday, January 13 ⋯⋯⋯⋯⋯
(brief summary)

USACore Retail Sales8:30am NY timeFNG + DTS



Cheers,
Peter
 
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Peter O

Special Consultant to the FPA
Messages
3,637

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Forex News Gun Trade Plan​

Australia Retail Sales ⋯ 7:30pm NY time (Monday, January 9)

⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

Traded pairExpected figureDeviation trigger
AUDUSD0.4 (%)±0.5 (%)
BuyAUDUSDif actual figure is or is above0.9 (%)
SellAUDUSDif actual figure is or is below-0.1 (%)

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


⋯⋯⋯⋯⋯ FNG Configuration ⋯⋯⋯⋯⋯​

Release name in FNG client: AUD Retail Sales SA

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 Retail Sales.​
- Double click on first row's 'Range To' cell. Type '-0.1' 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 '0.9' 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: Monday, January 9, 7:30pm 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 Retail Sales, where the same deviation of at least 0.5 occurred. Click here to see such history: Australia Retail Sales history 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.

⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯
⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

Diamonds Trading Signals Trade Plan​

Australia Retail Sales ⋯ 7:30pm NY time (Monday, January 9)

⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

Traded currency pairAUDUSD
Initial spike duration limit15 seconds
Initial spike price action threshold15 pips
Triggering retracement percentage30 %
Retracement duration limit90 seconds
Maximum trade hold time after release15 minutes
Stop loss10 pips
Take profit10 pips
Maximum spread2 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 07:29:45pm, so 15 seconds before the announcement, start paying very close attention to the price action of AUDUSD on your chart.

  3. If between 07:30:00pm and 07:30:15pm, so during the first 15 seconds after the report, you see AUDUSD move up or down by 15 pips or more, then enter in the direction of the initial spike at the very first 30% retracement if it occurs in 90 seconds from release time (till 07:31:30pm) – 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 15 pips during the first 15 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 07:45:00pm, 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 May 6 2012, at 7:30pm, Australia Retail Sales number was released, so in the first 10 seconds, the price of AUDUSD spiked up by 22.2 pips from 1.01126 to 1.01348. Then price started retracing, and within about 25 seconds retraced to 30% level of 1.01281. So you would Buy at 1.01281, set a stop/loss at 1.01181, and set a take/profit at 1.01381. 15 minutes after the report neither take/profit nor stop/loss were hit so position was closed manually at 4.8 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.


⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​
 
Last edited by a moderator:

Peter O

Special Consultant to the FPA
Messages
3,637

⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

Forex News Gun Trade Plan​

USA Core Retail Sales ⋯ 8:30am NY time (Friday, January 13)

⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

Traded pairExpected figureDeviation trigger
USDJPY0.5 (%)±0.5 (%)
BuyUSDJPYif actual figure is or is above1.0 (%)
SellUSDJPYif actual figure is or is below0.0 (%)

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


⋯⋯⋯⋯⋯ FNG Configuration ⋯⋯⋯⋯⋯​

Release name in FNG client: US Adjusted Retail Sales Less Autos

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



⋯⋯⋯⋯⋯ Detailed Trade Plan ⋯⋯⋯⋯⋯​

1. Start trade terminal
- Open your trade terminal and open an order sending dialog with Buy and Sell buttons.​
- Select USDJPY 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 USA Core Retail Sales.​
- Double click on first row's 'Range To' cell. Type '0.0' 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 '1.0' 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: Friday, January 13, 8:30am 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 USA Core Retail Sales, where the same deviation of at least 0.5 occurred. Click here to see such history: USA Core Retail Sales history 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.

⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯
⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

Diamonds Trading Signals Trade Plan​

USA Core Retail Sales ⋯ 8:30am NY time (Friday, January 13)

⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

Traded currency pairUSDJPY
Initial spike duration limit15 seconds
Initial spike price action threshold8 pips
Triggering retracement percentage35 %
Retracement duration limit40 seconds
Maximum trade hold time after release15 minutes
Stop loss8 pips
Take profit8 pips
Maximum spread2 pips


  1. Set up single click execution on your broker platform, and if possible, pre-determine default stop/loss and default take/profit to 8 pips, so that when you click to execute your order, your platform will automatically set your stop/loss and take/profit at 8 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 08:29:45am, so 15 seconds before the announcement, start paying very close attention to the price action of USDJPY on your chart.

  3. If between 08:30:00am and 08:30:15am, so during the first 15 seconds after the report, you see USDJPY move up or down by 8 pips or more, then enter in the direction of the initial spike at the very first 35% retracement if it occurs in 40 seconds from release time (till 08:30:40am) – and if spread at the time of your entry is at 2 pips or less. Set stop/loss at 8 pips, and set take/profit at 8 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 35% 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 8 pips during the first 15 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 08:45:00am, 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 July 16 2012, at 8:30am, USA Core Retail Sales number was released, so in the first 10 seconds, the price of USDJPY spiked down by 8.4 pips from 79.032 to 78.948. Then price started retracing, and within about 35 seconds retraced to 35% level of 78.977. So you would Sell at 78.977, set a stop/loss at 79.057, and set a take/profit at 78.897. 3 minutes after the report the take/profit was hit yielding 6.0 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.


⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​
 
Last edited by a moderator:

mbehr

Recruit
Messages
1
Hello,
Please can anybody tell me, where the server of the FNG is located. For better performance i would like to use a VPS.
I would appriciate, if somebody could tell me. Thank you.
 

dxterr

Recruit
Messages
3
Hi,

Can some one help me? I got "Server not responding" error when try to use FNG. Actually i do no use this app, but i manage the internet connection of people using it. Our connection to server is OK when i test with ping/traceroute, but for some reason server do not respond.

Here is my original post about this problem - http://www.forexpeacearmy.com/community/threads/questions-and-answers.23011/page-40
Unfortunately there is no activity on that thread.
 

jair rincon

Private, 1st Class
Messages
38
Good day Mr, Peter
FNG is down again, can you reboot the server please?
would be amazing if FNG works properly tomorrow for trade Core Retail Sales!
 
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