Peter O

Special Consultant to the FPA
Messages
3,638

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.

-–––———————————————————————————————————–––-

Hello Fellow Traders,

On this week (October 6 - October 12) we have 3 tradable releases:


-–––————— Wednesday, October 9 —————–––-
(brief summary)
AustraliaEmployment Change8:30pm NY timeFNG + DTS


-–––————— Thursday, October 10 —————–––-
(brief summary)
UKInterest Rate7:00am NY timeFNG


-–––————— Friday, October 11 —————–––-
(brief summary)
CanadaEmployment Change8:30am NY timeFNG



Sincerely,
Peter
 
Last edited:

Peter O

Special Consultant to the FPA
Messages
3,638

--–––––——————————————————————————————————————–––––--

Forex News Gun Trade Plan

Australia Employment Change - 8:30pm NY time (Wednesday, October 9)

--–––––————————————————————–––––--​

Traded pairExpected figureDeviation trigger
AUDUSD15.0 (k)±20.0 (k)
BuyAUDUSDif actual figure is or is above35.0 (k)
SellAUDUSDif actual figure is or is below-5.0 (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 '-5.0' 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 '35.0' 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: Wednesday, October 9, 8:30pm 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.

--–––––——————————————————————————————————————–––––--
O O O
--–––––——————————————————————————————————————–––––--

Diamonds Trading Signals Trade Plan

Australia Employment Change - 8:30pm NY time (Wednesday, October 9)

--–––––————————————————————–––––--​

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 08:29:45pm, so 15 seconds before the announcement, start paying very close attention to the price action of AUDUSD on your chart.

  3. If between 08:30:00pm and 08:30:20pm, 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 08:31:00pm) – 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 08:45:00pm, 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.


--–––––——————————————————————————————————————–––––--​
 
Last edited by a moderator:

Peter O

Special Consultant to the FPA
Messages
3,638

--–––––——————————————————————————————————————–––––--

Forex News Gun Trade Plan

UK Interest Rate - 7:00am NY time (Thursday, October 10)

--–––––————————————————————–––––--​

Traded pairExpected figureDeviation trigger
GBPUSD0.50 (%)±0.25 (%)
BuyGBPUSDif actual figure is or is above0.75 (%)
SellGBPUSDif actual figure is or is below0.25 (%)

Expected move during first 30 minutes after the release is 40 pips or more.


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

Release name in FNG client: UK Bank of England Official Ba

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




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

1. Start trade terminal
- Open your trade terminal and open an order sending dialog with Buy and Sell buttons.​
- Select GBPUSD 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 UK Interest Rate.​
- Double click on first row's 'Range To' cell. Type '0.25' 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 '0.75' 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: Thursday, October 10, 7:00am 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 UK Interest Rate, where the same deviation of at least 0.25 occurred. Click here to see such history: UK Interest Rate history of charts.

Once there, set filter to Difference Actual-Forecast >= 0.25 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.

--–––––——————————————————————————————————————–––––--​
 
Last edited by a moderator:

Peter O

Special Consultant to the FPA
Messages
3,638

--–––––——————————————————————————————————————–––––--

Forex News Gun Trade Plan

Canada Employment Change - 8:30am NY time (Friday, October 11)

--–––––————————————————————–––––--​

Traded pairExpected figureDeviation trigger
CADJPY15.3 (k)±20.0 (k)
BuyCADJPYif actual figure is or is above35.3 (k)
SellCADJPYif actual figure is or is below-4.7 (k)

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


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

Release name in FNG client: STCA Canada Net Change in Labo

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




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

1. Start trade terminal
- Open your trade terminal and open an order sending dialog with Buy and Sell buttons.​
- Select CADJPY 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 Canada Employment Change.​
- Double click on first row's 'Range To' cell. Type '-4.7' 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 '35.3' 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, October 11, 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 Canada Employment Change, where the same deviation of at least 20.0 occurred. Click here to see such history: Canada 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.

--–––––——————————————————————————————————————–––––--​
 
Last edited by a moderator:

Joh

Sergeant Major
Messages
976
Hi Peter,

Please be patient with me i am not computer savi - now i am doing exactly as you wrote and once got it to light up, so assume i am doing it right!- but for some reason now? i do not get the same parameters/numbers as yours- like 853 and 416 as i did before. As i do it step by step i am getting different numbers. What am i missing or doing wrong?
 

dimuster

Recruit
Messages
5
Hi Peter,

Please be patient with me i am not computer savi - now i am doing exactly as you wrote and once got it to light up, so assume i am doing it right!- but for some reason now? i do not get the same parameters/numbers as yours- like 853 and 416 as i did before. As i do it step by step i am getting different numbers. What am i missing or doing wrong?

853 and 416 are Peter's screen coordinates for Buy & Sell buttons. You will definitely get different values for your Buy & Sell buttons.
 

Peter O

Special Consultant to the FPA
Messages
3,638
Yes, the point is to specify Buy or Sell buttons wherever they are. To get more familiar with clicking function you might use Test button that clicks immediately to show what would happen if a triggering number arrived (be sure not to test on live account).
 

Peter O

Special Consultant to the FPA
Messages
3,638
ECNs tend to be better, however, spread is wider anyway. Nevertheless, much depends on connection speed - it's often the case that the spread is normal but the slippage is more. So it's worth to do experiments. Anyone who has experience with these please share with us.
 
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