Forex News Trading Plans for Week 44, Oct 26 – Nov 1 2014

[Peter O]

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 26 - November 1) we have 4 tradable releases:

-–––————— Wednesday, October 29 —————–––-
(brief summary)​

	USA	Interest Rate	2:00pm NY time	FNG
	New Zealand	Interest Rate	4:00pm NY time	FNG

-–––————— Thursday, October 30 —————–––-
(brief summary)​

USA

GDP

8:30am NY time

FNG + DTS

-–––————— Friday, October 31 —————–––-
(brief summary)​

Canada

GDP

8:30am NY time

FNG + DTS

Sincerely,
Peter

 

[Peter O]

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

Forex News Gun Trade Plan

USA Interest Rate - 2:00pm NY time (Wednesday, October 29)

--–––––————————————————————–––––--​

	Traded pair	Expected figure	Deviation trigger
	USDJPY	0.25 (%)	±0.05 (%)

	Buy	USDJPY	if actual figure is or is above	0.30 (%)
	Sell	USDJPY	if actual figure is or is below	0.20 (%)

Expected move during first 15 minutes after the release is 50 pips or more.


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

Release name in FNG client: US Federal Funds Target Rate

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 Interest Rate.​

- Double click on first row's 'Range To' cell. Type '0.20' 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 '0.30' 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 29, 2:00pm 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 Interest Rate, where the same deviation of at least 0.05 occurred. Click here to see such history: USA Interest Rate 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.

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

Forex News Gun Trade Plan

New Zealand Interest Rate - 4:00pm NY time (Wednesday, October 29)

--–––––————————————————————–––––--​

	Traded pair	Expected figure	Deviation trigger
	NZDUSD	3.50 (%)	±0.25 (%)

	Buy	NZDUSD	if actual figure is or is above	3.75 (%)
	Sell	NZDUSD	if actual figure is or is below	3.25 (%)

Expected move during first 20 minutes after the release is 50 pips or more.


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

Release name in FNG client: New Zealand Official Cash Rate

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




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

1. Start trade terminal

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

- Select NZDUSD 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 New Zealand Interest Rate.​

- Double click on first row's 'Range To' cell. Type '3.25' 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 '3.75' 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: Wednesday, October 29, 4:00pm 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 New Zealand Interest Rate, where the same deviation of at least 0.25 occurred. Click here to see such history: New Zealand Interest Rate 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.

--–––––——————————————————————————————————————–––––--​

 

[Peter O]

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

Forex News Gun Trade Plan

USA GDP - 8:30am NY time (Thursday, October 30)

--–––––————————————————————–––––--​

	Traded pair	Expected figure	Deviation trigger
	USDJPY	3.0 (%)	±0.5 (%)

	Buy	USDJPY	if actual figure is or is above	3.5 (%)
	Sell	USDJPY	if actual figure is or is below	2.5 (%)

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


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

Release name in FNG client: US GDP Annualized

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 GDP.​

- Double click on first row's 'Range To' cell. Type '2.5' 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 '3.5' 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: Thursday, October 30, 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 GDP, where the same deviation of at least 0.5 occurred. Click here to see such history: USA GDP 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.

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

Diamonds Trading Signals Trade Plan

USA GDP - 8:30am NY time (Thursday, October 30)

--–––––————————————————————–––––--​

	Traded currency pair	:	USDJPY
	Initial spike duration limit	:	30 seconds
	Initial spike price action threshold	:	10 pips
	Triggering retracement percentage	:	40 %
	Retracement duration limit	:	90 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 08:29:45am, 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 08:30:30am, so during the first 30 seconds after the report, you see USDJPY move up or down by 10 pips or more, then enter in the direction of the initial spike at the very first 40% retracement if it occurs in 90 seconds from release time (till 08:31:30am) – 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 40% 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 10 pips during the first 30 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 October 26 2012, at 8:30am, USA GDP number was released, so in the first 50 seconds, the price of USDJPY spiked up by 13.9 pips from 79.847 to 79.986. Then price started retracing, and within about 30 seconds retraced to 29% level of 79.945. So you would Buy at 79.945, set a stop/loss at 79.845, and set a take/profit at 80.045. 3 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.

--–––––——————————————————————————————————————–––––--​

 

[Peter O]

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

Forex News Gun Trade Plan

Canada GDP - 8:30am NY time (Friday, October 31)

--–––––————————————————————–––––--​

	Traded pair	Expected figure	Deviation trigger
	USDCAD	0.0 (%)	±0.3 (%)

	Buy	USDCAD	if actual figure is or is below	-0.3 (%)
	Sell	USDCAD	if actual figure is or is above	0.3 (%)

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


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

Release name in FNG client: STCA Canada GDP All Industries

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




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

1. Start trade terminal

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

- Select USDCAD 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 GDP.​

- Double click on first row's 'Range To' cell. Type '-0.3' and hit Enter.​

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

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

- Double click on second row's 'Range From' cell. Type '0.3' and hit Enter.​

- Drag the mouse cursor over the terminal's Sell 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 31, 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 GDP, where the same deviation of at least 0.3 occurred. Click here to see such history: Canada GDP 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.

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

Diamonds Trading Signals Trade Plan

Canada GDP - 8:30am NY time (Friday, October 31)

--–––––————————————————————–––––--​

	Traded currency pair	:	USDCAD
	Initial spike duration limit	:	15 seconds
	Initial spike price action threshold	:	12 pips
	Triggering retracement percentage	:	30 %
	Retracement duration limit	:	40 seconds
	Maximum trade hold time after release	:	10 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 08:29:45am, so 15 seconds before the announcement, start paying very close attention to the price action of USDCAD on your chart.
   
   
3. If between 08:30:00am and 08:30:15am, so during the first 15 seconds after the report, you see USDCAD move up or down by 12 pips or more, then enter in the direction of the initial spike at the very first 30% 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 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 12 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 08:40:00am, so 10 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 April 30 2012, at 8:30am, Canada GDP number was released, so in the first 7 seconds, the price of USDCAD spiked up by 20.7 pips from 0.98297 to 0.98504. Then price started retracing, and within about 11 seconds retraced to 30% level of 0.98441. So you would Buy at 0.98441, set a stop/loss at 0.98341, and set a take/profit at 0.98541. 3 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.

--–––––——————————————————————————————————————–––––--​

 

[alvin050]

FNG doesnt seem to be working today (27 oct), all the dates/times/forecasts not updated

 

[Peter O]

Yup, something has stuck in, it seems to be fixed after restart.

 

[superherobyday]

Peter, how do you calculate the expected pips for various deviations of news? I'm trying to find a quicker way of analyzing stats than looking at each chart of every news release and counting pips. Is this info already compiled somewhere?

Cheers

 

[Peter O]

I don't know a database storing these details, so in this case all I can think of is analyzing charts manually. Especially because expected price move depends on a few input strategy parameters like typical time span of the a trade in the trade plan. But if you have those parameters I can imagine that the statistics can be automated with a proper market database.