Forex Signal (Tue July 20, 2010 9:00am EST NY Time) CA BOC Overnight Rate Decision

[Boko Maru]

can someone plz explain what happened? at 9am this news realease came on, USD/CAD went up 30+ pips....why? why buy the USD when the release was good for CAD.
but at 2hours later it sunk to 120pips.....

Release came out exactly as expected. The volatility was due to the accompanying statement from the Bank of Canada. As traders try to decipher the statement and decide whether it's bullish or bearish, price gyrates wildly. Also, banks use events like this as an opportunity to run stops in both directions, hence the up and down price action...

 

[habrys]

I've got one question normaly when news release for example is 14.30. How much time do we get with SNW it's one, half second? or even less? I talked about pro version ofc. I've tried many brokers for use spike trading (setting pending orders by EA). I could not find broker who do not have a slippage but using SNW could solve that thanks to the time we get the numbers?

If someone could help me with this solution I could share with Timing Trader system.

It's hard to judge exactly, as news themselves can be published a few seconds later or earlier (like 14:29:57.230). I would say it's milliseconds after release + your latency, which depends on where you are connecting from to the SNW server (in my case about 70ms, but it can be as low as 1ms if you are in NYC or rent a server there). But the only way you can try to estimate this is looking at the price action - it starts almost exactly at the moment, when current number pops up in SNW. So I'd say they are damn fast. Don't think any news service out there is faster. Comparable yes (like Muse, RSS). But not faster. And no free service comes even close to that. They publish data seconds after release. And even half a second is way to late to catch the spike usually. You have to pay for autoclicker, no other way. Unless you straddle, which is suicide in my opinion.

Slippage is another matter. It has nothing to do with SNW. Just your broker. It's very difficult to find brokers, who give you good fills (without much slippage or large spreads) during news. It's simple: your profits made trading news spikes are their losses (I mean market makers). So they fight news trading with all possible means. Slippage, wide spreads, requotes, rejects, putting on manual (flagging) after few successful spike trades. Everything. I don't say spike trading isn't possible anymore. But it's not easy. And the bigger problem is finding good brokers. And even if you accomplish that, they don't last long, like few months. So you have to open news accounts. In other words you need a steady supply of new good brokers, or new accounts at least (in case you got flagged).

 

[RahmanSL]

...And not forgetting (i.e. on ECN Brokers) the "Too many Orders" perpetual message when you try to enter a trade unsuccessfully like forever.

 

[Cancer0s]

So As You Said there is no way of getting a perfect solution. Probably finding a good broker is a nightmare and nobody could tell me a secret