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Ideal way to trade Spikes?

Discussion in 'General Forex Talk' started by The_One, Oct 23, 2007.

  1. The_One

    The_One Recruit

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    Hello,
    I've had SNW and Diamonds for 2 weeks and had very good last week with trading after-spike trades with MBT. However I haven't tried SNW yet as I am not sure what kind of order and settings I should use on MBT.

    I've seen the Felix video on setting up MBT but he doesn't talk about setting SNW ideally for Spike trading. I also read through the whole documentation for Order Types on MBT/EFX and not sure what type of order I should be placing for Spikes.


    If someone can please assist me with the Type of Order (Stop limit, Limit, TTO) and the values I should be putting in the fields so as to not get filled too far away on the spike.


    Any help is highly appreciated.

    Regards,
    The_One
     
    #1 The_One, Oct 23, 2007
    Last edited: Oct 23, 2007
  2. Boko Maru

    Boko Maru Sergeant

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    Best to use "soft limit" orders, which just means a limit buy at a price above current price, and a limit sell at a price below current price. Set prices above and below however many pips you're willing to be filled at from current price. The trade plan always gives a suggested entry, i.e. "limit 10 pip entry", etc. So, in that case, you'd set your buy limit order 10 pips above market price and your sell 10 pips below.

    Note however, that to do this correctly you have to keep changing the prices on the limit orders as the market prices change. It's not that hard once you get used to doing it, but prices can jump around a lot right before news, so you have to learn to babysit the two order windows and be quick.

    MB Trading is not that great for spike fills though, but it's worth trying it anyway. Hope that helps...
     
  3. The_One

    The_One Recruit

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    Hi Boko...thanks a lot for your reply. It does make sense.

    However I would still like to know what is the official recommendation from SNW team.

    Regards,
    The_One
     
  4. phil008

    phil008 Recruit

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    I would be interested as well but I'm not sure you can trade most of the spikes with MBT even with the SNW. good luck though, it's just gotten so tough these days to get a decent fill.
     
  5. wmased

    wmased Private

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    I talked to MBT about trading these spikes and they suggested using the stop-limit +TTO
    The reason for the stop (entry) plus the limit is that the stop sends the order and the limit makes it happen...It has worked well so far except for the one trade last week that moved about 70 pips on the news and my waiting order turned from brown to red and that's all that happened...I called MBT to see what happened and they said I probably had my stop too close to the limit...I had it set at 5 pips which is what I normally do, but in that kind of environment I needed a larger spread to get filled..Also your stop and limit settings depends a lot on the type of news that is comming out as well as the diff. types of news at the same time...On one single event you can be more aggresive but with mutiple news events you need to be more conservative....Cheers...wmased
     
  6. The_One

    The_One Recruit

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    Hi Wmased,
    Thanks for the reply. So how extacly you will set this up?

    Please see if this is how you would recommend:
    1. Change the order type to Stop-Limit + TTO Prior to the news release.

    2. Option 1: Manually Enter Stop and Limit prices, ideally 10 pips apart.

    3. Option 2: Set the SNW to click on Bid or Ask and the click on the up/down arrow on limit. Prior to news have preferences already set to Spin Increments Price by 10 pips. This will make price jump on Limit by 10 pip when the arrow is clicked. And lastly setting SNW to click Buy/Sell Button.

    Regards,
    The_One
     
  7. wmased

    wmased Private

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    set up

    I use MBT so I go in and set up my target and stop loss ahead of time so that when I click on a buy or sell my preset numbers are already in place so all I have to do is set my stop (entry) when I am ready to make the trade. Some of the other platforms won't let you preset these figures so if you have a pre-release price moving all around and you are trying to figure out your entry it's a nightmare because you don't have the time to set up all those figures with one min. left before the news.. FXCM is one of them..Cheers
     
  8. wmased

    wmased Private

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    I use option 1 most of the time but it just depends on the news event comming up....Option 2 is good but I personally like more control at that moment...Cheers..wmased
     

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