Trade Plan - FNG - Thu, Feb 21 2013 - USA Core CPI 8:30am

Peter O

Special Consultant to the FPA
Messages
3,908
Hello Fellow Traders,


Here are Forex News Gun trade parameters for this release:

USA Core CPI > 8:30am NY time

Traded pairExpected figureDeviation trigger
USDJPY0.2 (%)±0.3 (%)

Expected move during first minutes after the release: pips or more

Actions:
BuyUSDJPYif actual figure is or is above0.5 (%)
SellUSDJPYif actual figure is or is below-0.1 (%)

Configuration steps for Forex News Gun client:

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 CPI.​
- 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 '0.5' 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 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 CPI, where the same deviation of at least 0.3 occurred. Click here to see such history: USA Core CPI history of charts.

Once there, set filter to Difference Actual-Forecast >= 0.3 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.


>> Go to see other trade plans for Thursday, February 21st, 2013


Sincerely,
Peter
 
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Dietmar

Private, 1st Class
Messages
70
Hy Peter,
thank you for this :)

sorry, but I have again this (stupid?) question,
which CPI shall we use in FNG?

(Screenshot)
CPI_which_one.jpg

I think, the top one "CPI Ex Food & Energy M/M" is the one, we shall take, because of the forecast numbers of 0.2 is the same that you posted here. But I´m not 100% sure because there is no "Core CPI" listed in FNG.

Best wishes to you and yours,
Dietmar
 

Peter O

Special Consultant to the FPA
Messages
3,908
Hi Dietmar, yes, use the first one (CPI Ex Food & Engergy M/M). However, it is not always true that my expected fiure is equal to that in the grid. I haven't forgotten I told about publishing release FNG names in trade plans - database entries are under construction so I will include them as soon as I can.
 
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