Hello,
This is my system for trading news. So far using it on AUDUSD,USDCAD and GBPUSD.
READ THIS BEFORE POSTING
* ANY POSITIVE CRITICISM IS WELCOME. DO NOT POST IN THIS THREAD IF YOU ARE ONLY GOING TO PROVIDE NEGATIVE FEEDBACK WITHOUT A POSSIBLE SOLUTION. I HATE PEOPLE THAT DOESN'T APPRECIATE THE HARD WORK OF OTHERS. I AM OPENING THIS THREAD BECAUSE I WANT TO HELP OTHER TRADERS. SO BEFORE POSTING TAKE A MOMENT TO THINK.
* DONīT CHANGE THE RULES OF THE SYSTEM AND COME UP WITH SOME "FANCY" NEW RULES.
* READ ALL THE THREAD BEFORE POSTING OR ASKING ANY QUESTION.
* BE POLITE WITH EACH OTHER.
NOT FOLLOWING THAT WILL GET YOU BANNED AUTOMATICALLY WITHOUT ANY NOTIFICATION.
RULES
First you need to to go to Economic Calendar and only check AUD,CAD, GBP and only the red flags.
We trade all the red news, EXCEPT THE SPEECHES LIKE RBA Gov Lowe Speaks or BOC Gov Poloz Speaks
*GBPUSD: Only trade the news that take places before NY open (most of them around 3:30 am or 4:30 am). Donīt take the news when US market is open.
First we need to avoid slippage and whispaws during the high impact news, so we donīt enter quickly. We look at the 5minute timeframe and wait for the first candle after the news to complete. We have 2 trades:
1) First trade in the direction of the 5 minute candle
Buy: If the 5minute candle was green, we buy.
Sell: If the 5 minute candle was red, we sell.
Example, 26.01.2017, GBPUSD:
2) Second trade: We trade the reversal.
- If the first 5minute candle is green, we place a Sell stop 2 pips below the candle low.
- If the first 5 minute candle is red, we place a a Buy stop 2 pips above the candle high.
Example AUDUSD(July 20, Empoyment change, unemployment rate):
The first 5 minute candle is green so you set a sell stop 2 pips below the candle low (you also took the first trade in the direction of candle but got stopped out):
IN OTHER WORDS, AFTER THE FIRST 5 MINUTE CANDLE YOU MUST DO TWO TO ACTIONS: YOU PLACE A TRADE AND ALSO A STOP ORDER.
STOP LOSS AND TAKE PROFIT IS THE SAME FOR BOTH KIND OF TRADES:
The most important aspect of a system is how you manage the trades and how you exit them. We need to treat each pair separately because they have different behavior, volatility and the events occur at different times of the day;
- AUDUSD: Very low volatility pair. Stop loss is 30 pips and Take profit at 30 pips. You wanna secure profits before London Opens. Once the trade is at +15 pips, move the trade to breakeven and start trailing the stop with 5 pips step. .
- USDCAD: Middle volatility pair. Stop loss is 30 pips. Move to breakeven once is at +30 pips. You can start trailing it at +15 pips with a 5 pip step.Donīt use a Target profit, you want to catch all the movement of the liquid market (London + NY). Close the trade at the end of the day (around 1 hour after NY close)
- GBPUSD: High volatility pair. Stop loss is 35 pips. Donīt use a Target profit, you want to catch all the movement of the liquid market. Close the trade at the end of the day (around 1 hour after NY close). The case of GBPUSD is very special because you have to face the US open and a possible reversal. Donīt move the Stop loss to break even to quickly. You need to give the trade some room. As a general rule, move the stop loss to breakeven when you are +50pips; secure 20pips when you are +80pips, secure 50 pips when you are +100 pips. Usually when US opens you will face a reversal, donīt make the mistake of taking small profit, just hold on the trade until the trend resumes.
Money management
You will need to use different lot sizes for each pair because of the different volatilities. So you need to adjust the trade size. For 1 lot of AUSUSD you trade 0.7of USDCAD and 0.6 of GBPUSD.
Example: For a US$ 1,000 account: AUSUSD: 0.2 lot size, USDCAD, 0.14 lot size, GBPUSD 0.12 lot size.
Results from this year: +1,669 pips (January to October)
I have put more than 50 hours on the backtest this week, manually looking every event of each pair. The summary is very reliable.
This is my system for trading news. So far using it on AUDUSD,USDCAD and GBPUSD.
READ THIS BEFORE POSTING
* ANY POSITIVE CRITICISM IS WELCOME. DO NOT POST IN THIS THREAD IF YOU ARE ONLY GOING TO PROVIDE NEGATIVE FEEDBACK WITHOUT A POSSIBLE SOLUTION. I HATE PEOPLE THAT DOESN'T APPRECIATE THE HARD WORK OF OTHERS. I AM OPENING THIS THREAD BECAUSE I WANT TO HELP OTHER TRADERS. SO BEFORE POSTING TAKE A MOMENT TO THINK.
* DONīT CHANGE THE RULES OF THE SYSTEM AND COME UP WITH SOME "FANCY" NEW RULES.
* READ ALL THE THREAD BEFORE POSTING OR ASKING ANY QUESTION.
* BE POLITE WITH EACH OTHER.
NOT FOLLOWING THAT WILL GET YOU BANNED AUTOMATICALLY WITHOUT ANY NOTIFICATION.
RULES
First you need to to go to Economic Calendar and only check AUD,CAD, GBP and only the red flags.
We trade all the red news, EXCEPT THE SPEECHES LIKE RBA Gov Lowe Speaks or BOC Gov Poloz Speaks
*GBPUSD: Only trade the news that take places before NY open (most of them around 3:30 am or 4:30 am). Donīt take the news when US market is open.
First we need to avoid slippage and whispaws during the high impact news, so we donīt enter quickly. We look at the 5minute timeframe and wait for the first candle after the news to complete. We have 2 trades:
1) First trade in the direction of the 5 minute candle
Buy: If the 5minute candle was green, we buy.
Sell: If the 5 minute candle was red, we sell.
Example, 26.01.2017, GBPUSD:
2) Second trade: We trade the reversal.
- If the first 5minute candle is green, we place a Sell stop 2 pips below the candle low.
- If the first 5 minute candle is red, we place a a Buy stop 2 pips above the candle high.
Example AUDUSD(July 20, Empoyment change, unemployment rate):
The first 5 minute candle is green so you set a sell stop 2 pips below the candle low (you also took the first trade in the direction of candle but got stopped out):
IN OTHER WORDS, AFTER THE FIRST 5 MINUTE CANDLE YOU MUST DO TWO TO ACTIONS: YOU PLACE A TRADE AND ALSO A STOP ORDER.
STOP LOSS AND TAKE PROFIT IS THE SAME FOR BOTH KIND OF TRADES:
The most important aspect of a system is how you manage the trades and how you exit them. We need to treat each pair separately because they have different behavior, volatility and the events occur at different times of the day;
- AUDUSD: Very low volatility pair. Stop loss is 30 pips and Take profit at 30 pips. You wanna secure profits before London Opens. Once the trade is at +15 pips, move the trade to breakeven and start trailing the stop with 5 pips step. .
- USDCAD: Middle volatility pair. Stop loss is 30 pips. Move to breakeven once is at +30 pips. You can start trailing it at +15 pips with a 5 pip step.Donīt use a Target profit, you want to catch all the movement of the liquid market (London + NY). Close the trade at the end of the day (around 1 hour after NY close)
- GBPUSD: High volatility pair. Stop loss is 35 pips. Donīt use a Target profit, you want to catch all the movement of the liquid market. Close the trade at the end of the day (around 1 hour after NY close). The case of GBPUSD is very special because you have to face the US open and a possible reversal. Donīt move the Stop loss to break even to quickly. You need to give the trade some room. As a general rule, move the stop loss to breakeven when you are +50pips; secure 20pips when you are +80pips, secure 50 pips when you are +100 pips. Usually when US opens you will face a reversal, donīt make the mistake of taking small profit, just hold on the trade until the trend resumes.
Money management
You will need to use different lot sizes for each pair because of the different volatilities. So you need to adjust the trade size. For 1 lot of AUSUSD you trade 0.7of USDCAD and 0.6 of GBPUSD.
Example: For a US$ 1,000 account: AUSUSD: 0.2 lot size, USDCAD, 0.14 lot size, GBPUSD 0.12 lot size.
Results from this year: +1,669 pips (January to October)
I have put more than 50 hours on the backtest this week, manually looking every event of each pair. The summary is very reliable.
Attached File(s)
Summary 2017.xlsx
9 KB
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939 downloads