lets get to business...
Advantages of trading the news with perfect time
- You don't need to sit at your PC all the time
- you will make money in instant
- loss are regain back instantly
- you have time to trade according to the news schedule
The System What You need to know?
1. It can work with broker that accept trading the news and lock position
2. It can work on 1Hour and 4 Hours Candle only)
3. No indicator at all
4.Trade high fundamental news with High impact only (even NON-Farm payroll)
5. Trade news with changes in the forecast
6. You can trade the cross of the currency that the news is about to release example USD you can
trade EURUSD,GBPUSD,NZDUSD,AUDUSD,USDJPY (any cross against USD)
Trading the news
Check http://www.dailyfx.com/calendar for the fundamental news that you will trade in a week.
Lets get down to business!!!!!!!!!
After you know the news you are going to trade all you need to check is
1. Changes
2. Time
3. Impact
All this three are all important. Before the news will be release you need to be at your terminal that is if
the news will be release by 3:00 PM you need to be at your terminal at 2:55 PM that is 5 minutes
before the news will be release.
What you need to do
• Now Turn your time frame to 4 Hours (or Any Time frame you like)
• Check the High & Low of the current candle and note it down,
• Check if the price is 5 or 6 pips different from the High & Low
• Place Sellstop to Low and Buystop to High
• Your Sellstop Stoploss should be at High and Buystop stop loss should be at Low
• Take profit should be 30-50 pips depends on the spike of the news
• Use Money management 0.1 lot recommended for Low equity
• For Equity above $200 calculate the different between High and Low then risk the amount you
want ( if high and low difference is 26 pips then for 0.10 lot you are risking 26*2=52 that is $52
that's too much then put 0.5 to risk $26 (Don't worry if you use 0.10 cause you will not lose)
• Increase Lot on Changes ( You will understand this in the example given)
See Examples below
USD Gross Domestic Product Price Index Time 13:30 Previous:2.6% Forecast: 1.90% changes:0.7%
• High=1.2149, Low=1.2135, Price=1.2139|
• That is 5 pips difference from low then we can enter our sellstop and buystop respectively
• 14 pips Difference from High and Low that is 28 pips risk in both side use 0.10 pips I risk $28
Before The News