I am looking for a strategy time specific that will place a buy and sell stop (OCO) seconds before the FOMC annoucement (or any major economic news that might move the markets). It would be nice if the parameters would allow you to change the time and the number of ticks above a given price of the high/low previous n bars. Then trail the strategy with a stop. Thanks in advance .
I trade the FOMC a little different than economic news. A strategy might work for the news. When they are released you have the actual numbers and the revisions the same time. But with FOMC you have the announcement, but then you have to wait for the comments like what's the bias and any other "smart" words. This might create some up and downs.
try following :
(but please review if it fits your style and be extremely carefully, because TRADING NEWS IS VERY DANGEROUS why ? just because when you entered trade it could happen that you will not find counterparty until market normalize again, i.e. your stop order could not work as nobody will be from another part, watch DOM when during news releases and you will know exactly what I mean)
long... but that's not "empty words" + be sure your broker/software/datafeed/execution is light fast to play that "games" it's easy and fast money, but really dangerous.
Ok, when I've traded news (I've stopped not because I've failed, the reason was that at those time I've really understood that my broker/frontend/datafeed at those time was more dnagerous than news)
+ Fast STO 2/4
+ Fast STO 4/2 or 3/2 (slightly differs of currencies and commodities)
Now what you need to watch...
news... it's not the name of the game we are expecting good PMI and that's why we just go long
usually before news market will try to hide it's true direction of its first news bullet, so
I call it rabbit rubber, so market will stretch RSI and STO, it means RSI should go above 99 !!! or below 2 or better 1 or even lower!!! , the same for STO is shall show its extreme meanings (watch how they works first and then you will understand what it means) also very important for STO during that at least 2 figures should be equal, i.e. D line of one STO and K line of another or even 3 egual figures)
so, don't hurry watch what market do just about 5 minutes before news usually it will be "fox play" and you will see how rabbit rubber works, then just 10-15 seconds before opening of next bar enter and pray
for both orders stop and profit use ONLY MARKET
also, before start look on the market you want to trade news there are some slight differences, for example sometimes market will "price" news just 1-2 bars before news and exactly at news you will see "man I need Viagra" just because all news gamblers already did money
well, if you have any further questions or anything else - ask + do not hesitate to keep me updated about your failure/success, BUT
TRADING on NEWS is VERY DANGEROUS
but, I know guys who trading news or opening gaps all their life only, just because it fits their personality and they are Pro in that "game"
Be careful and good luck !
P.s. timeframe used 1 minute and 5 minute, no ticks !!! if will not understand what to watch pm me.
If you read carefully my post I'm mentioned by BIG LETTERS the DANGER of TRADING ON NEWS, but I also wrote that know traders who are successfully trading news and open gaps only, just because it fits their personality.
And that's why I've told about strategy I've used to trade news - it's matter of each person to decide what style/set ups to trade, but if anybody asking for info he/she expect to get info, whereas you are providing only cautions. That is great, but that could mean only that you don't have strategy you are talking about, sorry, don't think I want to offend you, but I personally highly don't like such style of advices.
If I want to jump from rock it's my business, I've ask for questions I've interested, but not cautions : don't do that.
Hope you understand.
I was on one forum which was full of such style "empty" stuff I will never revert to there and I really glad I found Mike's forum where spirit of open sharing of info and support is welcome I treat that very important and make my contributions to keep that spirit strong.
Hope you understand.
P.s. every secret always become known, but sometimes secrets don't worth to be disclosed
I've stated that I had now intention to offend you if it happened I apologize.
I'm not programmer, that's why it's difficult to expect that I will post any indicator, however I open to share what I know and do it without remarks.
However as usual a have a few new idea and if they will be coded, they will be shared here automatically.
Regarding your indicators...all simple if you don't want to share them, why to mention them ?
again, repeat, please don't think I want to offend you.
Regarding volume, I'm interested in further research of that and ready to team up with anybody how interested in that too to make further research/development/share ideas/make discussions.
However right now I'm thinking a lot about one problem, I'm not sure I have it solved and if so whether it will be possible to solve that in some very near future.
The problem is that the volume which seen by retail is :
1) not all volume traded
2) even that volume is not "described" so it goes just as whole bunch.
3) etc, etc, etc.
that is well known issues, what I'm trying to do now to solve at least part of them and anyone who interested in that too are welcome.
Just take a look at the way that the market is trending or "leaning" on a very short time frame right before the news comes out. Most of the time it will take off in that direction, so get in right before the news with a reasonable stop and take your chances. The risk/reward is worth it if you know how to read it and where to place your stop. Chances are that the news is going to be known by certain people before it actually comes out, so the last-minute trades that occur before it happens can be attributed to those people getting in to take advantage of it. It works OK for me as a strategy most of the time...
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