NexusFi: Find Your Edge


Home Menu

 





In the trade before a scheduled news event


Discussion in Traders Hideout

Updated
      Top Posters
    1. looks_one xplorer with 6 posts (0 thanks)
    2. looks_two MacroNinja with 5 posts (2 thanks)
    3. looks_3 mainstream with 2 posts (0 thanks)
    4. looks_4 TheWizard with 1 posts (3 thanks)
    1. trending_up 8,174 views
    2. thumb_up 7 thanks given
    3. group 4 followers
    1. forum 19 posts
    2. attach_file 1 attachments




 
Search this Thread

In the trade before a scheduled news event

  #1 (permalink)
 cw30000 
new york
 
Experience: Beginner
Platform: SC, NT
Trading: CL, GC
Posts: 206 since Sep 2009
Thanks Given: 99
Thanks Received: 113

I want to get some opinions on what other traders do if they are in the trade before a scheduled news event.

Like today, shortly after open, I've determined market will go down, so I have short and I have exist 30 seconds before the news event at 9:55 AM ET. My profit at that moment was 6 ticks. What do you do if you were me?

Thanks.

Visit my NexusFi Trade Journal Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
Deepmoney LLM
Elite Quantitative GenAI/LLM
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Better Renko Gaps
The Elite Circle
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
59 thanks
Funded Trader platforms
36 thanks
NexusFi site changelog and issues/problem reporting
25 thanks
GFIs1 1 DAX trade per day journal
19 thanks
The Program
18 thanks
  #3 (permalink)
 
trendisyourfriend's Avatar
 trendisyourfriend 
Quebec Canada
Market Wizard
 
Experience: Intermediate
Platform: NinjaTrader
Broker: AMP/CQG
Trading: ES, NQ, YM
Frequency: Daily
Duration: Minutes
Posts: 4,527 since Oct 2009
Thanks Given: 4,171
Thanks Received: 6,018


Trading is a risky businness. Knowing this, if you evaluate the risk is worth considering the potential profit then go ahead take it. I don't think there is much to be said about it. Personnaly i prefer to stay on the fence as there are so many opportunities you can take without the added adrenaline.

Reply With Quote
  #4 (permalink)
 
TheWizard's Avatar
 TheWizard 
Houston, TX
Market Wizard
 
Experience: Intermediate
Platform: NinjaTrader
Broker: Optimus Futures, AMP, CQG
Trading: 6E
Posts: 1,731 since Jun 2009
Thanks Given: 517
Thanks Received: 4,224


cw30000 View Post
I want to get some opinions on what other traders do if they are in the trade before a scheduled news event.

Like today, shortly after open, I've determined market will go down, so I have short and I have exist 30 seconds before the news event at 9:55 AM ET. My profit at that moment was 6 ticks. What do you do if you were me?

Thanks.

For me, the radio is OFF. The TV is OFF. The internet news feeds are OFF. I care absolutely nothing about the news as far as trading goes. I trade what I see. By the time the news gets to me it's way, way, way too old to be of any use to me as a trader. Those who could take advantage of such information already have. I watch the same patterns repeat themselves week after week. After reviewing things at the end of the day, sometimes I see where a news event slowed down or sped up the market, but I don't want my decision making process to be influenced by news events. I tried that in the past and had very poor trading results. My current approach, so far, seems to be working well for me. No news is good news!

After all, it's what you learn AFTER you know it all, that counts!
Reply With Quote
Thanked by:
  #5 (permalink)
 
cory's Avatar
 cory 
virginia
 
Experience: Intermediate
Platform: ninja
Trading: NQ
Posts: 6,098 since Jun 2009
Thanks Given: 877
Thanks Received: 8,090


cw30000 View Post
I want to get some opinions on what other traders do if they are in the trade before a scheduled news event.

Like today, shortly after open, I've determined market will go down, so I have short and I have exist 30 seconds before the news event at 9:55 AM ET. My profit at that moment was 6 ticks. What do you do if you were me?

Thanks.

same as you, run like he!! sometimes news moves the market other time it doesnt but since you dont know which is which, stay out.

Reply With Quote
  #6 (permalink)
 mainstream 
Chicago, IL
 
Experience: Master
Platform: Kinetick Ninja Trader <7>
Broker: Ninja & IB
Trading: YM & Equities & Options & Mutual Funds
Posts: 174 since Jun 2010
Thanks Given: 57
Thanks Received: 88

The news can fuel your move or snap your stop, or fuel your move then turn around and snap the stop. Either way, the bots are super active on the 7:30 number IMO.

You could even write your own bot for news.

15 Sec Bars

Trade >7.29
No trade >7.31

If 1 period EMA crosses above Dynamic Resistance go long
If 1 period EMA crosses below Dynamic Support go short

If 1 period EMA crosses below Parabolic exit long
If 1 period EMA crosses above Parabolic exit short

If time in position is greater than 8 bars exit long/short

Profit Target 12 ticks
Stop loss 8 ticks

Reply With Quote
  #7 (permalink)
 MetalTrade 
 
Posts: 1,055 since May 2010

Raise your profit by NOT trading before/during high impact news.

It can go down but move up first and stop you out in a split second.

jteconnews is a good NT indicator to add on your charts.

Reply With Quote
  #8 (permalink)
 mainstream 
Chicago, IL
 
Experience: Master
Platform: Kinetick Ninja Trader <7>
Broker: Ninja & IB
Trading: YM & Equities & Options & Mutual Funds
Posts: 174 since Jun 2010
Thanks Given: 57
Thanks Received: 88


TheWizard View Post
I watch the same patterns repeat themselves week after week. After reviewing things at the end of the day, sometimes I see where a news event slowed down or sped up the market.

bingo

Reply With Quote
  #9 (permalink)
 
xplorer's Avatar
 xplorer 
London UK
Site Moderator
 
Experience: Beginner
Platform: CQG
Broker: S5
Trading: Futures
Posts: 5,944 since Sep 2015
Thanks Given: 15,447
Thanks Received: 15,291


cw30000 View Post
I want to get some opinions on what other traders do if they are in the trade before a scheduled news event.

Like today, shortly after open, I've determined market will go down, so I have short and I have exist 30 seconds before the news event at 9:55 AM ET. My profit at that moment was 6 ticks. What do you do if you were me?

Thanks.

For me it depends on a number of factors, including instrument being traded, what scheduled news event it is, and how many ticks I am already in profit. If it's a Tier 1 data release and it's likely to influence the instrument being traded I would probably exit before the release, especially if unrealised P/L is < 10 ticks.

But if it's say a Tier 2 data release and unrealised P/L is say in the range of 20-30 ticks or more, I could decide to stay in the trade and see how that goes.

For instance, I would never be in a trade when NFP is about to be released

Reply With Quote
  #10 (permalink)
 MacroNinja 
Buenos Aires Argentina
 
Experience: Advanced
Platform: NT, MT4, Sierra
Trading: S&P, Bonds, Crude, FX
Posts: 250 since Sep 2014
Thanks Given: 37
Thanks Received: 256


It would seem as if your current trading strategy is potentially not building in any bias or calculation as to how to data from the news release will play out. If that's the case, then probably best to just close the position.

However let's say for example that you knew for sure or a very high likelyhood that PMI data was going to come out at a 10% miss against consensus forecast. While everyone else might be surprised, you are not. If that's the case, why would you not hold the proper position ahead of time?

Or let's say you knew that EPS was a huge beat at 1.50 versus a consensus forecast of .75. Again, if you've done the homework and you feel the analysis is correct, get paid for the work.

If however, you're simply trading technicals and you have no edge when it comes to the fundamentals, then step aside and let the fundamental players make the valuation call, and after the dust settles and all the other technical traders have piled back into the market, then you get back to work.

Reply With Quote
Thanked by:




Last Updated on February 16, 2016


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts