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Straddling the News
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Old 04-07-2007, 02:36 PM
SpecialFX SpecialFX is offline
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Default Straddling the News

Sorry, but i didn't do a screen grab last time i straddled (it was March BoE Interest Rate, and it was "textbook")

I set a buy order slightly above the current candle High,
and a sell order slightly below the candle Low


Then the market volatility spread increased, and both my orders got filled! This acted like a perfect hedge, covering the spread, so the result was neutral.

The market made up its mind to go down, so i cancelled the Buy position, and let the profit run to the TP below!

I have to say, this was very satisfying, even in Demo.

However, this month I went all-out (Demo still) on the EURUSD news, and got stung.

It's a shame there isn't more high-impact news per month, as it would be useful to practice the "straddle method" more often.

An EA would be most useful for this method, as it involves some quick but "robotic" thinking to be done just before the news comes out.
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