Make Easy Pips With Economic Calendar

[scorpion]

Drivefast, if there's no direction, we don't trade. No direction means the news is unimportant. So it's unnecessary risk to trade.

jimboy, i don't have any records for other indicators, not until i've done extensive research on them. I'm trading only USA Employment, as my research focus much on it.

[nickbilak]

Originally Posted by scorpion

nickbilak, it doesn't work that way. Better or worse doesn't matter, for most indicators. What matter is if the number comes out as expected or unexpected. Because big dogs have anticipated the news through analysis. If actual number is opposite, they'll reverse their positions at once.

i agree with this, but how do you make your predictions? what makes you think that numbers come opposite of expectations?

[scorpion]

I don't care if it comes out as expected or not. It's human psychology that matters. We always overreact to negative or unexpected news, while just react normally to expected news. Remember that key players have anticipated the news already, meaning they entered orders long before the news. If data comes out as expected, they won't have to do anything. It's expected so they let the profit run, so not much movement. If it comes out the opposite, they will prompt to close all the orders--to cut the loss short--and possibly reverse them. That would make price shoot twice farther, faster, and this is what this system is designed to capture.

At the core of probability, this system will win more than it will lose, as we're taking advantage of the overreaction. Hence, at the end of the day we'll see profit.

Imagine you hear these:
1. You are winning $1,000,000! You can fetch it now or next week.
2. Your $1,000,000 mansion is on fire! You can call 911 now or next week.

What will you do first and foremost?

[FrankTheTank]

Thank you for the interesting news system. The main problem that I see (as you mentioned in the beginning) is that stop losses are usually never kept by your broker during news times. Most brokers turn a stop loss order into a market order at news times so your stop loss will be at the top or bottom of the news spike. For NFP, you could end up at -100 pips in under 2 seconds!

I am curious to see how often this happens. As long as the win percentage is high enough, I guess this should not be a problem.

[scorpion]

TP can also go more than 100 pips in 2 seconds, unless your broker is tricky. So I assume SL/TP slippage offsets the other.

I'm going to unleash another news trading system which makes money regardless of direction. All we need is volatility only half of expected volatility to make money. (intraday options, anyone?)

[fxwannabe]

I know that the news can cause a quick re-action or over reaction, usually a temporary move. Is there a way to have a clue which direction to trade the pairs in advance of the pairs. I can't look at the jobless claims and know if it means I should be bullish or bearish.

[FrankTheTank]

Hi, it is not possible to get the news before hand (they keep it in lockup). However, there are some spike traders that use bot programs to get in right as the news is released and can usually make a decent profit. I personally use RSS program with good results (info here)
Forex Live-on-the-News Trading Room

[Gordon Gekko]

Frank,

You should have put a note at the end of your post that read the following:

NOTE: Although I use RSS and make a decent profit (which is run by someone whom Bloomberg banned from their services for contract violation and distributing proprietary information), RSS has proven to be the slowest of the three spike trading organizations when the software actually works, and also charges the most in monthly fees.

[user4001]

You may get a few more Idea's from this site The Forex Muse Review to trade the news.There is at the end a video which you can watch ,go to this part.
"When you're ready to watch the video, click here."

[nsi]

Should we trade all High/Medium forecasts or ONLY US NFP as per this methodology and FXFisherman's predicted moves?

Is it possible to get some idea about how FxFisherman is coming up with the forecasts/predictions?

Originally Posted by scorpion

Using our forex economic calendar and its forecast, we will enter a market order 30 mins before news release and close it 2 or 3 hours later. Set SL and TP to the "Price Range" shown. We don't trade just every news listed in the calendar. Stick with only the ones that set off high and medium volatility on price, i.e. employment situation, interest rate announcement, ISM PMI, Chigago PMI, etc. Look for the ones with red icon. You should improvise the market order with like stop/limit order to gain some more pips.

Here's an example, in the attached calendar image, the calendar forecasted that on January 05 2007 13:30 GMT, the EURUSD would be moving down 80 pips. So at 13:00 GMT, you would short selling EURUSD with SL = 80 pips and TP = 80 pips. See the attached chart, we made at least 80 pips with this one event alone!

Here's past results trading USA Employment Situtation:

Feb 2007 13:00: Short EURUSD, Profit: +63 pips
Jan 2007 13:00: Short EURUSD at 1.3089, Profit: +80 pips
Dec 2006 13:00: Long EURUSD at 1.3275, Profit: +80 pips
2006/11/03 13:00: Short EURUSD at 1.2760, Profit: +80 pips.
2006/10/06 13:00: Short EURUSD at 1.2662, Profit: +80 pips.
2006/09/01 13:00: Short EURUSD at 1.2815, Profit: +10 pips.
2006/08/04 13:00: Long EURUSD at 1.2793, Profit: +80 pips.
2006/07/07 13:00: Long EURUSD at 1.2774, Profit: +80 pips.
2006/06/02 13:00: Long EURUSD at 1.2814, Profit: +80 pips.
2006/05/05 13:00: Long EURUSD at 1.2691, Profit: +52 pips.
2006/04/07 13:00: Short EURUSD at 1.2176, Profit: +80 pips.
And the profit goes on...