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Trading the News

Trading the News

by Dr.Hamdi Boukamcha
Hiya,
That is my system for buying and selling information. Thus far utilizing it on AUDUSD,USDCAD and GBPUSD.

READ THIS BEFORE POSTING
* ANY POSITIVE CRITICISM IS WELCOME. DO NOT POST IN THIS THREAD IF YOU ARE ONLY GOING TO PROVIDE NEGATIVE FEEDBACK WITHOUT A POSSIBLE SOLUTION. I HATE PEOPLE THAT DOESN’T APPRECIATE THE HARD WORK OF OTHERS. I AM OPENING THIS THREAD BECAUSE I WANT TO HELP OTHER TRADERS. SO BEFORE POSTING TAKE A MOMENT TO THINK.
* DON´T CHANGE THE RULES OF THE SYSTEM AND COME UP WITH SOME “FANCY” NEW RULES.
* READ ALL THE THREAD BEFORE POSTING OR ASKING ANY QUESTION.
* BE POLITE WITH EACH OTHER.

NOT FOLLOWING THAT WILL GET YOU BANNED AUTOMATICALLY WITHOUT ANY NOTIFICATION.

RULES

First you want to to go to Financial Calendar and solely test AUD,CAD, GBP and solely the pink flags.
We commerce all the pink information, EXCEPT THE SPEECHES LIKE RBA Gov Lowe Speaks or BOC Gov Poloz Speaks

*GBPUSD: Solely commerce the information that take locations earlier than NY open (most of them round 3:30 am or 4:30 am). Don´t take the information when US market is open.

First we have to keep away from slippage and whispaws throughout the excessive affect information, so we don´t enter rapidly. We take a look at the 5minute timeframe and look ahead to the first candle after the information to finish. Now we have 2 trades:

1) First commerce in the path of the 5 minute candle

Purchase: If the 5minute candle was inexperienced, we purchase.
Promote: If the 5 minute candle was pink, we promote.

Instance, 26.01.2017, GBPUSD:

Hooked up Picture (click on to enlarge)
Trading the News

2) Second commerce: We commerce the reversal.

– If the first 5minute candle is inexperienced, we place a Promote cease 2 pips under the candle low.
– If the first 5 minute candle is pink, we place a a Purchase cease 2 pips above the candle excessive.

Instance AUDUSD(July 20, Empoyment change, unemployment price):

The primary 5 minute candle is inexperienced so that you set a promote cease 2 pips under the candle low (you additionally took the first commerce in the path of candle however obtained stopped out):

Hooked up Picture (click on to enlarge)
Trading the News

IN OTHER WORDS, AFTER THE FIRST 5 MINUTE CANDLE YOU MUST DO TWO TO ACTIONS: YOU PLACE A TRADE AND ALSO A STOP ORDER.

STOP LOSS AND TAKE PROFIT IS THE SAME FOR BOTH KIND OF TRADES:

An important side of a system is the way you handle the trades and the way you exit them. We have to deal with every pair individually as a result of they’ve totally different conduct, volatility and the occasions happen at totally different occasions of the day;

– AUDUSD: Very low volatility pair. Cease loss is 30 pips and Take revenue at 30 pips. You wanna safe income earlier than London Opens. As soon as the commerce is at +15 pips, transfer the commerce to breakeven and begin trailing the cease with 5 pips step. .

– USDCAD: Center volatility pair. Cease loss is 30 pips. Transfer to breakeven as soon as is at +30 pips. You can begin trailing it at +15 pips with a 5 pip step.Don´t use a Goal revenue, you need to catch all the motion of the liquid market (London + NY). Shut the commerce at the finish of the day (round 1 hour after NY shut)

– GBPUSD: Excessive volatility pair. Cease loss is 35 pips. Don´t use a Goal revenue, you need to catch all the motion of the liquid market. Shut the commerce at the finish of the day (round 1 hour after NY shut). The case of GBPUSD may be very particular as a result of it’s a must to face the US open and a doable reversal. Don´t transfer the Cease loss to interrupt even to rapidly. You’ll want to give the commerce some room. As a basic rule, transfer the cease loss to breakeven when you find yourself +50pips; safe 20pips when you find yourself +80pips, safe 50 pips when you find yourself +100 pips. Often when US opens you’ll face a reversal, don´t make the mistake of taking small revenue, simply maintain on the commerce till the development resumes.

Cash administration 
You will want to make use of totally different lot sizes for every pair due to the totally different volatilities. So you want to modify the commerce dimension. For 1 lot of AUSUSD you commerce 0.7of USDCAD and 0.6 of GBPUSD.
Instance: For a US$ 1,000 account: AUSUSD: 0.2 lot dimension, USDCAD, 0.14 lot dimension, GBPUSD 0.12 lot dimension.

Outcomes from this yr: +1,669 pips (January to October)
I’ve put greater than 50 hours on the backtest this week, manually wanting each occasion of every pair. The abstract may be very dependable.

Hooked up File
Trading the News   Abstract 2017.xlsx   9 KB | 250 downloads

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