My trade station don't have DOM. Good idea to open another account, but I suppose DOM is mostly for scalpers? I just can't understand their should not be liquidity to trade forex futures after the big news, but of course you know it's much better than I. OK, so you know exactly what to do - but what if the market moves opposite to what it's supposed to do? Sometimes it happens. And - if it moves the right way - when do you take your profit?
Yes DOM is mostly for scalpers but it's nice to have (see next paragraph). Right before a major economic release (in the electronic traded futures for EUR/USD) the market makers pull their bids and offers. The spread can open to 10 or 15 tics with 1 and 2 lots showing in the five bids and offers shown (CME shows only the first five price levels of the bid and offers). This can set off stops and the price can fluctuate wildly. If you sent off a market order for size who knows where you will get filled. Also at the release of the number the futures price can almost instantly move a penny and outrun the cash price by 90 tics, then the arb computers will slam the price back to the cash price. All this can take less than 2/10ths of a second. If you trade the currency futures on the number release (from Bloomberg pro or Reuters, whichever comes out first) you can find yourself offsides by 90 tics in a heartbeat. Granted that you will probably be OK in another minute but who wants to take the chance? Better to trade the 10 year on a major number; the book is thick enough that you can get a good fill on the number and one handle (one big number like 110 to 109) is worth $1,000 per lot, and you can trade size. I only put on a trade immediately if the number(s) come in where they will cause a substantial movement. If the trade ever went in my face I would get out immediately at market. Either I f%cked up or there is something I don't know and the time to ponder this is after I am flat. If it goes my way then I judge how far out of whack the number was and judge how far the market will go. In reality I usually wait until the move has ended and retraced about 10%. Then I watch and see if the market is going to reject the move or whether a bear/bull flag forms and the movement continues.
The G-7 statement looks like a non-event for the currencies. http://quote.bloomberg.com/apps/news?pid=10000006&sid=aGqZQDvH.lKQ&refer=home
Thank you. I learn a lot reading your posts. But I suppose the bond market not always react to the numbers the same way as the forex market does?
I am currently working on a system for the EUR/USD and currently have the system trading at 70% winning trades. I am still working on the system, trying to gather more data and weed out chances of large dips- I am trading the system on a demo and may actually in the end use the system as a whistle on what side of the trade i should be on (within my time parameter) and trade accordingly. anyone else have a system, and if so, what advice would you give me. NYCDT
Now we are above that 50 mark and i believe that it is going to be steady up from here (for next few days). I am long at 54 and sl of 34 NYCDT