FX Cowboy, Yes, of course we can collaborate, but maybe it's better to start with Buk's 00 system? 500 pips in one week in one pair are not bad. In fact I don't think Soros could do it better...Maybe we should start a hedge fund together? LOL.
When trading 10 yr notes on a number I send off an order as soon as my brain has processed it while I'm still looking at Bloomberg. The exception is the Michigan number because we get the conference call, but the goal is still to send off the order immediately. When trading the currency futures (except on huge events like if the FED raises 50 instead of 25 at next meeting) I wait until the spread closes and something resembling normal trade starts before sending of an order. Because of this the price movement has usually already started; but that's all you can do. Even though I'm forced to wait a few seconds or more when I'm trading the Euro, I know which direction I'm trading in as soon as the number(s) come out. I don't have any firm rules on when to take profits-it depends on how far off the #'s were from expectations, how important the number(s) are, and how it trades. There is lots volatility right after a number in the euro futures so I will usually allow for 10 tics of heat against me and at least 10 tics of a pullback once I am well in the profits. However, if the initial move appears to be rejected it's time to exit, look for further confirmation of the rejection, and think about going the other way. All of the above concerning entries after a number assumes that the numbers dictate a price movement. If the numbers are in line then I hold off. If the numbers are contradictory and I don't know what the market will make of them, I wait to follow the price movement and I take my profits sooner because there is more risk of a quick reversal.
TRADERguy, Thank you. Yes, I know the big spreads in forex futures just before and after important numbers. But are their no so such big spreads in T-notes?
There are usually only big spreads in the T-notes before big numbers like the non-farms and FOMC decisions. But if the number is out of line you can still get a good fill and be in the profits right away. Keep in mind that I get the numbers as they come out, but even with a slight delay you should be OK trading out of range important numbers because of the 2 waves of price movement that I referred to earlier: first you get movement from the futures speculators and then the paper moves and carries it farther.
"As a boy I was shy and fearful, with a dread of speaking in public. I had an ungovernable temper. As I grew older I liked to gamble - a horse race, ball game, or prize fight still thills me and makes me feel young again. Whatever I saw others accomplish, I was driven to try to do myself. Only after much effort did I learn how to control my feelings, and do what I could do best, leaving what I could not do well to others".
If I can trade FX succesfully for a while, I'll trade from Europe too at least part of the year. Chinook