I am particularly talking about buy and sell stops above and below the market just a few seconds before news, I assume limits wont ever fill with these 50+ pip blink of an eye jumps. Now to my question, what on average is your slippage with the bracket stop orders. Just a few pips, or do they fill you at the top of the spike? I know many forex shops say they guarantee stops in normal market conditions, well to me news is a normal event, that is probably what they are saying I unmoral? The reason I ask about this with forex is because I know itâs a trillion dollar market versus the futures being only a fraction of that. Thanks for responses from those with actual experience, I would prefer not to have educated guesses, all replies are welcome though.
Retail shops will only give you a fill when you don't want it. Don't fall for that "trillion dollar" liquidity bullshit -- retail fx doesn't have access to it, and by comparison there are tons of markets out there accessible by the retail trader that are far more liquid than fx. If you want to trade the news, your best bet is futures markets picking off sitting limit orders, it's pretty much your only shot for now at least.
What does one do to get the high end liquidity, are interbank accounts the ones? Even if you had one do you think it would be possible strategy? And when you say futures markets any particular one ES? I did not think that limits would fill.
I can't imagine how you could possibly be consistently profitable with a strategy centered around this type of method???
I think it all depends on how your going to get filled. Demo index futures I am doing this method and only receiving 2 ticks slippage in YM. I know that this is very unrealistic, YM is very thinly traded in premarket, and thinly traded in real market hours. I have also done this on ES, however it is so incredibly easy. That is why im trying to find out before I go live. I already have a winning system other than this. I just want to have more than one system, diversifying myself.
What happens in Forex Demo world trading and what happens in real world trading are quite often very different. It'll cost you some money to find that out for yourself.
I was referring to globex traded currency futures -- plenty of liquidity for any individual trader. Your stops will still hit slippage big time around news events though, I wouldn't put too much faith in that strategy.
if u trade less than 5lots [sometimes u might be able to do more] and there's liquidty available, usin' lmt orders u wont get slippage at all...u might miss a fill but that's rare...talkin' about ym on news...same can be said for currencies futs as far as my experience goes with less than 5lots.
Your mistake is to try this a "...few seconds before news..." I mean come on. The first day of the month mark you calendar for the major reports. For a hypothetical example, you know in the third week of the month on the fourth day of the week a major US report is due and this happens every month. Up until that time, you have been analysing the market and analysing market reaction to the same report in the past. You should know, what the normal price behavior and price range of say the EUR/USD is for at least three or four days before the report and you need to factor in past price behavior at past report times (for both positive and negative report scenarios) Set your straddle trade accordingly. If if doens't go in your favor immediately, get out. No harm, No foul. If you try to do this seconds before the report, good freakin luck. Number one, you didn't do your homework, number two, you will most certainly not get filled where you want to and get killed. I always have my orders in at least 12 hours prior to release. Sometimes I am right, Sometimes I am wrong but I get my fill and if I'm wrong my stop loss gets me out. I live to trade another day. There is no perfect way to trade these events. The only thing you can hope to do is get in the trade where you want, and if you are right, make some money and if you are wrong, get out quickly. Seriously, if I don't know where I want to enter long or short and it's within seconds of a major news release, then the best thing for me to do is stand aside for that day.