Hello, After a few months of experimenting with trading forex news, I'm still unable to find a decent profitable strategy. I'm wondering if such a strategy exists? (Trading during forex news releases) To summarize, I found some strategies wonderfully worked on demo however they failed when live trading due to slippage issues. I found that for the same broker, entry slippage (e.g. Market pending order) equals exit slippage (e.g. stop loss) more or less and that both slippages are as bad. The brokers I used would fill me after at least 75% of the move occurred. This means that I would get a much smaller profit or my strategy would fail because price will reverse the moment I get filled. This also means that traders that caused at least 75% of the price movement got filled faster than me for certain reasons (Probably related to the differences in brokers). So I was wondering if someone uses such a strategy in an efficient way due to broker slippage improvements? I wouldn't mind trying many brokers if such a strategy works. I'd like to know if there is such a broker that can make the strategy succeed? Does anyone have some hints? Otherwise, I would start experimenting with a different strategy Thank you for your time
I am not aware of any consistent profitable news strategy in FX. You can make some decent profits over 3 or 6 months, but then you make losses with the same strategy. There are too many shifts here in the interpretation of the deviations of the expectations when important news come out over the time. Just look elsewhere if you want to find a really profitable strategy.
In my experience, I had never been able to make profit consistently with a single strategy and that’s why I had to change my strategies at times.
Who would fill you during news events? Who is that idiot willing to lose like that? If you got a guaranteed fill (without spread widening) then everybody would just put a 5 pip buy stop order above market and 5 pip stop order below market 1 minute before employment report. Wrong. Noone is getting filled and making profits like that. Bids and asks get requoted in thin conditions. There is no "differences in brokers" like that.
The purpose of this thread is to find a broker that can potentially fill up orders faster than other brokers durings news releases. I didn't mean to find a strategy that is always profitable. @tsfx It would be the same idiots that would be filling the traders that trade during the news. Let's not forget that when the market makes a big move during news announcements, it occurs because some brokers/liquidity providers are filling orders at this time. If my order is triggered after 75% of the move occurred, it means that 75% of the orders were filled before me. Those orders were filled by brokers that I would like to know. I don't mind having slippage but my purpose is to significantly reduce slippage. I don't intend to find a guaranteed fill. I wouldn't mind having a certain slippage value on each news event. I wouldn't mind having bad trades. Most of the times I am getting filled during price reversals. I am pretty sure that many traders got enough profit by using such strategies especially in the past (a few years ago). But brokers have been changing their ways. I want to find brokers that make better fills. There are different types of brokers (STP, DMA, ECN etc). There are different liquidity providers. Some liquidity providers probably priorize big orders or instutions' orders etc
Have automation that trades news reports 24 hours, I only use forex for very long term trading, day trading I use futures with limit orders on currencies, Indexes, energies.... same program for 20 plus years....
Liquidity and volatility don't work like that. It absolutely does not mean that. I'll save you a lot of time - you won't find a broker like that.
@tsfx Any justification? Is there a guide I can read that will confirm this? @Handle123 Thank you for the info. These strategies are in my to do list (except for the one about long term trading) alongside some strategies based on stocks during news releases and/or market open
I suspect you are trading spot forex / CFD. If you are doing day trading, the chances of making $$$$ is around zero due to horrific bid-offer spread. I switched to currency futures about 2 decades ago. You can trade the currency futures (EUR GBP AUD JPY ...) from say CME Exchange.
look up liquidity vs volatility in google or just ask chatgpt. And it's common logic. If i was wrong, then everybody would be a trillionaire trading news. There simply isn't an idiot out there willing to "go short volatility" (read: counter your trade) when there's a 99% chance for a volatility spike. In forex, you are filled by market makers/liq providers not by other retail traders. Do you really think you are outsmarting them?