Trading through news

Discussion in 'Automated Trading' started by NoDoji, Sep 7, 2010.

  1. NoDoji


    I'm looking for input from automated traders with regard to holding positions through news releases vs exiting prior to the news.

  2. That's just plain crude, ND. Turn off the TV for cryin out loud.

    Man who fight with wife all day get no piece at night.
  3. Great question, I'm surprised at the response or lack of such. I've struggled with this issue too. I've spent an awful amount of time and effort keeping the parameters of my intraday system code-able (I think) but those scheduled news releases are my White Whale. Some (releases) are no problem others (the biggies) like FOMC or NFP create "major blips" that send me back to the drawing board.

    Sorry ND, I wish I had some constructive insight. When my best ideas to fix this issue fail, I often wonder if I'm trying to build The Perfect System .:confused:
  4. Isn't this the same dilemma as asking yourself (on one of the few occasions when you’ve a trade that’s actually in profit!)...” should I take my profit now, and risk missing an even bigger move in my favour later on? ... or, should I hold out until my profit target is reached, and risk the position turning against me?”

    In the case of news, Went Fishing’s “major blip” often (in fact, usually!) stops me out (at least it has lately); and then, sure enough, price often reverses and my target is reached! Hilarious!

    My own backtests suggest, though, that unless you know beforehand how price is going to move after the “major blip” is over (which you don’t know), it is best to accept that your stop has been hit, and exit.

    That is, stick with the plan.

    And then get ready for the next trade...

    If you use hard stops, a stop is a stop.
    Or, a target is a target.


    [Apologies in advance if I have misunderstood what you were getting at ...]
  5. NoDoji


    I appreciate the input I've gotten here and via PM. It's still pretty early in the testing process. So far, it's trading through any and all news and doing well with it. Tomorrow will be interesting because it will trade through a major (and almost always volatile) news report.