• How to trade on breaking forex news Share my system

    read:2023/2/25 14:06:54


    Major Forex cashback forex trading strategy (also known as news volatility arbitrage trading) forextradingaccountstype designed to trade forextradingaccountsregister major Forex information with minimal risk This strategy can only be used for major Forex news releases such as US GDP, non-farm employment or interest rate decisions Although all currency pairs react to this, due to lower spreads forex trading accounts higher liquidity, USD currency pairs The best results can often be achieved by featuring a broker that avoids the problems of increasing spreads and currency devaluation. Select an important news release that has a strong impact on the FX currency pair For EUR/USD, I recommend opening buy and sell positions on US GDP, US non-farm payrolls, US interest rate decision, Eurozone interest rate decision and US PCE report one minute before the news release as scheduled This helps prevent the currency you are trading from depreciating and increasing spreads Depending on the expected volatility of the news, set the stop loss on both Set the stop loss for both positions to 10-20 standard pips and the take profit for both positions to 5 x SL. This provides you with the necessary risk/reward ratio. If your broker uses the "First In First Out" (FIFO) mode of trading, it is still possible to trade on the news with this strategy at the level where you would place a stop loss on the initial buy/sell position. This example depicts a USD/CAD trade based on the @M30 chart on November 6, 2015 at 13:30 UTC when the US and Canada jointly released the October unemployment rate. The level is the red line above and below the entry and the pink line is the stop loss level of the buy trade after it is moved to the capital preservation position The profit level is the green line above and below the entry During the first post-annual data release, the sell is closed by a stop loss The exit is marked with a red arrow towards the left side of the news release for one hour and the buy is closed due to timeout If the target level is not reached, but sufficient profit is still made to cover the sell loss and generate a high return Exits are marked with a blue arrow towards the left