Welcome back, fellow traders! Today, I'm excited to dive into a popular technique that many of us swear by—the news trading strategy. If you’re looking to capitalize on market volatility, you’re in the right place!
I've shared a variety of strategies on my site, and for those interested, you can check out my article aggregated on PipsWanted. Among them, I want to focus on my favorite strategy.
For this strategy, we don’t need to reinvent the wheel. It’s straightforward and effective. Here’s how it works:
Strategy #3: The Pre-News Setup
Before major news releases, we set up two pending orders: one buy stop and one sell stop. For example, we can set both with a 5 pip take profit (TP) and a 5 pip stop loss (SL).
Here’s the breakdown:
- Set a buy stop order 20 pips above the current price.
- Set a sell stop order 20 pips below the current price.
Once the news hits, the market usually moves significantly, giving us a good chance to hit one of our take profits. Even if the market retraces afterward, there’s still a chance to hit the second TP. Remember, the goal is to keep your risks low. It’s better to take home smaller profits than to risk a large loss.
Here’s a sample code snippet for implementing this strategy:
if (orderOpenDate == currentDate)
{
// We place 2 orders: buy stop and sell stop
if (ticket < 1)
{
orderAsk = Ask - bias * Point;
orderBid = Bid - bias * Point;
ticket = OrderSend(Symbol(), OP_SELLSTOP, lot, orderBid, 1, orderAsk + Point * sl, orderBid - tp * Point, "NewsTrader", 2, 0, Red);
}
if (ticket2 < 1)
{
orderAsk = Ask + bias * Point;
orderBid = Bid + bias * Point;
ticket2 = OrderSend(Symbol(), OP_BUYSTOP, lot, orderAsk, 1, orderBid - Point * sl, orderAsk + tp * Point, "NewsTrader", 2, 0, Green);
}
}
Additional Resources:
- Check out my detailed article on news trading strategies at PipsWanted
- Find a reliable news indicator in my article here: MQL5 News Indicator
- Don’t forget to visit my blog for more insights: ForexFellow
Happy trading, everyone! May your pips be plentiful!
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