NEWS TRADING

Forex news trading is probably one of the most exciting forms of trading because it can produce instant profits and instant gratification. I was never a huge fan of news trading but I am getting lots of questions in terms of how to trade around big Forex news events.

Through this news trading strategy guides, you’ll learn how to trade the Non-Farm Payroll Report (NFP), FOMC, central bank interest rate decisions and any big Forex news events. What you’re about to learn throughout this Forex news trading guide is extremely valuable because there are a tiny, tiny few traders in the entire world who apparently are able to correctly trade the news.

What is Forex News Trading

The news represents great profit opportunities for Forex traders. By news, we mean various economic data releases. Every major economy regularly publishes statistics like GDP, inflation, unemployment rate, etc. If you trade Forex during the times of these releases, you have a chance to make a lot of money. However, we have to warn you that potentially big profits always come hand in hand with bigger risks. Volatility spikes during these periods and prices may move in a disorderly fashion. If you don’t have a solid trading plan for a particular event, it’s better not to engage in any trades at all.

WHAT NEWS SHOULD I BE LOOKING AT

Before we even look at strategies for trading news events, we have to look at which news events are even worth trading. Remember that we are trading the news because of its ability to increase volatility in the short term, so naturally, we would like to only trade news that has the best forex market moving potential. While the markets react to most economic news from various countries, the biggest movers and most watched news come from the U.S. The reason is that the U.S. has the largest economy in the world and the U.S. Dollar is the world’s reserve currency. This means that the U.S. Dollar is a participant in about 90% of all forex transactions, which makes U.S. news and data important to watch. With that said, let’s take a look at some of the most volatile news for the U.S.

WHERE CAN I GET THE NEWS

You can always get the news from myFXbook and ForexFactory. For those using smart phones, the best thing to do is to download myFXBook.

THE DANGER BEHIND NEWS TRADING

Because the forex market is very volatile during important news events, many forex brokers WIDEN the spread during these times. This increases trading costs and could hurt your bottom line. You could also get “locked out” which means that your trade could be executed at the right time but may not show up in your trading station for a few minutes.

You could also experience SLIPPAGE. Slippage occurs when you wish to enter the market at a certain price, but due to the extreme volatility during these events, you actually get filled at a far different price.

And there is a possibility of prices swinging both ways quickly. 

Trading news in the Forex market is classified as a directional bias or a non-directional bias trade.

What you want to look for in your MT4 Expert Advisor (EA) for News Trading

Before we even go to what to look out for, let me explain what an MT4 EA (Expert Advisor) is for our friends who are new to this. An MT4 EA (Expert Advisor) basically programs in the terminal that has been developed in MetaQuotes Language 4 (MQL4) and used for automation of analytical and trading processes. They allow your Metatrader 4 to perform prompt technical analysis of price data and manage trading activities on the basis of signals received. Some MT4 EA (Expert Advisor) are automatic, meaning it will trade on your behalf, some of them are basically “assistance” to your trading and you have to manually enter the trade.

So, how that I have explain what MT4 EA (Expert Advisor) is or are, do take note of this. THERE ARE THOUSANDS of people making claims that you can be rich using their MT4 EA (Expert Advisor). And if this is true, trust me, they will not be stuck as a programmer and they will be using their MT4 EA (Expert Advisor) to make million of dollars for themselves.

Personally, I will like to see an MT4 EA (Expert Advisor) as an extension or assistance to me. Automating some of the process that I might be too slow in executing, or taking my instructions to handle some trades while Pikapool is sleeping.

So let’s us take a look at the chart below and compare some of the features of MT4 EA (Expert Advisor) designed specifically for trading news breakout.

MT4 EA (Expert Advisor) – News Trading

  • MT4 EA Features

  • News Features
    News Features
  • - Connection to News- Connection to News
  • - Filter Specific News Type- Filter Specific News Type
  • - Filter News By Countries- Filter News By Countries
  • - Filter News By Impact Type- Filter News By Impact Type
  • Money Management
    Money Management
  • - Manual Risk % Based on Equity- Manual Risk % Based on Equity
  • - Manual Entry of Lot Size- Manual Entry of Lot Size
  • - Auto Lot Size Based on % Risk- Auto Lot Size Based on % Risk
  • EA Main Features
    EA Main Features
  • - Manual TP (Take Profit)- Manual TP (Take Profit)
  • - Manual SL (Stop Loss)- Manual SL (Stop Loss)
  • - BreakEven Trigger- BreakEven Trigger
  • - Trailing Stop- Trailing Stop
  • - Trail Before Break Even- Trail Before Break Even
  • - PipsAway (Auto Set Buy and Sell)- PipsAway (Auto Set Buy and Sell)
  • - Time for Pending Orders Before News- Time for Pending Orders Before News
  • - Time for Cancelling Orders After News- Time for Cancelling Orders After News
  • - OneCancelOther- OneCancelOther
  • - Manual Trade- Manual Trade
  • - Slippage- Slippage
  • - Multiple Pair Currency Trading- Multiple Pair Currency Trading
  • Quantina Forex News Trader

  • £75

    Five License

  • News Features
  • - Connection to NewsConnection to Forex Factoryyes
  • - Filter Specific News Typeyes
  • - Filter News By Countriesyes
  • - Filter News By Impact Typeyes
  • Money Management
  • - Manual Risk % Based on Equityyes
  • - Manual Entry of Lot Sizeyes
  • - Auto Lot Size Based on % Riskyes
  • EA Main Features
  • - Manual TP (Take Profit)yes
  • - Manual SL (Stop Loss)yes
  • - BreakEven Triggeryes
  • - Trailing Stopyes
  • - Trail Before Break Evenyes
  • - PipsAway (Auto Set Buy and Sell)yes
  • - Time for Pending Orders Before Newsyes
  • - Time for Cancelling Orders After Newsyes
  • - OneCancelOtheryes
  • - Manual Tradeyes
  • - Slippageyes
  • - Multiple Pair Currency Tradingyes
  • News Trader

  • $Free

    Not Applicable

  • News Features
  • - Connection to Newsno
  • - Filter Specific News Typeno
  • - Filter News By Countriesno
  • - Filter News By Impact Typeno
  • Money Management
  • - Manual Risk % Based on Equityyes
  • - Manual Entry of Lot Sizeyes
  • - Auto Lot Size Based on % Riskyes
  • EA Main Features
  • - Manual TP (Take Profit)yes
  • - Manual SL (Stop Loss)
  • - BreakEven Trigger
  • - Trailing Stopyes
  • - Trail Before Break Evenyes
  • - PipsAway (Auto Set Buy and Sell)
  • - Time for Pending Orders Before Newsyes
    Default = 10 Seconds
  • - Time for Cancelling Orders After Newsyes
  • - OneCancelOther
  • - Manual Trade
  • - Slippage
  • - Multiple Pair Currency Trading
  • EA News

  • US30

    One License

  • News Features
  • - Connection to NewsCan be extended to 250 Tests
  • - Filter Specific News Type4 Times a Year
  • - Filter News By Countries4 Times a Year
  • - Filter News By Impact Type
  • Money Management
  • - Manual Risk % Based on Equity
  • - Manual Entry of Lot Size
  • - Auto Lot Size Based on % Risk
  • EA Main Features
  • - Manual TP (Take Profit)
  • - Manual SL (Stop Loss)
  • - BreakEven Trigger
  • - Trailing Stop
  • - Trail Before Break Even
  • - PipsAway (Auto Set Buy and Sell)
  • - Time for Pending Orders Before News
  • - Time for Cancelling Orders After News
  • - OneCancelOther
  • - Manual Trade
  • - Slippage
  • - Multiple Pair Currency Trading
  • CAP News Trading

  • US30

    One License

  • News Features
  • - Connection to News
  • - Filter Specific News TypeUnlimited
  • - Filter News By CountriesUnlimited
  • - Filter News By Impact Type
  • Money Management
  • - Manual Risk % Based on Equity
  • - Manual Entry of Lot Size
  • - Auto Lot Size Based on % Risk
  • EA Main Features
  • - Manual TP (Take Profit)
  • - Manual SL (Stop Loss)
  • - BreakEven Trigger
  • - Trailing Stop
  • - Trail Before Break Even
  • - PipsAway (Auto Set Buy and Sell)
  • - Time for Pending Orders Before News
  • - Time for Cancelling Orders After News
  • - OneCancelOther
  • - Manual Trade
  • - Slippage
  • - Multiple Pair Currency Trading
  • Forex Factory News

  • US35

    One License

  • News Features
  • - Connection to News
  • - Filter Specific News Type
  • - Filter News By Countries
  • - Filter News By Impact Type
  • Money Management
  • - Manual Risk % Based on Equity
  • - Manual Entry of Lot Size
  • - Auto Lot Size Based on % Risk
  • EA Main Features
  • - Manual TP (Take Profit)
  • - Manual SL (Stop Loss)
  • - BreakEven Trigger
  • - Trailing Stop
  • - Trail Before Break Even
  • - PipsAway (Auto Set Buy and Sell)
  • - Time for Pending Orders Before News
  • - Time for Cancelling Orders After News
  • - OneCancelOther
  • - Manual Trade
  • - Slippage
  • - Multiple Pair Currency Trading
  • CNT News Trading

  • $Free

    One License

  • News Features
  • - Connection to News
  • - Filter Specific News Type
  • - Filter News By Countries
  • - Filter News By Impact Type
  • Money Management
  • - Manual Risk % Based on Equity
  • - Manual Entry of Lot Size
  • - Auto Lot Size Based on % Risk
  • EA Main Features
  • - Manual TP (Take Profit)
  • - Manual SL (Stop Loss)
  • - BreakEven Trigger
  • - Trailing Stop
  • - Trail Before Break Even
  • - PipsAway (Auto Set Buy and Sell)
  • - Time for Pending Orders Before News
  • - Time for Cancelling Orders After News
  • - OneCancelOther
  • - Manual Trade
  • - Slippage
  • - Multiple Pair Currency Trading

terminology

What is Slippage
What is Pipsaway