One of the STRobot users was asking about news trading so I’ve finally gotten down to writing it. News in the forex market is normally preceded by a period of flatness. Especially things like NFP and FOMC.
My advice on news trading is simple and the version of STROBOT 50.8 deals with this.
I will point out I don’t actually do any trading myself – although I know a lot about it my robot does it for me – but I taught him everything he knows.
Here’s what STRobot would do:-
– NO trades in the flat market.
– Place ENTRY ORDERS only (STOP orders) when there is a correct technical setup
– STRobot will phase the news – so he trades AFTER the result – this can be a break hook and go structure or something else. News creates unpredictability in the markets, we are not here to gamble.
– On http://www.forexnewsbot.com you can often find statistics and other information about what the market expects from a news result but be careful – big moves and big losses (remember the CHF move).
As I said I don’t actually trade myself I taught STRobot to do it!
More about STRobot
Well this new version is quite a landmark with STRobot winning 70% of trades on backtests. I’m currently testing with different stops and go safe values to really get him optimised.
– STRobot has been taught to recognise a flat market and stay out
– You will see him set up entry orders some of which do not actually take
– His Automatic Trailing stop will trail the market at the level of your stop loss until within 20 pips of target then switch to a 30 pip trailing stop
– He will not trade for less than 100 pips target
I have published a couple of backtests (will do more later) click here to see them.