Important News Trading Strategy
Important Forex News trading strategy
developed specifically to trade Forex news with as little risk as possible. It
can be used only for important Forex news releases such as U.S. GDP, non-farm
payrolls and interest rate decisions. Although all currency pairs react on such
news, the USD-based currency pairs show the best result.
- Trades will have fundamental background.
- Not very hard to set up.
- High success rate.
- Important news events are quite rare.
- High volatility and spread widening during important news releases.
How to Trade?
- Choose an important news release that has an effect on the Forex pairs.
- For EUR/USD I recommend: U.S. GDP, U.S. nonfarm payrolls, U.S. interest
rate decisions, Eurozone interest rate decisions and U.S. budget deficit
- Enter both Long and Short positions approximately 30 minutes before the
releases (to protect yourself from slippage and ungodly spreads).
- Stop-loss for the Long position should be set around the 1-2 hour local
- Stop-loss for the Song position should be set around the 1-2 hour local
- Take-profit for both positions should be set at least to twice the level of
stop-loss. I'd recommend even setting it to 3 * SL.
- Don't forget to cancel the untriggered orders after the news went out.
The example chart depicts EUR/USD M15 behavior during the interest rate
decision announcement by the FOMC on September 23rd, 2009. Both stop-loss levels
are clearly visible in this situation. The conservative take-profit levels are
easily hit. Only Long position triggers a TP, while the Short one is closed by
It's possible to trade such news with the pending orders for more potential
profit (setting entry points at the same levels as the stop-loss levels are set
for the opposite position). But it's more risky.
Use this strategy at your own risk. EarnForex.com can't be responsible for
any losses associated with using any strategy presented on the site. It's not
recommended to use this strategy on the real account without testing it on demo
Do you have any suggestions or questions regarding this strategy? You
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