There are many different methods of trading in the financial market that can take profits even with the smallest price movements. There are also approaches that, on the contrary, are based on the fix api trading at the time of the most volatile phase of the market. This method of trading is the opening of trading positions when publishing important statistics that have the greatest impact on the price quotes. In the market, this type of trade is called news based trading.
News based trading is carried out for the purpose of quick earnings, because when new data enters the market, the exchange speculators rebuild their forecasts and open new trading positions that instantly cause increased volatility. Imagine a market boom when a lot of players compete for the same product. The same thing happens with the quotes of the financial asset in the fix api forex market. This is an excellent opportunity for a professional trader to earn at the moment, because the price for a short period of time can go up to 100 points.
For example, if the Central Bank changes its monetary policy and raises the interest rate, this indicates a toughening of the conditions. Thus, the supply of currency decreases, and the demand remains at the same level, which causes an increase in the asset value. For example, the decision to change the rate of the FED was marked by strengthening of the dollar compared to the US dollar by 80 points. This is an excellent yield potential for the trader. If he opened one lot at the fix api MT4 trading terminal (http://forexrobotshub.com/2017/12/12/mt4-ctrader/ ), he could earn approximately $800 in an hour (with a leverage of 1:100).
However, the scenario given above is very rare. Especially, if you conduct a chaotic fix api trading and do not have a special approach, because even in this trading method there is an algorithm of actions, about which I am going to tell you today.
Profitable method of news based trading
In order to conduct trading based on the news, each trader must be prepared for trading on this algorithm.
- Initially, you need to determine the news on which you plan to trade and see its dynamics on history. If this news does not cause more than 20 points of movement for a currency pair, then such a game is not worth the candle. If the expected indicator regularly shows 50-100 points of movement, then certainly it is worth choosing it for your trade.
- The second stage is to establish two pending orders: buy stop and sell stop. These two pending orders must be accompanied until the opening of the trading position. However, it is necessary to ensure that the transaction does not open on the basis of spread expansion or price noise on the threshold of data publication.
- After the news comes out, the quotes with a high probability will break one of the pending orders and you will have an open position for one “delay.” An order that is not open must be removed in order not to get into the lock.
- The open position is connected with further actions. It is your decision when to close a position. However, I would advise you to transfer almost immediately the transaction to the breakeven zone (to set a stop loss at the opening level) and include a trailing stop.
As you can see, this algorithm does not guarantee the fixation of absolutely all traffic after the news, but it allows you to fix a huge percentage of profitability in a single transaction and in the shortest time period. Moreover, the news based trading fits perfectly into the more standard trading systems for working in the fix api forex market and can be combined with other manual algorithms and automatic systems. Therefore, I recommend the fans of speculative trading and quick earnings to test the algorithm described above and which can be implemented in the form of a speculative trading robot (http://forexzzz.com/product/forex-zzz-lock-arbitrage/ ).