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Scalping system #1 (Economic news releases)


 
Look for the important news to be released. Choose the most influential ones that are expected to shake the market well. Once got news (last can be found in any Forex economic calendar) find out which currency pair is going to be affected.

Now, 15 minutes before the data is released place buy/sell stop orders on both sides 15 pips away from the current price.


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I saw MT4 platform, but I don't know how to make two MA appear on MACD. Try asking support team at your broker website.
Actually, it shouldn't be a problem to trade without a second MA since MACD's histogram flipping along 0 line reflects the same data as two MA cross. So, you may rely 100% on the histogram itself.

You may choose the lowest or the highest leverage, it doesn't matter as much as position sizing for a mini-account. What you absolutely must do is to trade the smallest lot possible. E.g. if your broker allows you to trade 1000 units lot, that's very good. If you are limited to 5000 units minimum - that's getting dangerous with your small investment. But if your smallest trading position is going to be 10000 units, that's way to much!
Once you are done with position sizing you can freely choose the highest leverage available. It will allow you to have the lowest margin requirements and won't affect your trading as long as you keep trading small lots.

Regards,
Edward.

Is there any chance that every important news release the market won't go one way up or down and not go back straight?

Rgds,
Agus

Hi Agus,

There is always a chance to be caught in a double order hit and end up with two losing trades. But usually you have a window before the market turns against you. If you scalp it without leaving trades open too long, you have a better chance to escape unhurt and make some profit.

Regards,
Edward.

Hey Edward

How do you know which releases will have a big move?

I have a calander which shows the importance of the releases but still the ones with high importance sometimes have little effect.

Also how do you know which individual currency pair to trade?

My calander tells me the currency like EUR or USD but it doesn't say which pair.

Thanks
Timmy

Hi Timmy,

From Economic data and news releases we learn about current economic situation of a particular country (and then we trade its currency). That's why you see only one currency abbreviation in front of each news. There are no news for currency pairs.

From Forex Economic Calendar we can initially learn which news are expected to have high impact on the market and which aren't. In addition to that you would need to analyze numbers of Previous and Forecast columns in order to determine the chances of market being "excited" or calm about the news. When Actual numbers are out traders also quickly analyze the level of unexpectedness of the Actual data, e.g. how much does it differ from the Forecast value.
I'd suggest reviewing Forex fundamental analysis website for detailed information.

Regards,
Edward

thats a risky venture

I Ed -
I've come across a similar strategy which I'm still testing.

Basically it goes like this:
When the news breaks, wait for a 15 min candle to close.
Then place 2 orders - a buy 2 pips above the high of the closed 15 min candle and a sell 2 pips below the low. It can be a bit frustrating watching the price go berserk while you wait for the 15 min candle to close - but not as frustrating as getting into a trade too soon after the news and watching it jump the wrong way...
Waiting for the 15 min closed candle allows the mkt to settle a bit and make a definite move in 1 dir. Set a 20 pip Take prof, and 20 pip SL. Don't trade if the range is bigger than 70 pips, and obviously don't trade if the spreads are too big during this volatile period.

Once you start making a prof you can make use of a trailing SL.
If your order is triggered and the trade moves against you - let your SL kick you out and the watch to see if the other order is reached on the other side. In most cases if the initial trade goes against you and the other order fires - you will recover you losses with the 2nd trade.

Like I said - I'm still testing this strategy, but so far so good.
Good luck!
Keep up the good work!
Regards
Dean SA

Nice one!
Thanks, Dean. That's a smart way to trade news!
I'll publish it in news box above :)
Happy trading!

Regards,
Edward