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hello, someone has tried to trade news, I saw a system that before the time of the news puts a buy order and a sell order, then closes the order that does not take, it seems like a good idea, I do not know if anyone has tried it successfully.
About what kind of market news would we talk? Could you kindly let the people know a bit more in specific what you have in mind or what you so far have seen. Could you even give some more information about this system, who trade it and in dept other things may are very important to give a may valuable answer to your question.
My post is NOT A RECOMMENDATION. I am only creating a thread for discussion purposes.
This thread is for discussion of 10minutetrades.com and JOBracketBreakout.net.
Previously known as thenewstraders.com
Names involved: Leigh Goldstein "Trading …
"If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much." - Jim Rohn
Seems simple enough, right? Let the market do what it wants, I don't care, I'll win either way, right?
Or, maybe a little TOO simple?
In general, most strategies that seem "foolproof" - i.e. "whatever the market does, I'll win either way" end up actually as negative expectancy strategies, due to all kinds of things that are not taken into account in the superficial first analysis, and tend to really mess up the numbers.
Just a few points to think about, in your suggestion:
- News are volatile times. that means:
A. Slippage on market orders - fills can be much worse than in normal times,
B. As a result, risk could be greater than expected (or require "extra small" positions to limit it), C. If you use limit orders - you have a larger-than-usual chance of not getting filled (especially on the best and hottest rallies), or you would need an extra-wide limit order to guarantee your fill (again increasing risk or forcing smaller size).
D. greater chance of whipsaw and getting stopped out (after a bad fill on both ends of the trade - see A) only to see it reverse again.
To make matters more difficult, Much of this noise is very short term. I mean seconds, not minutes. It may not be visible on the chart (which looks "fine"), so manual backtesting - let alone "looking at a few cases and seeing great results" could be very misleading. So make sure you backtest this on valid tick data to make sure how the market really would have reacted.
Just to be clear: I'm not saying it doesn't work. I'm saying I'm doubtful it's as rosy as it would seem, and suggest you take a detailed look at some backtesting (or even forward testing with super-tiny positions) to get the real feel and realistic expectations.
News Trading is not simple....all the things that can go wrong sometimes do....and you take a loss....but 10minutetrades has the experience behind them, they have traded this type of transaction for years....last 5 months results ... I believe they started with 13K and are now at 22K...thats live trades not Sim... should look them up and see for yourself...got some good trades that are very consistent...you can look them up on YouTube also....
News trading manually was much more reliable and profitable over 10 years ago but many algo traders came into the market since then who can write code that can read the news and decipher if it should have a positive or negative effect on a stock. By the time you manually read the news yourself now and try to determine what effect it may have their algo's have already moved the market to where you would most likely take a loss if you entered.
^^ That's not how this ten minute trading system works. It's basically a bracket order three seconds before the scheduled news event.
E.g. Crude Oil report weekly at 10:30:00 AM every Wednesday. The brackets come up exactly at 10:29:57 AM for both long and short (OCO) orders. Then depending on how the price reacts based on news, i.e. straight one direction shoot or bad fill or just reversal and stopped out, you have to accept it because it happens in seconds. Very risky. But can work on less riskier trades like Non Farm Employment Payroll reports.
Disclaimer: I am not marketing for them and neither is my any affiliation or recommendation. This is my own experience.
