The essence of the strategy is to catch the movement and make money at the moment of the release of important news, becauseof which, most often, the of the instruments we are interested in increases significantly, and it does not matter from the direction where the price will go.
1) the entry point is located outside the range, in which the price was moving before the news was released
2) place two identical deals at the same distance in different directions
3) do not forget about stop loss
4) do not forget to set take profit
What a trader can get by trading on the news
1) At high , slippage can be obtained. At such a moment, the trader can get both a larger loss than the planned one, or a smaller profit, and quite the opposite. More often slippage is bad for the trader's account
2) False breakout, which can deceive you and give you a loss
3) Bad work of the broker, usually if you use the services of "Kitchen". they "process" a lot of traders on the news in their favor.
What news is it permissible to trade such a strategy on:
🔼 Retail Sales
🔼 Trade Balances
The movement that a trader can pick up can be up to 50-70 points in some currency pairs.
What currencies and why
These are the most traded currency pairs in the world, gold is not taken into account, the expected movement in these pairs can be up to 50-70 pips.
Important to remember ❗ :
🔼 These are the most aggressive strategies
🔼 You, during the news release, have no advantages, without this it is difficult to win
🔼 And it is best not to trade before and after the news release for at least half an hour.
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