Thread: Trading Tip – Avoiding News Volatility

Trading Tip – Avoiding News Volatility

When trading the smaller time frames, you have to be aware of News Releases. These can cause the market to spike & can cost you profits.
Of course, some people like trading them, but if you are a trend trader, they can kill your account.

The win/loss ratio on the lower 5m charts is around 65% to 75% (if you have a good trading system), depending on the pair – very good.
But, on the 4 Hour Charts it is up around the 75% to 90% mark.

And, this is because the lower time frames are influenced by “random noise” like News Releases.
Your main focus when trading should be to minimize your risk, and one way to minimize do this is to avoid trading around News Releases.

But, sometimes it’s hard to remember that news is coming up.
Some people use special indicators, but these can slow up Meta Trader, others use kitchen timers to warn them.

Here is another method.
At the start of the day, open up your news Calendar, set it to your time & mark on your chart where the main News Releases will occur – ahead of the candles.

Just draw the line, Right Click on the Line & go into its Properties, and under “Parameters” you can tell the line to jump hours ahead off the chart to when the News occurs.

Then as the time comes closer, the Line will appear on your chart as the candles march forwards.

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Originally Posted by Asaju Pro

Trading Tip – Avoiding News Volatility

When trading the smaller time frames, you have to be aware of News Releases. These can cause the market to spike & can cost you profits.
Of course, some people like trading them, but if you are a trend trader, they can kill your account.

The win/loss ratio on the lower 5m charts is around 65% to 75% (if you have a good trading system), depending on the pair – very good.
But, on the 4 Hour Charts it is up around the 75% to 90% mark.

And, this is because the lower time frames are influenced by “random noise” like News Releases.
Your main focus when trading should be to minimize your risk, and one way to minimize do this is to avoid trading around News Releases.

But, sometimes it’s hard to remember that news is coming up.
Some people use special indicators, but these can slow up Meta Trader, others use kitchen timers to warn them.

Here is another method.
At the start of the day, open up your news Calendar, set it to your time & mark on your chart where the main News Releases will occur – ahead of the candles.

Just draw the line, Right Click on the Line & go into its Properties, and under “Parameters” you can tell the line to jump hours ahead off the chart to when the News occurs.

Then as the time comes closer, the Line will appear on your chart as the candles march forwards.

http://www.asajuprosignal.com/subscription.html

Fantastic advice! I am a trend trader (I primarily trade the 30 Min interval) and I have been looking to completely avoid my trades being adversely affected by news releases. I had considered ceasing trades altogether during volatile news periods, but I was not sure if this was a standard practice in the industry. Thanks much.