Forex strategies » Trading the news (NFP)
Strategy Overview
Forex Strategy Builder v2.6.1.0
Strategy name: Trading the news (NFP)
Date: 09.5.2008 г. 12:39:39
Description
Trading on news - U.S. non-farm payrolls (NFP)
We do not actually analyze the news itself but catch the price movement after its announcement. We assume that if the news is good, it will raise the price. (In this example, the good U.S. news lowers the EURUSD price.) Therefore, we watch the effect of the news. If the price goes up, we buy and if it goes down, we sell.
The "Price Move" indicator sends entry orders at a price higher and lower than the current one. The key factor is to place our entry orders at the time of the news announcement.
The U.S government publishes the NFP report at 08:30 a.m. eastern time on the first Friday of every month. For that purpose, we use the following entry filters:
"Day of Week" – it specifies the Friday as an entry day.
"Entry Time" – sets the entry orders at 08:30 a.m.. The execution must take place between 08:30 a.m. and 09:00 a.m.. In this example, we use 15:30 and 16:00 because the FSB data is from the Eastern Europe time zone (-7 hrs.). (The Entry Time indicator works best when its "from" time is equal to the bar opening time. For that reason, we use a 30min chart.)
The "Enter Once" filter allows one entry per month only. (On the First Friday - not every Friday.) It also cancels the second entry order after the first one has been executed.
We use a "Stop Limit" indicator for exit the market. It places Stop Loss and Take Profit orders.
You can also try a Trailing Stop exit.
Logic
Opening (Entry Signal)
Open a new long position 5pips above the bar open price when all the following logic conditions are satisfied:
- the day of week is from Friday (incl.) to Saturday (excl.); and
- the entry time is between 15:30:00 (incl.) and 16:00:00 (excl.); and
- this is the first entry during the month.
Open a new short position 5pips below the bar open price when all the following logic conditions are satisfied:
- the day of week is from Friday (incl.) to Saturday (excl.); and
- the entry time is between 15:30:00 (incl.) and 16:00:00 (excl.); and
- this is the first entry during the month.
Closing (Exit Signal)
Close an existing long position when the market falls 10 pips or rises 60 pips from the last entry price.
Close an existing short position when the market rises 10 pips or falls 60 pips from the last entry price.
Additional entry** signals handling
Entry signal in the direction of the present position:
- An averaging is not allowed. Cancel any additional order, which is in the same direction.
Entry signal in the opposite direction:
- A present position modification is not allowed. Cancel any additional order, which is in the opposite direction.
Trading Sizes
Trade always a constant number of lots.
- Opening of a new position - 1 lot.
Protection
The strategy does not provide a permanent loss limitation.
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* Use the indicator value from the previous bar for all indicators marked with asterisk!
** The averaging rules concern the entry signals only. Exit signals close a position. They are not allowed to open, add or reduce one.
Environment
| Market | ||
| Symbol: | EURUSD | |
| Time frame: | 30 Minutes | |
| Spread: | 4 pips | (4,00 USD) |
| Swap Long: | 1 pip | (1,00 USD) |
| Swap Short: | -1 pip | (-1,00 USD) |
| Slippage: | 0 pips | (0,00 USD) |
| Lot size: | 10000,00 EUR | |
| Leverage: | 1/100 | |
Account | ||
| Initial account: | 10000,00 USD | |
| Required margin: | 100,00 USD for each open lot | |
Strategy Properties
| Additional entry signals handling | |
| A same direction signal | Does nothing |
| An opposite direction signal | Does nothing |
Trading size | |
| Maximum open lots | 20 |
| Entry lots | 1 |
| Adding lots | 1 |
| Reducing lots | 1 |
Permanent loss protection | |
| Permanent Stop Loss | None |
Indicator Slots
The slots show logic for the long positions only. Forex Strategy Builder computes proper logic for the short positions automatically.
| Base price | - Open |
| Price move | - 5 |
| Use previous bar value | - No |
| From (incl.) | - Friday |
| To (excl.) | - Saturday |
| From hour(incl.) | - 15 |
| From min(incl.) | - 30 |
| Until hour(excl.) | - 16 |
| Until min(excl.) | - 0 |
| Stop Loss | - -10 |
| Take Profit | - 60 |
Statistic Information
| Market | Account | ||
|---|---|---|---|
| Symbol | EURUSD | Intrabar scanning | Not accomplished |
| Period | 30 Minutes | Interpolation method | Pessimistic scenario |
| Number of bars | 20000 | Ambiguous bars | 9 |
| Date of updating | 18.04.08 | Tested bars | 19999 |
| Time of updating | 22:30 | Initial account | 10000,00 USD |
| Date of beginning | 28.08.06 | Account balance | 10207,00 USD |
| Time of beginning | 21:30 | Minimum account | 9958,00 USD |
| Data refining | Switched off | Maximum account | 10249,00 USD |
| Minimum price | 1,2483 | Maximum drawdown | 42,00 USD |
| Maximum price | 1,5981 | Gross profit | 389,00 USD |
| Average Gap | 1 pips | Gross loss | 182,00 USD |
| Maximum Gap | 131 pips | Sent orders | 406 |
| Average High-Low | 11 pips | Executed orders | 40 |
| Maximum High-Low | 130 pips | Dealt lots | 40 |
| Average Close-Open | 5 pips | Winning trades | 7 |
| Maximum Close-Open | 125 pips | Losing trades | 13 |
| Maximum days off | 4 | Win/loss ratio | 0,5384616 |
| Maximum data bars | 20000 | Time in position | 0 % |
| No data older than | No limits | Charged spread | 80,00 USD |
| No data newer than | No limits | Charged rollover | 3,00 USD |
| Charged slippage | 0,00 USD | ||
| Total charges | 83,00 USD | ||
| Balance without charges | 10290,00 USD | ||
| Account exchange rate | 1,0000 | ||
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