Topic: Ideas and strategies for news avoidance?

When major high impact news items (NFP, Rate announcements, FOMC, GDP, etc.) come out they can obviously cause some major gyrations in the markets.  If you're discretionary trading often times you'll just sit out those events and wait until the dust settles before making more trades.  How are you all handling that from a long running algo standpoint? 

There's the spreadlevel pro which limits your exposure to the crazy spreads that happen around news but it's not going to save existing positions from major reversals or spikes.  I know some of the professionals use volume based safeguards etc to stop trading and or shutdown existing positions so I was curious if anyone had decent strategies beyond just turning off trading and closing positions by hand (which only works for expected news events anyway.)

Re: Ideas and strategies for news avoidance?

I do not think that news avoidance is going to be satisfactory as there is so many announcements daily.

Use a higher time frame to avoid the news chop would be what I suggest as well as a stop loss on every entry

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

Re: Ideas and strategies for news avoidance?

I want this news filter very much too (exits before news, and no entry in the news time) smile When I was creating EA with mql/mt4 I had created this filter. That EA code read big csv file with all the news in it, which was taken from fxdaily calendar, RED news date/time and symbol. It was great to back test these exits and no entry filter, however it was very lagggggy, and no easy way to update csv file, was forced to do it manually. So after some time, not finding anything good I just stopped using it. But it would be very nice to have FAST similar thing with fsb smile

Re: Ideas and strategies for news avoidance?

I think maintaining the csv file would be a little strenuous, we would have to pay someone to do that.

I do not think the news has much effect on 240 minute strategies, at least i have not seen that.

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

Re: Ideas and strategies for news avoidance?

Yep, it would be a toy to play in <m15 time frames.

Re: Ideas and strategies for news avoidance?

I had a similar one on ctrader.  I heard rumor that they cut off the data feed recently or changed it's format, not sure on that.  In any case it'd be nice to have things shut down for scheduled high priority news items but I'm not sure offhand how to do that without manual intervention. 

When Yellen was speaking in Jackson Hole last week I took my live bots offline and didn't crank them back up till Monday and it likely saved some issues.  Most of mine on demo did alright but some of the ones already had positions on the wrong side and they got hammered.

If you had a means to tell the news programmatically you might be able to have an ea close other ea positions associated with impacted pairs but not sure that an external ea can shutdown new trading (other than terminating the mt4 process).