Preparation and Timing:
Plan to trade around high-impact news releases, such as the ISM Manufacturing Index.
Ensure you are online and ready to trade at least 5 minutes before the scheduled news release time.
Use a charting platform to monitor the currency pair you're interested in.
Check the current price level approximately 15 minutes before the news release.
Setting Up Orders:
Identify the current price level on the chart, for instance, let's say it's at 1.9696.
Prepare to place two pending orders:
BUY STOP order at 1.9696 +12 pips (1.9708)
SELL STOP order at 1.9696 -12 pips (1.9684)
These orders aim to capitalize on potential rapid market movements following the news release.
Order Parameters:
Set a take profit (TP) target of +12 pips for each order.
Place a stop-loss (SL) of -12 pips for each order to manage risk.
This ensures a balanced risk-reward ratio for each trade.
Execution:
Place the pending orders approximately 2-3 minutes before the news release.
Ensure both BUY STOP and SELL STOP orders are in place.
News Release:
At 10:00 am (Indonesia time), the news is released.
Monitor the market closely for immediate price action following the news.
Outcomes:
If the BUY STOP order is triggered, aim to exit the trade once it reaches +12 pips.
If the SELL STOP order is triggered, aim to exit the trade once it reaches +12 pips.
Remember to strictly adhere to the predefined TP and SL levels for risk management.
Risk Management:
Limit the risk exposure by sticking to the predetermined pip values for TP and SL.
Maintain discipline and avoid adjusting TP or SL levels impulsively.
Profit Calculation:
Aim for a modest profit of +12 pips per trade.
Consistently executing successful trades can lead to significant cumulative profits over time.
Trade Quantity and Lot Size:
Focus on the quantity of trades rather than chasing large pip gains.
Trade with a lot size that matches your risk tolerance and account size.
Example:
Let's assume you trade 20 high-impact news events in a month, each yielding +12 pips profit.
With a lot size of 0.2, you could potentially earn $480 using this strategy in two weeks.
Conclusion:
This strategy emphasizes disciplined trading around high-impact news events.
By aiming for modest profits with controlled risk, it offers a systematic approach to trading.
Remember, adapt the strategy to your own risk tolerance, trading style, and market conditions, and always practice proper risk management.
US. CALENDAR |
Rating |
Other Name |
Avg. Move |
||
Nonfarm Payrolls
|
A+ |
The Employment Report |
124 PIP |
||
FOMC Interest Rate |
A+ |
FOMC Interest Rate Decisions |
64 PIP |
||
ISManuufacturing I |
A+ |
ISM Manufacturing |
40 PIP |
||
GDP Deflator |
A |
Gross Domestic Product |
50 PIP |
||
Core PPI |
A |
PPI: Producer Price Index |
46 PIP |
||
Core CPI |
A |
CPI: Consumer Price Index |
37 PIP |
||
Trade Balance |
A |
International Trade |
35 PIP |
||
Retail Sales |
B+ |
Retail Sales |
50 PIP |
||
Existing Home Sales |
B+ |
Existing Home Sales |
50 PIP |
||
Consumer Confidence |
B+ |
Conference Board Consumer Confid |
44 PIP |
||
Durable Orders |
B+ |
Core Durable Goods Orders |
25 PIP |
||
PCE |
B+ |
Core PCE Price |
25 PIP |
||
Housing Starts
|
C+ |
Housing Starts |
42 PIP |
||
Initial Claims |
C+ |
Initial Claims |
20 PIP |
||
C+ |
Chicago PMI |
25 PIP |
Chicago PMI |
|||
TIC Report |
C+ |
TIC Report |
25 PIP |
New Home Sales
|
C+ |
New Home Sales |
20 PIP |
Sentiment Consumer |
C+ |
Consumer Sentiment |
20 PIP |
Manufacturing Empire |
C+ |
Empire Manufacturing Index |
20 PIP |
DPA Nonfarm
|
C+ |
ADP Nonfarm Employment Change |
15 PIP * |
Consumer Confidence |
C |
Consumer Confidence |
20 PIP * |
Industrial Production
|
C |
Industrial Production |
20 PIP |
Leading Indicators |
C |
Leading Indicators |
20 PIP |
Factory Orders
|
C |
Factory Orders |
20 PIP |
Consumer Credit |
C |
Consumer Credit |
20 PIP |
Philadelphia Fed |
C |
Philadelphia Fed Index |
20 PIP |
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