Anyone trade purely based on news only ?

[Baruch]

tbh .. I've never tried any of the other news providers like market news, or dj (i hear they're pretty slow) but consiering the amount of money that can be made from trading figures, bloomberg and reuters at around 1k a month is next to nothing. I don't care to say what my pnl was 10 seconds after the figure today but it was more thna enough to get bloomberg for the 2yr contract they require. But yes, hayek is 100% spot on ... don't even bother trying this unless you got a decent (read honest) broker. If any of you want to attempt going down this difficult but highly rewarding path, I recomment you go with a dealer like hotspot. ****e interface, but they won't screw you

I use Saxo Bank, and I never had any problems. But I never use limit orders. Saxo provide you with 3 streaming newswires free: AFX, MNI and Dow Jones. I don't know, but I suppose Dow Jones is not more slow than Bloomberg and Reuters.

 

[Baruch]

I don't think any retail dealer will give you the 2 pips without paying extra for true interbank access. Dukascopy will provide you with that but they charge commsion bring it up to 2.8 pips.

OK, but which broker do you use?

 

[sccz97]

It did gap - 1.8140 just b4 the release - price within about 30 seconds was 1.8115 offered and then kept going all day until a low of 1.7996.

Agree re news feeds. Used to have DJ but it was too slow. Have bloomberg, reuters 3000 extra and market news. Market news is the cheapest of the three but it can get great exlusives from Euro central bankers that arent picked up by Reuters or Bloomberg for a few minutes.

Ah, excellent, a market news user. What's the speed difference between that and bloomberg?
From experience, if I had to pick just one, it would be bloomberg everytime, but reuters does provde faster news for the late night figures.

For those ppl who hav'e used bloomber gand can't see the point ... just try it. Get the 1 month trial or smthing, great piece of software

if CBI gapped...then it's on my list!

 

[sccz97]

I use Saxo Bank, and I never had any problems. But I never use limit orders. Saxo provide you with 3 streaming newswires free: AFX, MNI and Dow Jones. I don't know, but I suppose Dow Jones is not more slow than Bloomberg and Reuters.

whether it's slower of faster than bloomberg or retuesr isn't the point. Ask yourself one question:
does the market gap before or after you see the headline on dj?

 

[Baruch]

I wasn't long before the figure was released, just long before the market moved. THe tight stop is there because I know which direction the market will gap and it's just there as a failsafe in case the extraordinary happens and the market goes the other way. I used to put on x trades each with differnet limits so I could make sure I banked enough just in case the market reversed, but I think I can read the post-figure market well enough now to know when to close out, hold or hedge

How can you know which direction the market will gap? So you made your entry after the news, but before the move? Well done.

 

[sccz97]

OK, but which broker do you use?

hotspot, in the middle of negotiating an api deal with dukascopy but cos they know I got the backing of a hedge fund, they're being unreasonable. Im not willing to pay over the odds for smthing regardless of whether the company pays for it or not. I may crumble soon though

For the amount I'm willing to pay, they want me to push through $1b a month in volume which is twice what I currently push through ....

 

[JP1966]

I use Bloomberg and Reuters for figure, in the main. I think MNI probably gets them at the same time but they do it in the scrolling news bit whereas the other 2 drop it in the econ releases box so my head does not have to bob up and down looking for the figure! This saves vital time as I am sure you are aware!

Sometimes MNI does get a figure before the other 2 from 'sources' but generally I use the other 2!

 

[Baruch]

whether it's slower of faster than bloomberg or retuesr isn't the point. Ask yourself one question:
does the market gap before or after you see the headline on dj?

Today it was after, I think. But it went very quickly, so I am not sure. But maybe the news are a bit slower went it goes from Dow Jones to Saxo to me?

 

[JP1966]

How can you know which direction the market will gap? So you made your entry after the news, but before the move? Well done.

You can't and won't get it right every time but you will 9/10. Ask yourself if someone told you the number 30 minutes before the release would you make money. I would hope that you would. All you then need to do is work out all the possible reactions before a figure is released and then trade the number as soon as it is released.

 

[sccz97]

I use Bloomberg and Reuters for figure, in the main. I think MNI probably gets them at the same time but they do it in the scrolling news bit whereas the other 2 drop it in the econ releases box so my head does not have to bob up and down looking for the figure! This saves vital time as I am sure you are aware!

Sometimes MNI does get a figure before the other 2 from 'sources' but generally I use the other 2!

heh ...that's where my IT background has helped me out... I don't even bother trading ... my application does it for me.The wonders of bloomberg API. How do you get to the econ screen in reuters?

 

[JP1966]

hotspot, in the middle of negotiating an api deal with dukascopy but cos they know I got the backing of a hedge fund, they're being unreasonable. Im not willing to pay over the odds for smthing regardless of whether the company pays for it or not. I may crumble soon though

For the amount I'm willing to pay, they want me to push through $1b a month in volume which is twice what I currently push through ....

I assume you use Hotspot instituional. In my experience I think they are very good aprt from econ data when the liquidity seems to dry up and the spread widens. Maybe I will have to look up them again.

What size do Dukacopy allow in a single hit, is it fully automated and how wide do their spreads go over figures? Have not come across them before.

 

[JP1966]

heh ...that's where my IT background has helped me out... I don't even bother trading ... my application does it for me.The wonders of bloomberg API. How do you get to the econ screen in reuters?

A seperate window : G7 diary.

 

[sccz97]

You can't and won't get it right every time but you will 9/10. Ask yourself if someone told you the number 30 minutes before the release would you make money. I would hope that you would. All you then need to do is work out all the possible reactions before a figure is released and then trade the number as soon as it is released.

exactly right .. but then it depends on how much risk you're willing to take. You can trade more often ... but run the risk of a revrsal against you. Prefect ex was mar 05 nfp ... 262 vs 225, went short eur ... went my way .. then suddenly reversed. first time I've been slipped

 

[Anonymous]

sccz97,

make a couple of thousands quid

What's the capital may I ask?

 

[Baruch]

You can't and won't get it right every time but you will 9/10. Ask yourself if someone told you the number 30 minutes before the release would you make money. I would hope that you would. All you then need to do is work out all the possible reactions before a figure is released and then trade the number as soon as it is released.

Yes, and thank you very much for all the information we get here in this thread from you and sccz97. By the way: A trader by the name Jimmy Young tried to make a system out of news trading. I suppose he has stopped, and now he's running as news trader coach: www.eurusdtrader.com. He had some good Q and As on this subject on www.forexstreet.com

 

[sccz97]

I assume you use Hotspot instituional. In my experience I think they are very good aprt from econ data when the liquidity seems to dry up and the spread widens.

What size do Dukacopy allow in a single hit, is it fully automated and how wide do their spreads go over figures? Have not come across them before.

I still need to research more about dukascopy so I don twanna say anything mirepresentative. Liquidity is always gonna be an issue around figures, noone wants to get raped especialyl the banks. But there are ways aroudn this issue that I'm still in the process of testing. Wide srpeads are really no a concern of mine if I know the market is goign to gap 30 pips so it's all relative

 

[JP1966]

You won't make money out of this unless you invest in good news servies though. Use your price provider for just that. You must invest in good news sources. It is also a waste of time unless you have the fastest possible connection.

 

[sccz97]

sccz97,



What's the capital may I ask?

ignoring leverage, depending on the figure and my expectations of what the move will be I push thorugh between $10-50M notional

 

[Baruch]

ignoring leverage, depending on the figure and my expectations of what the move will be I push thorugh between $10-50M notional

Wow! That's what I call size. Are you George Soros?

 

[JP1966]

ignoring leverage, depending on the figure and my expectations of what the move will be I push thorugh between $10-50M notional

How do you only do half a yard a month then?!