JTrader
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Hi
lets say you trade GBPUSD off 30 minute (which are medium term intraday) charts, and your system usually gets a maximum of 6 entry signals from 0700 - 1600 UK time.
You also use a 20 pip maximum stop loss (which is also a medium term stop-loss perhaps)
When you get one of your systems relatively infrequent entry signals, close before a news announcement, knowing that if you enter, the news release could cause a gap of more than your 20 pip stop loss against you.
How do you manage this risk?
Do you enter the trade before the news and take your chances.
Do you wait for the release and if price then moves in the direction of the original signal, you then jump on-board in that direction, all be it entering at a less favourable price.
Many thanks.
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lets say you trade GBPUSD off 30 minute (which are medium term intraday) charts, and your system usually gets a maximum of 6 entry signals from 0700 - 1600 UK time.
You also use a 20 pip maximum stop loss (which is also a medium term stop-loss perhaps)
When you get one of your systems relatively infrequent entry signals, close before a news announcement, knowing that if you enter, the news release could cause a gap of more than your 20 pip stop loss against you.
How do you manage this risk?
Do you enter the trade before the news and take your chances.
Do you wait for the release and if price then moves in the direction of the original signal, you then jump on-board in that direction, all be it entering at a less favourable price.
Many thanks.
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