There are several methods of market analysis: using graphical constructions (technical analysis), wave analysis, fundamental, etc. A distinctive feature of the fundamental analysis is that the price movement is predicted on the basis of important news, which gives trading certain features.
The main difficulty in trading on news is that the price sometimes reacts instantly, and the trader has no time to place an order or close a profit. In case of simultaneous monitoring of multiple currency pairs, the task is further complicated – when every second counts, it is easy to make mistakes. In such a situation, news Forex expert advisor can help.
The main advantages of trading on news include ease of a trading strategy, as well as the fact that the very trading will take very little time. Despite this, the profits can be substantial, and the benefits of this method of trading can also include the fact that it does not require the trader to have a deep knowledge of economics.
How news Forex expert advisor works
There are several options of work before the important news release:
- hedging – if there is a belief that the news is bound to cause a surge in volatility in the market, you can simply open 2 divergent positions (not forgetting about SL). After the news release, one of the deals is sure to bring you profit, which is guaranteed to be more than a loss;
- you can try to make a deal in one direction before the news release, but this approach to trading is quite risky, because the market’s reaction to the news could be any;
- trading pending orders – this technique is particularly effective when the market is a flat and the pair is trading in a narrow range. Pending orders are set outside this corridor, which allows you to take the subsequent price movement.
Before the release of any important news, you should also protect already open positions (move SL to breakeven or protect the portion of the profits). Any news Forex expert advisor solves these problems, as it keeps track of the time of publication of important data and automatically opens and closes deals. Some advisors can also optimize already open positions, in addition to opening the new ones.
Installing and configuring news expert advisor
To install the EA, you need to move the files with the extension .ex4 .mq4 to the Experts folder and restart the trading terminal. Settings of the advisor strongly depend on the method of trading. As a rule, they include a trailing stop, the number of simultaneously used pairs, and time after which the pending orders are removed. Depending on the modification, news advisors can consider indicators readings as well.
For example, Catcher Candles news expert advisor, aside from simply setting pending orders in the hope of catching the impulse of the price movement, also allows you to make deals after the dispersion of the first effect of the news. This EA includes such parameters as:
- EXP – the time after which the pending orders are removed. Specified in minutes. It is desirable that this parameter does not exceed 2-4 minutes;
- work – this parameter is responsible for setting pending orders. If the value is 1, the orders will be set at a specified time, if 0 – after launching the advisor;
- tral – allows you to move SL following the price. A value of 0 disables this feature;
- trailing stop – used to protect profits, recommended to be installed at a distance of 5-10 pips + the value of the spread.
Besides, any news Forex expert advisor contains settings of TP and SL levels and independently analyzes the importance of emerging news. When trading with it, you must remember that the effect of news usually reveals within 2-3 minutes, so it is not recommended to wait longer – there is a possibility of a false opening.
Peculiarities of trading with news expert advisors
Market calendar is full of important events, almost every half an hour the news are out regarding the currencies of various countries. But not all of these factors lead to visible fluctuations in the price chart. The reasons are as follows:
- all news can be divided into categories that have strong, medium and weak impact on the market. Particular attention should be paid to the results of the meetings of the Monetary Policy Committee of States, data on unemployment, GDP, central bankers speeches, and so on.
- the price is most strongly affected by the news that has a clear numerical expression. Speeches of the officials most often repeat streamline formulations and rarely carry something new;
- the effect of the publication of news may occur only if its actual value is very different from the forecast.
If the advisor can’t determine the most important news on its own, the trader will have to do it manually by running the news Forex expert advisor directly before the news release. Searching the news won’t be difficult, the site of any DC contains an economic calendar, which in addition to the news schedule also indicates the degree of importance.
Is it possible to make money with news expert advisor?
Earnings with the news was quite popular in the past – even in the manual mode, you could double the deposit within a couple of minutes. Since then, this method of trading has become much more problematic, as the brokers actively prevent “easy moneymaking”. The marketmakers also periodically emerge in the work – it often can be seen how the price makes a breakthrough in one direction and then in the other, collecting the SL.
DC may secure itself and introduce increased spread or deny setting pending orders at a distance closer than 20-30 pips from the current price at the moment of the critical news release. There are many other ways to make trading on news impossible, also including not quite legitimate ways like charts redraw.
News Forex expert advisor allows to bypass part of the restrictions imposed by brokers. Besides, using a trading robot gives you the opportunity to trade on several pairs. It is problematic to do this in manual trading. But you should carefully trade on news, because the reaction of the market can be unpredictable.Social button for Joomla