1. Abstract.

I hope this post helps to understand one of the tricky situation at the moment of trade on news because is very risky and to give my view
on the new order wiget. This seems to be very interesting and useful but I think it could be best with some improvements.

2. Development.

2.1 Explanation trade on events.

Let's say that before a release event you decide to trade.
In this particular example I will re-create a setup based on a bear flag, so the entry could be placed below of the few candles low.
The stop loos above the last higher high, that means about 20 pips risk with a limit to the nearest lower low.

Till here seems to be a nice setup, also if you check the exponential moving average of 144, means strong downtrend.
Also, after check this setup you can say that the entry could be adjusted at the previous candle low as entry and the high as stop.
That means around 10 or less pips risk to trail the stops each candle.

But, the reality here is other.....
After the data comes on place, the price experiment a jump or explosive movement down side.
And with this filling the stops orders, first the order was filled down about 25 pips and that means your stop loss as well.
As a result of this move down, the price reacts to the upside in couple of minutes leaving not time to react.

After trigger the stop the price comes down in direction of the break about 80 pips.
As you can see, this kind of situations are common in the news events, that is because professional
traders and people who make forecasts always say that stay out of the market in this minutes is best.

In may case I did trade on news and I found few situations like this.
Maybe if you trade this evens the best could be lower the risk or even wait to make technical analysis before the news.

2.2 Explanation order wiget.

A visual effect to be concentrate on scalping maybe is useful at the moment to use it.
If you drag a buy order, you need to send it to see it on the chart. The same in the case of sell order.

If you press the F9 of your controls, a new window appears on your chart and maybe this is best because you have time
to setup options like lots, stops, limits and so on.
Also you can have up to 5 windows, and the best is you don need to send the order to manipulate on the chart.
The bad is when you close the windows the lines of the price orders doesn't remove it.!!!!

3. Conclusion.

  • If you trade on news events, keep low risk.
  • Maybe es best to wait the first five minutes and then place the stop orders to avoid any price jump.
  • I found interesting the new order wiget but I do not work with it at the moment. Maybe a solution of drag and drop easily I will use it.
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