Good advice but, If this is a hypothetical scenario you mention, I think it is very hypothetical because 50+ pips can happen over night during the 12 hour period, meaning getting filed before the news, in witch case you could be on the wrong side. So the alternative to this strategy would be putting your order far off markets actual price. This could cause you to get filled on the top half of the move, or even the top with slippage. This would increase risk because half the time they whip right back the other way just as fast
For now I will concentrate on what I already do best, maybe another opportunity of this method will pop up. I do agree on being prepared, watching the market action, knowing when the reports come out weeks ahead of time.
For now I will concentrate on what I already do best, maybe another opportunity of this method will pop up. I do agree on being prepared, watching the market action, knowing when the reports come out weeks ahead of time.
You already set your entry points so you accordingly already set your stop loss points. Worse case, you get filled early and stopped out and you sit out the report. It's been my experience though that the 12 hours before the major US reports, price tends to vector into very narrow ranges until release most of the time. You might get some push one way or the other but it doesn't seem to amount to much and is very short lived. This is just my experience of the last two years and I am sure others may have seen all sorts of variations. The few times I have tried to play the reports like this, I have come out ok (either with a pre-determinded loss or some profit). This is not to say it works all the time or will ever work again, but at least if you have your trade worked out early, and have thought out the possible scenarios, you can react accordingly with a minimum of emotion.