Recently started using the "fork" strategy. It's a strategy that is used when big fundamental news come out. It is called "Fork" as it looks like a fork when your orders are placed on both sides of the current price
It is supposed to catch the big move the first 2 minutes after the news is released. It is traded on the 1M time frame.
Lets say the news comes out at 12:00. At 11:55 you should be ready to place one buy stop and one sell stop order. You should take the candle that starts at 11:58 and use its opening price as your base price for your entry.
Criteria:
Buy stop - Add 12 pips + the spread to the base price
Sell stop - Base price minus 12 pips
Stop Loss: 18-20 pips from your buy/sell stop order prices
Profit target:
Do not set a profit target. Now, at 12:00 the news is released and the market starts to move up or down. Within 30 seconds the market is clearly in one direction, and thus you cancel your sell stop if the market is up and cancel your buy stop if the market is going down.
Now, at 12:01 if your profit is 20+ you should close your trade. If it is less than 20 pips you wait for 1 more minute and close your trade at 12:02. What I noticed is NEVER LEAVE THE TRADE OPEN AFTER 12:02. The strategy focuses on the move in the first 2 minutes after the news is released.
Make sure you are fast when placing your orders as sometimes the market starts to move at 11:59 and by that time you orders should be placed as you may miss the move.
My experience shows that it is better use an excel sheet in order to copy and paste your entry and stop loss into MT4 in order to do it a few seconds.
Anyone tested this strategy? Any feedback?
It is supposed to catch the big move the first 2 minutes after the news is released. It is traded on the 1M time frame.
Lets say the news comes out at 12:00. At 11:55 you should be ready to place one buy stop and one sell stop order. You should take the candle that starts at 11:58 and use its opening price as your base price for your entry.
Criteria:
Buy stop - Add 12 pips + the spread to the base price
Sell stop - Base price minus 12 pips
Stop Loss: 18-20 pips from your buy/sell stop order prices
Profit target:
Do not set a profit target. Now, at 12:00 the news is released and the market starts to move up or down. Within 30 seconds the market is clearly in one direction, and thus you cancel your sell stop if the market is up and cancel your buy stop if the market is going down.
Now, at 12:01 if your profit is 20+ you should close your trade. If it is less than 20 pips you wait for 1 more minute and close your trade at 12:02. What I noticed is NEVER LEAVE THE TRADE OPEN AFTER 12:02. The strategy focuses on the move in the first 2 minutes after the news is released.
Make sure you are fast when placing your orders as sometimes the market starts to move at 11:59 and by that time you orders should be placed as you may miss the move.
My experience shows that it is better use an excel sheet in order to copy and paste your entry and stop loss into MT4 in order to do it a few seconds.
Anyone tested this strategy? Any feedback?
