Scalping forex release announcements

[tsfx]

I suspect you are trading spot forex / CFD.
If you are doing day trading, the chances of making $$$$ is around zero due to
horrific bid-offer spread.


I switched to currency futures about 2 decades ago.
You can trade the currency futures (EUR GBP AUD JPY ...) from say CME Exchange.

Are you saying that trading fx futures get you better fills during news events than spot fx?

 

[DepthTrade]

Hello,

After a few months of experimenting with trading forex news, I'm still unable to find a decent profitable strategy. I'm wondering if such a strategy exists? (Trading during forex news releases)

To summarize, I found some strategies wonderfully worked on demo however they failed when live trading due to slippage issues.

I found that for the same broker, entry slippage (e.g. Market pending order) equals exit slippage (e.g. stop loss) more or less and that both slippages are as bad.

The brokers I used would fill me after at least 75% of the move occurred. This means that I would get a much smaller profit or my strategy would fail because price will reverse the moment I get filled. This also means that traders that caused at least 75% of the price movement got filled faster than me for certain reasons (Probably related to the differences in brokers).

So I was wondering if someone uses such a strategy in an efficient way due to broker slippage improvements?
I wouldn't mind trying many brokers if such a strategy works. I'd like to know if there is such a broker that can make the strategy succeed? Does anyone have some hints? Otherwise, I would start experimenting with a different strategy

Thank you for your time

First thing, I would not assume just because price has exploded and others have entered, that they are profitable. If you want to follow up on a theory about trading news, do so, but do it with zero bias.
There is a huge change of hands going on at these moments, orders are coming in and orders are being cancelled. It's super sketchy trying to trade through this and that's not even covering whether entities can see order flow and are sharing it. You also have news/ data adjustments that always change. I would be surprised if even "professionals" with order book data can trade these situations profitably.
Another thing, most of this news is subjective. Even if you have a model for the numerical discrepancy between the Forecast and the Actual number, you still have the other variables. You end up with paralysis from too many variables.

 

[shine]

Constant trading on news is a game of roulette. Here any broker can have slippages during periods of sharp and high volatility in the market. And the price can jump anywhere and even knock out stop losses in different directions before going in one direction. Therefore, for me, the market is more profitable and predictable when it is calm (that's why I don't trade on news) and I always know that my broker FXOpen will never have problems when trading on such a market.