Hi Folks.
Some of you have been around long enough you’ve heard me tell a few stories about trading in the Wild West days of Forex (in the mid to late 2000’s).
One of the tricks we used to use was set up pending Buy and Sell trades spaced about 20 pips away from current price (it was called a Straddle), and we’d set those trades up with a minute or so to go before a major economic number was released.
At the time I was trading with Forex.com and they had a built-in feature called OCO: One Cancels the Other, which meant if the Buy trade executed, the Sell trade was immediately canceled, and vice versa.
So the number would come out and price would instantly spike 10, 20, 50 or more pips, and if I got into a trade, I could either close it out as soon as price took a breather (which sometimes meant 10 seconds after got in the trade) and sometimes a move had some real power behind it and I would ride it out for minutes or hours and grab as many pips as I could.
Eventually I moved on from Forex.com for a lot of reasons, and lost the built-in OCO option. At about the same time, price began whipsawing wildly and without the OCO I found myself in a bunch of trades going both ways (back when US based brokers allowed hedging).
So it got too expensive and the pips weren’t worth the stress and the risk.
Most people began to feel that same way and news trading sort of just died. Few bothered with it, preferring instead to wait for those few moments after a number came out for price to establish a direction, and then they’d place a trade.
But lately, something interesting has been happening with certain brokers.
Some of them (like Envi and Coinexx) are offering accounts where they are filling your pending trades at the price point you requested, regardless of the timing around a news event.
I didn’t believe it when I first heard it, but as I already had an Envi account I decided to give some currency trades a shot during news time.
Turns out the rumors are true. I used AutoScaler to place a few trades and when the numbers came out, price just took off in one direction and didn’t look back, at least not for 15-20 pips, anyway.
I checked my records and found I was getting filled exactly where AutoScaler placed the pending trades.
The only problem I had using AutoScaler was I had to guess before the news came out which direction price would move. When I was right, I made pips. When I was wrong, I’d end up stopping out on the one or two trades that opened after I took my manual trade.
I knew I couldn’t keep using AutoScaler as it was built, so I got my guy to build a brand new AutoScaler which only works with Pending Orders, and because we built in an OCO feature, you can now use it to straddle current price right before news time and catch some crazy price runs with as many as 10 extra trades scaled in just a pip or two apart.
This means you can turn a 20 or 25 pip price spike into 150-200 pips, in a matter of seconds.
With no worries that a whipsaw will execute the pending trades going the other way.
And with the Step Stop built in, you have the ability to keep the Stop Loss moving close to current price so a quick spike in one direction will drag the Stop close enough that a price reversal means a close in profits.
This opens up News trading as a viable trading option once again.
If you want to see a couple of these trades in real time, and read more about AutoScaler-P (and have the chance to pick it up at a HUGE discount) jump over to https://simplicators.com/autoscalerp and read all about it.
Just know that the discount only runs to the end of this week and on December 31st this page comes down and the new AutoScaler-P website will launch in anticipation of the first week of January and some great Red Folder News trading opportunities, including Non-Farm Payroll.
So head over to https://simplicators.com/autoscalerp and grab your new trading best friend and save a ton of cash in the process.
Jeff