While a central bank such as the Federal Reserve would never make a final interest rate decision on GDP alone, it does still serve as evidence used to base decisions around. The same can be said for a GDP number in decline, signaling an economic slow-down that could require rates to be cut.

Sometimes the unpredictable nature of the society we live in means things happen, things that move markets. This section encompasses all other high impact Forex news releases that you may or may not find on your economic calendar. Important Examples: Political speeches, central banker speeches, terrorist attacks How often: Sporadic.

An example may be the US president stepping up to the microphone at a campaign rally for an off-the-cuff announcement of an economic stimulus package. This has the potential to send the US Dollar soaring as fiscal policy affects demand. Another more sober example, is a terrorist attack. If a bomb goes off in a busy underground station, panic soon spreads to markets as traders price in the probability of economic slowdowns and the uncertainty of war. Did you notice that the most important Forex news releases throughout our list, are all from the US?

In addition, our article with 5 tips on how to trade Forex news can help you to get morу profit. While global Forex markets are interconnected, the US economy is still the largest economy and as a result, has the most important economic events.

December 28, Trading High Impact Forex News — Don't Get Caught Out Trading Tips 2. Related Articles. This ebook explains step by step how to create your own carry trading strategy.

It explains the basics to advanced concepts such as hedging and arbitrage. There are several grid configurations that can work in this scenario. Single-up grid: This is a trend follower. Trades are opened in the direction of the trend.

This configuration works well when an event results in a single, directional movement either upwards or downwards. In this setup, the opposing grid levels act as stop losses. So having all your grid levels triggered would effectively cause you to be stopped out. The grid is hedged, and has a fixed downside limit, but an unlimited upside. Single-down grid: This configuration trades against the trend. That is, it buys in a falling market, and sells in a rising market.

This setup can work well when volatility is high and whipsaw price action is expected. This grid has a limited upside, but an unlimited downside risk. The single up system reaches its maximum loss when all trades within the grid execute. When all trades in the single down grid execute, the system reaches its maximum profit potential. See Table 1. Basically, the rule for trading news events is this: If high volatility is expected, use the single down grid. Otherwise use the single up grid.

The single down grid is a clear winner in highly volatile situations. This is because it reaches its maximum profit potential when the price crosses the grid at all levels and all trades are executed see Table 1 above.

Dual grid: One other option is to run the two grids simultaneously to create a dual system. That means managing the overall stops and take profits on both sides. This can be useful under certain conditions, but it needs more complex trade management. Wide stop losses can be put in for good measure. With the single up grid, closing trades separately is risky because it can leave you unhedged.

The most efficient way to work is to have an overall stop loss and take profit target for the grid. At either of those points, all trades are closed and the profit or loss is realized.

This makes the trade management much simpler. It just means watching two numbers. The average entry rates on your buy and sell side. The average entry rate is updated iteratively each time a level on the grid is reached and a new trade is executed:. This simple trade management means you have the option to run either or both grids by hand. The single up grid, which is hedged by design, has a fixed downside risk.

This is set by the number of grid levels used, and the interval between each of those levels. Where L is the number of grid levels on both sides, and S is the gap in pips between each level. So in the example above, a single up grid with 3 levels above and below the start point, and a gap of 10 pips, has a maximum potential loss of:.

How do you decide when to start the grid? Creating an algorithmic indicator for this arrangement is fairly easy.

This is because important data releases are typically preceded by the following conditions:. Depending on the significance of the event, these conditions can begin minutes, hours or even days before.

There are standard indicators that can help you pick up this sort of contracting volatility channel. To open the news filter settings, you must click on the clock button. News filter Here you can specify the minutes before and after an event or news in which the bot will momentarily pause the execution of trades.

Time filters You can add custom events, as well as edit and remove them. Add: you will be able to select the day, the duration of the event given in 24 hrs format and write a brief description of the event. Edit: to edit an event first select it, then click on edit and make the changes you want.

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High impact Forex news moves markets! The most important high impact Forex news release are central bank meetings and interest rate decisions. Important Meetings: FOMC, ECB, BoE RBA, BoJ How often: Monthly. Usually at monthly intervals, central banks around the world meet to set interest rates and discuss policy plans going forward.

Whether they raise rates, leave rates unchanged or lower rates all depends on the performance of their respective economy and how effective any decision would actually be. What a central bank, such as the Federal Reserve at their monthly FOMC meeting, chooses to do with monetary policy, has a high impact on Forex markets.

In this example, raising rates will likely be bullish for the USD, while a rate cut will likely be bearish. The most important part of a central bank meeting on interest rate policy, is the accompanying statement that goes alongside any decision made. Unemployment data is released in a number of forms across different economies, but the highest impact release in undoubtedly the US Non-Farm Payrolls.

Non-Farm Payrolls report the change in the number of employed people during the previous month excluding the farming industry, as the name suggests. Most important release: US Non-Farm Payrolls How often: Monthly. The US NFP number is released monthly by the Bureau of Labor Statistics, usually on the first Friday of the month. This is because unemployment data is important to the Federal Reserve when it comes to setting interest rate policy.

If unemployment is high, then the Fed is more likely to cut rates in order to stimulate hiring. While the Forex major currency pairs experience the most volatility surrounding an NFP release, any of the most liquid currency pairs will experience similarly wild price action. This is because global markets are so interconnected that when the US economy slows down, the rest of the world is often dragged down with it.

The consumer price index CPI is the change in the price of a basket of goods and services. Put in simple terms, CPI measures inflation. This is one of the highest impact news releases because as we said above, the main mandate for central bank policy is to control inflation.

Most important release: US Consumer Price Index How often: Monthly. The basket contains a fixed set of products and services based on average consumer habits that the Bureau of Labor Statistics has collected.

The highest impact CPI news release comes out monthly, but due to its importance, the data is also compiled into quarterly and yearly readings. As central banks such as the Fed use the CPI number to track inflation, there is a direct relationship between CPI and interest rate policy. Most important release: US Gross Domestic Product How often: Quarterly.

The US gross domestic product number is released by the Bureau of Economic Analysis, on a quarterly basis. As GDP is released at wide intervals, the bureau also releases preliminary figures at the end of each month. While a central bank such as the Federal Reserve would never make a final interest rate decision on GDP alone, it does still serve as evidence used to base decisions around. The same can be said for a GDP number in decline, signaling an economic slow-down that could require rates to be cut.

Sometimes the unpredictable nature of the society we live in means things happen, things that move markets. This section encompasses all other high impact Forex news releases that you may or may not find on your economic calendar.

Important Examples: Political speeches, central banker speeches, terrorist attacks How often: Sporadic. An example may be the US president stepping up to the microphone at a campaign rally for an off-the-cuff announcement of an economic stimulus package. This has the potential to send the US Dollar soaring as fiscal policy affects demand. Another more sober example, is a terrorist attack. If a bomb goes off in a busy underground station, panic soon spreads to markets as traders price in the probability of economic slowdowns and the uncertainty of war.

Did you notice that the most important Forex news releases throughout our list, are all from the US? In addition, our article with 5 tips on how to trade Forex news can help you to get morу profit. While global Forex markets are interconnected, the US economy is still the largest economy and as a result, has the most important economic events.

December 28, Trading High Impact Forex News — Don't Get Caught Out Trading Tips 2. Related Articles. What's Next? Learn basic Sentiment Strategy Setups.

Instead of trying to anticipate the market reaction, a more reliable approach for traders is to use a strategy which profits from volatility — basically movement of price in either direction. Was this page helpful? If you are a forex trader that believes that moves in currencies reflect the fundamentals, it's important to keep your finger on the pulse of forex news. In actual fact this was a non-event, since everything announced was in line with market expectations. Although the financial markets are unpredictable, when they are not affected by such news and economic events, behavior trends can be detected and a trading strategy can be applied to maximize the results and reduce losses. The single down grid is a clear winner in highly volatile situations. The spreadsheet enables testing against either real or simulated data.

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