News Trading - Straddle Strategy

Dear friends of the forum, I have been studying forex for years and I must say that I have come to the conclusion that it is a random business. The technical indicators, forget them. The price breaks a Bollinger Band 50% of the time and recedes the other 50%. TDI, ADX, RSI... the same thing. When the RSI breaks 80, the price goes up half of the time and recedes the other half. Combining them also does not solve anything. Price Action... mmm, I am not convinced. What moves the forex market 90% of the time is unknown to most of us, the small traders. But what I do know is that the economic news of medium/high impact generate a clear effect. So, why not play with that instead of guessing and drawing lines in the graphics? I started just a week ago (yes, a week does not mean anything.

Thank you for the contribution. Very interesting. I agree with you that the straddle in news is exciting, but I also think it is more risky than it seems.

You discovered hot water, buddy. It�s nothing new and it�s not profitable in the long term, because when volatility explodes, spreads and slips are a headache. I�m sorry.

With straddle, sooner or later you break the bill. It starts out great, but when things go wrong, it becomes disastrous. Spread and slippage kill. I lived it in my own flesh with the NFP, and it's a matter of seconds for you to lose all control.

Thanks for the answers, guys. I�m afraid to have to agree with you. But in the meantime I am having fun and profitable. It may not last, but I�m willing to play. One question: I�ve noticed that different sources don�t match the level of impact of the news (low, medium, high

When I started with straddle I thought this was a piece of cake, why don't everyone make money?. Demo, I doubled the account at nothing, but in real history was another. Spreads open like crazy and the price gives you a whip. What they say about data in milliseconds is true: pros pay for privileged access and have EAs that run faster than us. Most profitable news traders don't use straddle.

Here's a document that could help you better understand the impact of certain news.

The best thing is to look at the graphics of previous releases of the same news. Watch ticks graphics to see the real slippage and how the spread behaved. That's how you'll better understand what to expect.

There is a very good thread in the forum on news trading. In the end, as retail traders we do not move the price; the important thing is not to blame the indicators if the problem is in yourself.

What an interesting debate, although it was opened years ago. I am new to trading with automatic programs, check my thread for more details.