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.

Hi, I'm new and I'm still in demo. I want to try the straddle in news, but reading this thread I see mixed opinions. Does anyone here use it successfully? I would love to know.

The program I use has this integrated strategy, but it is very difficult to avoid losses when the news generates unexpected lashes.

I've kept doing straddle this week and the volatility of the comms left me dry twice. It's not as easy as it sounds.

Don't you think you're betting more than trading?

I'm impressed that you keep trying. I lasted a month and left, too much adrenaline for me.

If you want to live with your heart in your throat, straddle is your thing. But if you want consistency, you better find another strategy.

Better work on your tickets with price action in key areas before the news. At least you will have more control.

Sometimes I think I love chaos and I don't want a boring system.

The boring pays the bills, the chaos leaves you with no money.

Has anyone else noticed that many brokers freeze the platform during important data? That kills any straddle strategy.

I prefer to operate after the news, when the market already showed its letters. Less stress and more clarity.

Straddle works only when the broker is reliable, and in forex retail, that's almost a utopia.

Today I tried straddle in the IPC publication and won 15 net pips. It�s not much, but it�s something.

And tomorrow you could lose 50 pips with the same method.

Better use it on demo a few more months before you put real money in.

This method is like playing the lottery: exciting, but the odds aren't in your favor.

My opinion: if you need adrenaline, do bundling. To win trading you need patience, not excitement.

I've seen traders turn straddle into an art, but everyone agrees that military discipline is needed.

I'm trying to improve the timing with a timer that tells me 20 seconds before the news.

The difference of a second can be the difference between success and disaster with straddle. Good luck.

Your method sounds good in theory, but in practice it is impossible to predict direction with such precision.

Have you considered combining it with a deep fundamental analysis? I could give you a better idea of the possible movement.

The spread is your worst enemy in news. If you can�t control it, forget the straddle.

Whoever tells you that straddle is sure to be lying to you, just like that.

Why not try micro-lots so you could practice without risking a lot of capital.

I've reduced the size of the operations, and I notice that so my heart beats a little slower.

Haha, sure, but reducing size also reduces your profits. Is adrenaline worth so little?

The best thing I read here: safe is a dangerous word in forex. Very true.

I use straddle only in events that I know move the market a lot like NFP or FOMC. In minor data, I don't even try.

Straddle taught me to be quick with my finger on the lock button... but not to make money.