Saturday, September 3, 2011

Trading Plan: Best strategy to trade news: Ignoring the volatility






Best strategy to trade volatile news events is not to open a new trade :-)
simply hold the position that is already on:

FDAX got stopped out prior to the news,
all other markets keep running.

Once the daily targets are reached the stop is trailed to that level, so the bund and USDCHF got stopped out at that level only crude oil continued short.

If there are support and resistance levels before the news spike it valid to trade bounces off these levels after the volatility is lower.


No comments:

Post a Comment