Im brand new to Expert Advisors and auto traders. Is it possible to use MQL5 files in MQL4? For example could I just rename "expertnewswatcher.mq5" to "expertnewswatcher.mq4"? Thanks for any tips!
Forum on trading, automated trading systems and testing trading strategies
newdigital, 2014.06.06 09:25
3 Steps to Trade Major News Events (based on dailyfx article)
Talking Points:
- News releases can be stressful on traders
- Develop a plan before the event arrives
Perhaps you are already in a good position with a good entry and you are afraid the news release may take a bite out of your good entry.
Perhaps you want to enter into a new position as prices are near a technically sound entry point, but you are uncertain if the technical picture will hold up through the volatile release. Therefore, you agonize over the decision of whether to enter now or after the news event.
Maybe, you like to be in the action and initiating new positions during the release. The fast paced volatility during the news release still gets makes your palms sweat as you place trades.
As you can see, news events stress traders in a variety of ways.
Today, we are going to cover three steps to trade news events.
Step 1 - Have a Strategy
It sounds simple, yet the emotion of the release can easily draw us off
course. We see prices moving quickly in a straight line and are afraid
to miss out or afraid to lose the gains we have been sitting on.
Therefore, we make an emotional decision and act.
Having a strategy doesn’t have to be complicated. Remember, staying out
of the market during news and doing nothing is a strategy.
A strategy for the trader with a floating profit entering the news event
could be as simple as “I am going to close off half my position and
move my stop loss to better than break even.”
For the trader wanting to initiate a new position that is technically
based, they may decide to wait until at least 15 minutes after the
release, then decide if the set-up is still valid.
The active news trader may realize they need a plan of buy and sell rules because they trade based on what ‘feels good.’
Step 2 - Use Conservative Leverage
If you are in the market when the news is released, make sure you are
implementing conservative amounts of leverage. We don’t know where the
prices may go and during releases, prices tend to move fast. Therefore,
de-emphasize the influence of each trade on your account equity by using
low amounts of leverage.
Our Traits of Successful Traders research found that traders who implement less than ten times effective leverage tend to be more profitable on average.
3 - Don’t Deviate from the Strategy
If you have taken the time to think about a strategy from step number
one and if you have realized the importance of being conservatively
levered, then you are 90% of the way there! However, this last 10% can
arguably be the most difficult. Whatever your plan is, stick to it!
If I put together a plan to lose 20 pounds of body weight that includes
eating healthier and exercising, but I continue to eat high fat and
sugar foods with limited exercise, then I am only setting myself up for
frustration.
You don’t have to be stressed or frustrated through fundamental news releases.
That's nice to give us the necessary tools to help us build our own news traders. Thanks
Dear Jordi,
Your article is exelent,but while attached the EA I saw like that (in file attachment in below).
What is that happened? What wrong is?
Thank you for your innovation sharing.
![error error](https://c.mql5.com/3/436/error__1.jpg)
![MQL5 - Language of trade strategies built-in the MetaTrader 5 client terminal](https://c.mql5.com/i/registerlandings/logo-2.png)
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New article Building an Automatic News Trader has been published:
This is the continuation of Another MQL5 OOP class article which showed you how to build a simple OO EA from scratch and gave you some tips on object-oriented programming. Today I am showing you the technical basics needed to develop an EA able to trade the news. My goal is to keep on giving you ideas about OOP and also cover a new topic in this series of articles, working with the file system.
As Investopedia states, a news trader is "a trader or investor who makes trading or investing decisions based on news announcements". Indeed, economic reports such as a country's GDP, consumer confidence indexes and employment data of countries, amongst others, often produce significant movements in the currency markets. Have you ever attended a U.S. Non-Farm Payrolls release? If so, you already know that these reports may determine currencies' recent future and act as catalysts for trends reversals.
Author: Jordi Bassaganas