Are "momentum" strategies possible? That is, catching a continuation of a strong move ... - page 3

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Daniil Stolnikov:
read the whole post. no answer.
What kind of answer do you want?
 
forexman77:
On the first page I wrote my assumptions about spread widening on the news.
Front page of which thread?
 
Alexey Busygin:
What kind of answer is needed?
why is the spread widening on the news, who exactly is widening it and for what purpose?
 
Daniil Stolnikov:
why does the spread widen on the news, who exactly is widening it and why?

In my opinion it's as simple as that -

The glass is standing still - and suddenly all start to beat to one side - so there are no Ask's, but Bids are still there...

Then there are many different subtleties, some MM dealers smooth out the spread - that is, they narrow the spread for a long time - not higher than a certain speed,

Some play on the contrary, if the spread widens a little, it quickly tapers.

 
Daniil Stolnikov:
Why does the spread widen on the news, who exactly widens it and why?
The rule is to prevent sharp fluctuations and speculative scams, not everyone widens the spread on the news, I personally have only seen it widen a couple of times and that was in 2009. The spread is widened by a broker, due to a misunderstanding.
 
Daniil Stolnikov:
I read the entire post.

"I think it's obvious that at the moment of news release the spread widens a lot, the price goes a significant distance in seconds to the order accumulation area, where they open or close their positions".

I would also add that in reality the spread is larger because of slippages (the price can move 100 points within a few seconds, a stop will not have time to trigger, there will be requotes).

Spread widening and slippage allow for small movements of price to the required coordinate.

The purpose of triggering of stop orders, plus the impulsors start to connect.

 

Tried the ANTI-pulse variant, i.e. open AGAINST the movement.

On the same story (+ spread of pips) gives 1103 pips, with parameters N=2, X=10 pips, TP=SL=18 pips,

these are the best parameters when fixing N=2 and this history.

It can be seen that increasing TP and X will decrease the results.

TP SL Time in pose

245.000000; 191.000000; 83.777518;

Other options:

PL N X TP SL Number of TP SL Time in position
791.85 2 0.0014 15 -15 148 104 42.381
819.07 2 0.0013 18 -18 156 117 57.806
824.22 2 0.0014 17 -17 143 103 49.061
825.51 2 0.0012 17 -17 187 144 65.674
834.87 2 0.0013 15 -15 171 121 42.812
850.83 2 0.0014 16 -16 146 104 45.924
859.52 2 0.0001 18 -18 438 389 125.44
860.02 2 0.0012 18 -18 180 138 73.399
860.49 2 0.0011 18 -18 203 163 71.634
868.88 2 0.0011 17 -17 214 172 63.762
890.38 2 0.0011 16 -16 219 176 54.724
894.08 2 0.0012 21 -21 173 123 90.733
899.18 2 0.0013 16 -16 167 120 46.111
908.06 2 0.0013 17 -17 165 119 52.736
936.66 2 0.0008 18 -18 323 275 96.14
1103.5 2 0.001 18 -18 245 191 83.778
 
You're all right, but it's all about the first seconds of the news. I am talking about the spread widening by about the amount of the news move up and down just before the news comes out. Hasn't any of you come across this? ))
 
Daniil Stolnikov:
You're all right, but it's all about the first seconds of the news. I am talking about the spread widening by about the amount of the news move up and down just before the news comes out. Hasn't any of you come across this? ))
I have not, if you tell me when it happened (and if not recently), I can look at quotes from EE and Misecks if it happened there - anything can happen in the kitchens.
 
Daniil Stolnikov:
You're right what you say, but it all relates to the first seconds of news. I'm talking about spread widening by approximately the amount of the news move up and down just before the news release. Hasn't any of you come across this? ))

Well, the kitchens also seem to buy currency to sell to us, so they widen the spread to protect themselves against slippages.

In fact, the spread is many times larger than what we see. I often tried to catch "impulse" at such moments in an offer or bid price.)

How perplexing it was when trades opened much worse than in a quote, thus spread increased, for example, to 30 points. Not quite true + slippage = the whole 70 points may be.

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