News Day Trader

4 advisors for the price of one  

Introducing the News Day Trader. This Expert Advisor trades on economical news releases. This EA can use four different strategies for trading news releases. It doesn't use high risk Grid, Hedge or Martingale recovery strategies. This EA works even better when used in combination with the Range Breakout Day Trader, which will optimize the amounts of trades made per day.

This thoroughly tested Expert Advisor opens one position during high and/or medium impact news releases. 

Four different strategies can be used for trading news events:

• Strategy 1: The news release straddle strategy opens seconds before the news release a buy stop and a sell stop order at a certain price distance from the current open price. When one of the orders gets triggered after the news release, the other order can be cancelled.
• Strategy 2: The news release trend strategy opens a buy or sell order seconds before the news release. The trend filter determines if a buy or sell order is opened and will increase the probability of opening the position in the right direction of the price surge.
• Strategy 3: The news reversal strategy opens a buy or sell order after the news release. The reverse signal indicator on the higher timeframe determines if a reverse trade is made when a certain amount of price change has occurred.
• Strategy 4: The reverse reaction strategy does not work only during news releases but at any moment when on the higher timeframe a price movement occurs where the Inverse Signal indicator affirms a price reversal after a certain minimal price change has occurred. For this strategy it is not necessary that the news calendar is activated.
  

All four strategies can be used with an optimized trailing stop which will start after a certain amount of profit has been reached. This way your profits will stay protected if the market reverses.

News from different countries can be selected depending on which currency pair you use. You can use either the Meta Trader 5 built in economical calendar or use the economical calendar from Forex Factory.

The news events can also be back tested. For this you need to place a news.csv file in the following directory: C:\Users\username>\AppData\Roaming\MetaQuotes\Terminal\Common\Files

You can create the csv-file yourself by using this script which you can download here or download the csv-file from the comments section which has economical news data from Investing.com from 2021.01.01 to 2024.08.01 for all currencies which can be selected in the news settings of the Expert Advisor.

With back testing hundreds of news events you will have a big advantage compared to the manual traders which have a higher probability of losing their trades during news events.

But make sure when trading the news that you have a broker which doesn’t widen the spread to much, as they will take a big piece of your profit by widening the spreads or immediately after the news release take out your stop loss. Preferably use a broker with an ECN account. 

Recommendations:

• Any currency pair can be used which has one of the following currencies: EUR, USD, GBP, CHF, AUD, NZD, JPY, CHY
• Optimized set-files for USDJPY and GBPUSD can be downloaded here.
• Timeframe: M5
• Minimum deposit : $100
• Account type: ECN, Raw or Razor with very low spreads
• It is important to use low spread accounts for best results
• Use VPS to keep EA running 24/7
• Leverage 1:30 (1:500 if using high risk settings)

Specifications:

• No Grid or Martingale system
• Every trade is protected with a Stop Loss
• Extra protection possible by setting up the max. equity drawdown
• 4 different strategies which can be used for trading economical news
• Exit strategy incorporates a take profit level and a trailing stop using ATR values
• Option to choose risk based lot size or fixed lot size
• Option to send notification/email alert before high and/or medium impact news releases
• Time settings are automatically adjusted to your brokers server time

PARAMETERS DESCRIPTION

Trade settings:

• Magic number: EA identification number
• Trade comment: Text which can be added as a comment to the trades
• Maximum spread size: If the current spread is higher than the predefined spread size the position or order will not be opened
• Lot mode: choose to set lot size according to the risk percentage or a fixed lot size
• Risk percentage: The risk percentage at which the lot size will be calculated
• Fixed lot size: The value of the lot size if a fixed lot size is set in the lot mode
• *Maximum equity drawdown (on/off)
• Loss percentage (equity drawdown) at which the position will automatically be closed
• Close at predefined take profit percentage (on/off)
• Profit percentage at which the position will automatically be closed
• Close position at predefined time  (on/off)
• Set hour and minutes at which the position will be closed
• This Expert Advisor automatically adjusts time settings to the time of your brokers server
• Close open position or pending order after set expiration time (on/off)
• Time offset: Time settings are automatically adjusted, but if an adjustment is still needed you can offset the time here in amount of hours
• Expiry time (minutes) pending order
• Expiry  time (hours) open position
• Select news trading strategy: strategy 1, 2, 3 or 4

Strategy 1 (News release straddle) settings:

• Amount of seconds to place orders before news release
• Distance of sell-/buy stop from current price (in forex points)
• Take Profit (in forex points)
• Stop loss (in forex points)
• Stop Loss based on ATR value (on/off)
• ATR multiplier
• ATR period
• Turn on/off OCO orders (One Cancels the Other)

Strategy 2 (Trend following) settings:

• Amount of seconds to place order before news release
• Distance of sell-/buy stop from current price (in forex points)
• Take Profit (in forex points)
• Stop loss (in forex points)
• Stop Loss based on ATR value (on/off)
• ATR multiplier
• ATR period
• Timeframe used for trend filter
• Signal period used for trend filter

Strategy 3/4 (News reversal) settings:

• Amount of minutes to open position after news release (max 45 min)
• Take Profit (in forex points)
• Stop loss (in forex points)
• Stop Loss based on ATR value (on/off)
• ATR multiplier
• ATR period
• Timeframe used for reversal indicator
• Signal period used for reversal indicator
• Confidence coefficient (value between 1 to 3)
• Minimum bar size for signal
• Maximum bar size for signal

Trailing stop settings:

• Turn on trailing stop (on/off) 
• Profit percentage at which the trailing stop starts
• ATR multiplier: Value which will be multiplied with the ATR value (to set the trailing stop distance)
• ATR period: The period used for calculating the ATR (average true range)

**News settings:

• Turn on the news of the two currencies from the currency pair which you are trading (Make sure to turn off the news of the other currencies)
• Trade high impact news (on/off)
• Trade medium impact news (on/off)
• ***Use the Forex Factory economical calendar instead of the MT5 economical calendar in live trading
• Ignore news containing the word you place here (don't keep this field empty or it will ignore all news)
• Send notification before news release
• Send email before news release
• Amount of minutes to send notification/email before news release

*Note: If you use the maximum equity drawdown, it needs to be checked with the stop loss setting. If the percentage max. equity drawdown is too low, your positions might get closed before it reaches the stop loss order and might increase your losses.

**Note: If you want to use the news filter in back testing, you have to save the MT5 economic calendar as a CSV-file in the Common/Files directory for the time period you want to test. Here you can find the script for creating the CSV-file: MT5 Economic Calendar CSV exporter.

Or use the CSV-file with economical news data from Investing.com from 2021.01.01 to 2024.08.01 which you can download here.

***Note: Add this URL: "nfs.faireconomy.media/ff_calendar_thisweek.xml" in the 'Allow webrequest' in menu: 'Tools/Options/Expert Advisors' to be able to use the Forex Factory calendar.