A new way to trade fundamental (news) releases

Markets change Traders, that’s a fact.

The way the markets traded 15 years ago is definitely different from the way it is currently trading. If you found a system that worked 15 years ago, I assure you that it wont work today, that simple.

The only way you can survive is by Adapting to the Market Conditions, there is just no other way.

And the same happens with fundamental releases…

Fundamentals Trading 15 years ago

Back when I started to trade, after an important announcement such as the Non-farm Payrolls report, interest rate announcements, GDP among others… The market could move 200 pips in just a few seconds…

Ahhh I remember those days, trading was really easy!

You just would set two pending orders before the announcement, and you were good to go.

I remember one time I was in Las Vegas with my girlfriend, it was friday NFP release day, she wanted to wake up early to take a tour to The Grand Canyon…

I told here to wait a little, a just needed a few minutes to set my orders on the EURUSD… which I did.

And when we came back, just one of them got triggered and you guessed it. It hit my TP order within a few minutes…

That’s how trading was 15 years ago…

Fundamentals Trading 5 – 10 years ago

Then something changed…

The straddle technique in which you basically set two pending orders, one above and another one below market action stopped working…

Most of the market will whipsaw, hit both pending orders, and the market ends up just in the middle.

So you’ll have two trades, long and short, in the same currency pair, and both of them in a loss.

That wasn’t a good experience… believe me.

Also, brokers started with slippage, requotes, invalidating trades, etc.

So we had to adapt! So I took the determination to stop trading important fundamentals, stop holding my trades during important fundamentals.

That was the end of fundamentals trading…

Fundamentals (news) Trading Today

Today it seems that the market has changed again… I dont now if its just me or you have noticed it…

The market does not seem to react that much to important fundamental releases anymore.

I notice because sometimes I hold my trades for several days (when I try to get the whole swing).

And I have one rule regarding news announcements… If I don’t have at least 70-80 pips on my favor, I’d just close my trade before any important announcement.

For instance, today I had a trade in the USDCAD… I had to close it because of that rule. And the same happened last Wednesday.

Now… what happened to the market? Did it react to the NFP report?

It didnt…

And that about last Wednesday… during the FOMC statement?

No reaction either…

And that’s what I’ve been noticing in the last year or so…

So I think we need to adapt again.

The new rule would be something like this:

IGNORE FUNDAMENTAL RELEASES

Do nothing… if I’m holding a trade, just keep it…

Your Turn

Have you noticed the same thing?
Do you agree with me?
How do you handle fundamental releases?

Please comment.

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Sylvester

    You’re perfectly right. I closed positions on USDCAD also and I’ve been checking the charts without seeing anything unusual, before the news release I even checked previous months without noticing any significant movement. I think I’ll start ignoring it too.