Last week we had a sort of confirmation from the news of the Forex economic calendar, which brought me to try this type of strategy that I’m going to explain you. However this strategy seems to be valid in the very first seconds after the publishing of the economic news and for a maximum of 5 minutes, that is from 60 to 300 seconds.
First of all we need a reliable economic calendar and the one on investing.com seems good. Then we must select among all news of the week the ones that can give rise to more volatility. Once identified, we note them down and keep ready to intervene.
But how do we have to invest according to this strategy?
Each selected economic news must have four essential data, that is:
- § Volatility degree for the relevant currency
- § Publishing date and hour of the news
- § Previous result
- § Foreseen result
Here are the steps you should follow:
- Select only the news that can give rise to more volatility.
- Open the broker and keep ready to invest at 60, 120 or 300 seconds (24option is suitable).
- In another card of our browser, close to the expiration hour of the news, continuously update the economic calendar’s page until we will see the news published
- The news can be positive, negative or neutral, so we will act as follows:
- If the news is positive (the result is green) for the relevant currency X, we will choose a Forex couple in which the currency X appears in the numerator and immediately open an upward position (SU, CALL option). Obviously if we choose a couple of currencies in which the currency X appears on the denominator, we will open for that couple a downward position (GIU, PUT option).
- If the news is negative (the result is red) for the relevant currency X, we will choose a Forex couple in which the currency X appears in the numerator and immediately open a downward position (GIU, PUT option). Obviously if we choose a couple of currencies in which the currency X appears on the denominator, we will open for that couple an upward position (SU, CALL option).
- If the news is neutral, that is that the result is identical to the foreseen one, then it’s better to give up. For a particular currency can be published also several news at the same time. In case all of them are positive, act as described in point A, in case they are all negative, act as described in point B, in case one of them is opposite to the other (or to the others), it’s better to give up.
It’s always important to repeat that we are speaking of a strategy, which can give profitable results but, in the same way, it can also let you lose the whole investment. So always act very carefully, without letting it get out of hand. The imperative is always the same: SELF-DISCIPLINE!
The investment in a very short period, up to a maximum of 300 seconds, derives from the fact that daily observing what happens close to the economic calendar’s news, you can see that the news tends to affect the price exactly when it’s published, while in the following periods we don’t care it any more.
It’s useless to say that we are very pleased to discuss together about this matter, so, if you want to post your suggestions, advices or reflections, feel free to do it.
Update: video guide