Trading the News a Success
June 9, 2006 by Trader Rich
So it was a very stress free week of making 58 pips through FX Engines. I made 2 trades this week trading the news and both lasted less than 5 minutes. This was pretty much a 1 to 3 risk reward as both trades had 10 pip stops. I'm not telling everyone to run and sign up because 1 week doesn't tell the whole story but like I said before, this platform has unbelievable potential. The only question is how long can it last? Seeing that FXCM is taking the action from FX Engines, would they eventually throw some nuts into that "engine" to make it stall? I met the CEO of FX Engines last Saturday and he stated that unlike trading through the FXCM platform, FXCM cannot see orders on the FX Engine side nor can they see any stop/loss or limits. This is what I think the process is:
- You place orders through FX Engines either manually or using one of their packaged engines.
- FX Engines has servers with some Application Programming Interface (API) to FXCM which enables them to obtain tick data and provides them with the ability to place orders
- If the criteria of your trade is met, a buy or sell order is initiated from FX Engines to FXCM
- Exit criteria is computed on FX Engines servers. Once the exit criteria is met, an order is placed to close your position
Next week we have Business Inventories (4 out of 5 star trade the news rating) and PPI (5 out of 5 star trade the news rating.) I'll be sure to keep everyone updated on the progress.
Another visitor to Forex Project sent me an email today telling me that she made 46 pips today on FX Engines after hearing about it here.
This doesn't mean I'm giving up on technical analysis whatsoever. It would be nice if I could continue to automate trades through FX Engines and concentrate on trading discretionary using chart patterns.
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Rich, I’m curious about something on the live FXEngines (I’m still using the demo). Since it uses the FXCM platform do you see the trades on FXCM’s platform after it’s executed?
I wonder that so that you could not set an exit strategy and then exit through FXCMs’s platform when you want?
Does my question make sense and do you know if that’s possible?
William, good question. I was wondering the same thing last week. You can login to the FXCM platform and see your open orders but you cannot execute anything from the FXCM platform. When you login, it tells you that you are in READ-ONLY mode. The accounts are linked and you can only execute trades from Fxengines.
Gotcha. Thanks for answering that. I guess it’s not that big a deal since you can close the order anytime from FXEngines. I’m still learning FXEngines but so far I’m really impressed.
Thanks for the help.
The other cool thing I noticed is you can immediately execute a trade from FXEngines using the arrows next to the quotes.
I will use the experts to do trades with FXEngines when I’m sleeping but since I can place immediate orders I will continue to use Newstrike and trade news releases manually (based on variances of the report) on FXEngines during the NY session.
That way I get the best of both worlds (manual and automated)! Pretty sweet!
Hi Rich,
Great to see you make some progress with FXengines, however do you think their news strategies will work long term with FXCM? I doubt about that since FXCM does not like clients who make money trading the news. I WAS with FXCM since last friday, they put me on manual dealer without any reason. Probably, I was making too much money trading news on short term (4-10 min trades)which they don’t like, so, now they want their money back putting me on their dealers. So, I grabbed my money back home and opend an account with Oanda.
Regarding trading the news: if you trade short term and make money on this, FXCM will place you on manual dealer sooner or later, sad but a true story from myself. When on manual dealer, well you can forget trading spikes and news events because they will requote you until you are wrong.
Best,
Wim
Wim, wow, I wish I had your problem. I was mentioning this exact point last week about FX Engines, can this work long term? FX Engines deals through FXCM and FXCM gets part of the spread but I really don’t know what to expect long term. I will send an email to the CEO to see what he has to say on the subject.
Just wanted to say hi and nice job on your website.