How to trade forex news

Trading forex news strategy in MT5

In this post I will write about how to trade forex news with MT5 Order management. This is the safest method that I know, because pending limit orders are not smart order types to prevent bad market conditions for order execution (huge spread, price slippage, price gap,...)

Forex news trading strategy important facts (my trading approach in MT5):

  1. Prepare time alert 15 minutes before high impact news and mark best possible supply and demand zones where price can go
  2. Wait for news to be released and see if marked supply demand rectangle zones are broken/engulfed or they are consumed (level hold price)
  3. If zones are broken then I wait price to retrace back to news release origin and try to enter market in this area of big liquidity gap
  4. I use Trading box Order management for Metatrader 5 to execute trade with help of advanced trading orders (smart trading order types)

On first picture below I show how I prepare my chart for trading forex news strategy with trading box tools. I used pullback limit order with Fixed risk option. This can significantly improve risk reward ratio of trade, increase lot size but the risk stays the same. It is really great advanced order type for forex trading based on news releases.

Second picture already show the result of trade that I was describing above. This is how to trade forex on news releases. I waited news to be released and demand with fresh orders is created. Then I used Pullback limit order to place smart order trade. You can see how origin of news spike had fresh orders, because price reacted strongly from demand opening my buy positions at better price than original order box price. This trade was executed in MT5 forex news trading.

How to trade news forex strategy

Below is whole video where I describe how to trade news forex strategy. I explain which trading tools for MT5 I used and how I place order in fresh demand zone where unfilled orders are waiting to be executed when price come back to demand level. Trade forex news strategies with TBOM (Trading box Order management) is my passion to enjoy trading markets. I become really excited about forex trading news with MT5.

How to trade forex news spikes

This picture below show how to trade forex news spikes and protect trading account before disaster. You can see big bull candle spiked trough my placed order box but orders were not executed, I didn't lost a penny. If I would use limit orders then I will lost a great amount of money with this news release. This is why news spike trading can be really dangerous. It is better to wait news release forex and then trade after like I show in video above. There was also spread filter protecting my smart virtual order before order execution, because there is huge spread at forex news release that result in extra costs. I like to enter after forex news release when spread is back to normal again.

MT5 Forex news trading strategy in Metatrader 5

Video below is 2 minute long but teach important lesson how forex trading news can be dangerous. I like to execute forex news trading strategy only after forex news are already released and market create correction to fresh zone where order are waiting to be executed. Trade forex news strategies with great caution because it can empty trading account in no time and all money is lost. Forex trading based on news releases is only for experienced traders who know all risk of news trading forex. How to trade forex on news releases is for me still big challenge to master it.
Download Trading box tools for Metatrader 5 or Metatrader 4 from mql5 market HERE.