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Old 25-05-2009, 14:14
magister magister is offline
Level II Lasers Member
 
Join Date: Feb 2009
Posts: 22
Default Spike Trading

You don't know what you are talking about obviously.

You throw that blame game around on me, how cliche.

There are different types of news trading for your information.

I am talking about spike-trading. This is where you have some software
which gets the news very quickly. If there is a substantial deviation
from expectation, then the software will "auto-click" a buy or sell
for the currency which the news will affect, ie UK Retail Sales for
the GBP/USD

Now back in 06-07, you could spike trade even on Oanda, we were
loading up with 10-50 full lots on the important news. I remember once
the BOE did a surprise unexpected interest rate increase, we saw 200
pips in seconds....one member made 80 grand on that one trade. Soon
after Oanda started to widen its spreads during the news.

News spike trading requires a broker to fill you, end of story it is not about
shifting responsibility for your trading on something else besides yourself. I
know that many traders do this, they blame their lack of success on the
signal provider they subscribe to, or the lack or clarity in the strategy they
purchased, anything but to shoulder the responsibility themselves. But for you to throw that one at me in the case of news spike trading, shows what little you know about trading the news. With news spike trading you need a broker with very fast execution and fixed spreads, if you don't have this, you will not succeed. It used to be easy to find, but the brokers got screwed by the spike traders and changed their technology, because essentially it was coming out of their pocket. If you look at Currenex platform next to a bucketshop broker you will notice different prices, this will be exaggerated during the news, so basically the spike trader is taking advantage of this difference, and as the bucketshop has to hedge their exposure, since they are not the real market, any wins from spike trading comes from them. Of course in early 07 many of us did use Currenex on the news, the Big Banks lost out in that case, as our broker was the named counterparty and the Banks noticed several million orders placed in the brokers name on the Tier 1 system, and barked at the broker, the broker then shut down all the accounts.

Of course, I still know brokers that work with spike trading, but I cannot trade 20 full lots anymore, because you have to stay under the radar or
else they will notice and flag your account, they will put you thru the dealing desk where every order has to be 'OK'd' by a human agent.

There are other types of news trading of course, pre-news and afterspike trading. These of course you can learn, they are not dependant on getting a fast fill. So perhaps this is the type of news trading you are referring to. Anyhow try not to be such a self-rightous knobhead and you might learn something before you blow your own horn.

Concerning Henry, I can only advise against his services....as he was involved with the following
Trading System: FXNewsWiz
FXNewsWiz.com - Mr. X Performance
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