What do you think about STRADDLE method?

dellan · 08-17-2006, 12:24 AM

What do you think about STRADDLE method?
I am getting very good results using this method, i dont know why some people create negative points about it.

aelimian · 08-17-2006, 01:14 AM

Quote:

Originally Posted by dellan

What do you think about STRADDLE method?
I am getting very good results using this method, i dont know why some people create negative points about it.

Please could you describe your STRADDLE method?

wcforex · 08-18-2006, 10:37 AM

I've been using straddling system too.
I love it especially before the major FA release.

happy trading

superbait · 08-18-2006, 11:43 AM

I did use straddle method a few times in the forex. you can do sell stop and buy stop 20pips apart from the current price. Straddle is best to use in the prior breaking news unemployment, non-farm data ( that is those monthly or quarterly schedule announcement ).

Straddle trade is best created 20 to 30 mins before the announcement and you need to monitor it very closely so that immediate action can be step in to rectify any change of direction or flutuation. The nett profit gaining from straddle can vary from 50pips to 150pips per currency pair.

There are trader who only trade base on news only but the monthly return can be around 1000pips to 3000pips on average.

aelimian · 08-18-2006, 01:00 PM

Quote:

Originally Posted by superbait

I did use straddle method a few times in the forex. you can do sell stop and buy stop 20pips apart from the current price. Straddle is best to use in the prior breaking news unemployment, non-farm data ( that is those monthly or quarterly schedule announcement ).

Straddle trade is best created 20 to 30 mins before the announcement and you need to monitor it very closely so that immediate action can be step in to rectify any change of direction or flutuation. The nett profit gaining from straddle can vary from 50pips to 150pips per currency pair.

There are trader who only trade base on news only but the monthly return can be around 1000pips to 3000pips on average.

Thanks. So you do not use stop loss? If I understand you cancell the trade going in the wrong direction. When do you take profit and what broker do you use for trading this straddle system?

superbait · 08-18-2006, 01:44 PM

Sorry for my brief comment on this topic. Yes each pair of straddle must have SL which is 40pips ( due to each trade is 20pips apart from the current price ). When I said the price on the wrong direction is referring to when the price move up and break into one of the straddle, then change direction to and head to the opposite straddle and break into it. Under such circumstance I will close the wrong straddle when the price go back -20pips ( that is the current price before the news ).

If there is no wrong direction occurred, it is good to cancel the other straddle order and add more trade on the correct direction ( you must be quick when the price shot up more than 50pips ). Btw the trialing stop of 10 to 20 pips must include once the correct direction is confirmed ( > 30pips in profit ).

The total capital involve can be ranged from 30% to 60%, so it is better to read more news to judge the volatility of the impact. On the additional of putting more trades while on the correction direction, the slippage can go wild as no forex service provider can give you the constant slippage at that time. Hence it is no different whichever broker you choose from, of course big broker firm can give more consistant slippage than smaller firm.

dellan · 08-18-2006, 06:59 PM

Quote:

Originally Posted by superbait

Sorry for my brief comment on this topic. Yes each pair of straddle must have SL which is 40pips ( due to each trade is 20pips apart from the current price ). When I said the price on the wrong direction is referring to when the price move up and break into one of the straddle, then change direction to and head to the opposite straddle and break into it. Under such circumstance I will close the wrong straddle when the price go back -20pips ( that is the current price before the news ).

If there is no wrong direction occurred, it is good to cancel the other straddle order and add more trade on the correct direction ( you must be quick when the price shot up more than 50pips ). Btw the trialing stop of 10 to 20 pips must include once the correct direction is confirmed ( > 30pips in profit ).

The total capital involve can be ranged from 30% to 60%, so it is better to read more news to judge the volatility of the impact. On the additional of putting more trades while on the correction direction, the slippage can go wild as no forex service provider can give you the constant slippage at that time. Hence it is no different whichever broker you choose from, of course big broker firm can give more consistant slippage than smaller firm.

hmm
i think oanda is the best for it..
i am doing some EA, and testing anothers, i am getting incredible results, at the final of the month, i will post a statement.