Hello Traders,

and those who want become a trader.

For today i will show you a method to gain more money with trading the news.

News Trading? not for me. BUT WAIT. you don't need any fundamentals knowledge or an indicator to trade this successful.

Well, my english is not so perfect, but i try my best.

"What you say! i don't need any indicator or traders knowledge?"

Thats right. Only you need a little bit money, patience and an account at OANDA or an online broker which provide FX SPOT (option calls).

"What are you talking, man!"

So simple and easy. Ok let's begin.

Look at the lastest news which influence the US$ market for today 24th april 2008 at 12:30 GMT. this news had high impact and the market price go south.
What can we do?

1. you could have opened a position with 1 lot before the news releases and hope it will go in the right direction. and maybe set hedging or similar things to lower the risk. and if you are a lucky trader you will gain until now 800 US$ for the 80 pips. thats a lot money.

i say you could get about 2500 US$ with the SAME margin (1 lot).

"You are crazy!". Yes, you're true.

Now we come to number two.

2 you could set a MissBoxOption 15 minutes before the news will release and gain about 30% - 80% profit of the purchase price.
to compare with number 1:
purchase a MissBoxOption for 3140 US$ (1 Lot) set the start date 5 minutes after news release and a duration of 5 minutes (minimum) and only a range of 10 pips (minimum you could set).
then you have to wait. if successful you gain 30% - 80% profit. about 900SU$ - 2512 US$.
thats it.

i will show you a example with the news release today
(Core Durable Goods Orders m/m).

what you see in the 1st picture below is the box 5 minutes after news release:



the next picture shows the chart 5 minutes after the news release:



and the last picture is at the time when the charts are behind the box


(box resize depends on zooming)

thats all. gained 80% profit of the purchase price.

so if you are all interested in how this works i will give you a step-to-step instructions.

happy boxing

PriNova

It's very interesting.

A nice tool to diversify, it's cool to find other tools sometimes to get rid of the boring market.

I longer see it on Oanda, but never take time to learn it

If you can provide more analysis, this will be great

__________________
Picasso is the best !

Ok, traders

this system is absolutely free !!!

what is the BoxOption in OANDA?

with the boxoption you could purchase a kind of prediction contract with your broker.

if you predict the price will HIT the box you will get back your purchaseprice + a premium (30% - 80%) which is calculated.

if you predict the price will MISS the box you will also get back your purchaseprice + premium(30% - 80%).

But if the conditions not met you loose the purchaseprice.

the good think is. while the price is went away from your hit-box you could sell the box back to your broker (the same with the miss-box), but not for the purchase price. this lower the loss a little bit. sometimes 10%-50% of the purchased price.

the best is you do not have a margincall or pay SPREADS.

why is this good?

with my system i only use the BoxOption with news releases. and with OANDA they do not have fixed spreads. during release the spreads widden sometimes more then 5 pips on major currencies. thats really bad :-(

and they do not provide hedge functionality.

ok here is the instruction to trade the FXBox:

1. Look at an economic calender for all news releases at a day. pick only the news with high impact prediction ex.:

a. Interest rate decision
b. Retail sales
c. Inflation (consumer price or producer price)
d. Unemployment
e. Industrial production
f. Business sentiment surveys
g. Consumer confidence surveys
h. Trade balance
i. Manufacturing sector surveys

at the Forex Trading System with Forex Signals and Broker Reviews site there is a calendar where you could open the historical news release charts. this is important, because to go sure there are a high impact news also in the past.

i would not get credits from the side nor the author ask for advertisement. it is only my personal calendar tool. use others if you like.

2. login to oanda and draw a MISS-pricebox with a startdate 5 minutes after the news release you selected. because you will predict that the price will miss the box after the news releases.

VERY IMPORTANT: You have only a 15 minute range from the current candle until drawing the box. hope you understand. prepare early to draw the box

3. set the box to a 10 pip range and the middle of the box have to be about the same height like the midprice in the chart.
4. set the timeduration to 5 minutes. this is the minimum allowed.
5 set the purchase price to whatever you want min. 1US$.

6 You will see the payment price of the box you set. the more the price is near to the box the more payment you will get if the conditions are met. more below.

7. Wait until the currency pricetime is a little bit more then 15 minutes until it reaches the box. fine adjust the pip range to the middle and then

press 'SUBMIT'.

but be aware! if the time range is smaller then 15 minutes to the box you have to set the start time 5 minutes later. and this is sometimes to much and the box could hit. this is not what we want. we want missing the box.

20 minutes later you will see the results. with high impact news the price will miss the box and you will get your profit + the purchaseprice of the box.

if you compare the historical news releases and set your price box imaginelly you will see that around more than 80% the box were missed. i did not compare all releases but the most i saw the conditions met.

why the missbox?

you know if news releases the price will move in any direction, but you don't know at which direction.

i'm right? but if you know in which direction the price after release goes then you do not need a pricebox.

important is the movement. this is why we choose high impact news.

what you also could do is to set a higher piprange and or timerange of the box. the more you set the more you will get, but the possibility that the box will hit is higher.

at the non-farm-payroll news every first friday of month you could easily set a 20-30 pip range and 10-15 minute range. this will gain more then 300% profit. but be sure what you do.

do i forget something?

ah yes, after 20 minutes you will see what happend. a green box is good a red box is bad.

money management is your own decision. i have mine and this is not calculated good until now

maybe you have some advice?

thanks



PriNova

can we demo this on Oanda?

oh, yes of course.

this is what i recommend, it is ever better to demo this before go live.

i done this with starting account of 100US$ and now have 608 US$ with some losses at the beginning, because i traded also weak news.

PriNova

can you direct me to it?

thanks

you can open a demo account at oanda at OANDA, The Currency Site: Foreign Exchange Services and Trading
PriNova

maybe a good trade could be at 23:30 GMT
JPY CORE CPI y/y some calendars shows high impact

what do you think?

PriNova

PriNova,

I fully understand what are you explainig but is not easy as you have written.

"The box" is just a different way to play with with option or derivatives. When you made some transaction (because this is not a trade) you're purchasing by buying or selling a call or pu or some exotics.

To do this relatively safety you need to know at least something about delta and gamma.

FXBox Options - OANDA FXTrade

Trading with exotics is interesting and lucrative but the money management is completely different than normal trading. Every time you purchase an option you have to pay to the broker some fee that is calculated on many things like volatility and expiration.

Example: if the expiration is closely to the price, let´s say one hour, you have to pay more than if the expiration is next week. Sometimes the RR makes no sense to purchase the exotic becuase to win 1000 you have to pay 800.

From OANDA website:

Maybe to buy something for 1$ the expiration is one year.

Exotics, options and others are very interesting as hedge or risk control.

I was very busy in the 90´s working with this and commodities.

Farmers wants to sell their crop at best price, we advices to not sell when everybody was harvesting (OTC) and we made farmers to "sell" by "buying a futures contact" hedging with a call.

__________________

i think and see that it is not so difficult like u explained linuxser.

it is only buy a miss box 5 minutes after news release and with only 10 pip range and 5 minute duration. thats all.

more you don't have to know.

really important is to pick the best news. with really high impact. then you know there will be a movement of more then 30 pips. thats enough.

since january 2008 there were 36 high impact news with 28 winners and 8 loosers.

the best are retail sales. the friday nonfarmpayrolls, interest rates and trade balances. if USD news the better. and if it is a flat market before news releases the better (sometimes 110% premium).
and with high volatility (only) 30% premium.

and with a good money management you could made a got profit.

i would never buy a box for 1 lot. i only take 1-3% of account balance. this depents on the last winner box.

if for example the last winner box was a 70% premium i only invest 50% of the last premium and the other 50% i stack my account balance.