also i wish to open that topic to know more about how important are each news to the market. Petko Alexandrov mensions in the courses that he is stopping the EAs on some of the news because of the high volatility…but i can say i am a beginner and i do not know yet which news cost high impact and i have to stop?
we are basically stopping the EAs before the news where we expect “unexpected” moves, such as quick moves or gaps or slippage from the brokers, where actually the market is moving so fast and they can hit the SL or reverse the trend direction. So basically there is no rule that we follow, just based on our experience and on the news ahead of us, we pause the EAs. What we would suggest you is actually to test with stopping and without stopping and with the time you will see which one works best for you.
There is always risk Jade, that is Forex, obviously we try to take as small as possible, but there are always situations with high risk. That’s where a good money money management comes. If you can not stop them on the exact hour, then you need to stop them the previous night. Or reduce the volume to 0.01 for example.
You are right Peter. Also the hot news take no more then 5-10 percent of the time, so we have above 90% to trade on the calm market. Of course there are always the unexpected high volatility news that are not announced in the economic calendars and we can not do anything to take precautions before those. That’s why we always advice to use SLes in the EAs
we have a new course that answers your questions a bit about the pausing. It is called London, New York and Tokyo Algorithmic trading. There I show how to create Expert Advisors that are trading only during each trading sessions. Of course, I show how to select the correct pairs and exactly the trading hours. Fundamental analisys are not needed here, because the EAs are taking quick profits within 7-8 hours.