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Old 02-07-2007, 12:38 PM
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Re: Trading The PPI and CPI

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Interesting I'd like to research that for myself. I do trade these reports using a fast news service with autoclick on british pound and euro futures. What is the liquidity like at these times - do you get really bad slippage? Here's my news trading journal Forex News Trading Journal

You may wish to consider using currency futures instead because they tend to react more to the news.
I wrote my own Excel macro that was linked to Reuters and my broker that automatically placed a trade based on the actual figure's deviation from consensus. Is that what you do? I didn't get filled most of the time so moved on to better ways of trading.

I notice the liquidity on YM immediately before 0830 economic data being released is sometimes single figures and the price gaps rather than moves up. I'm sure that if you looked at the time and sales hardly any contracts actually traded. Has anyone actually tried this straddling method on a live account?

Looking at the charts, fading the spike seems a better strategy but I've never tried it.


Last edited by notouch; 02-07-2007 at 12:43 PM.
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