How To Trade Economic Announcements
Let's make our lives easy, OK?
I like trading economic announcements for quite a few reasons, most of them because I feel that I am not only trading in a manner, time and place, where I am stacking the odds in my favor, but because I can schedule my trading - and being able to schedule my trading, as opposed to being enslaved to monitoring the market all day, every day, frees me up so that I can enjoy my day doing other things.
What are the advantages of trading economic announcements?
- Reoccurring events.
– You can coordinate your trading schedule around them instead of waiting for a setup à Frees up your time.
- What, When, and Where are known in advance à Easy to prepare for.
– What = e.g. Quarterly GPD.
– When = 8:30 am EST on the last day of each quarter.
– Where = S&P 500 e-Mini contract.
- Consistent setups - Action, Reaction, Run.
- Easy to trade - Lot’s of ‘under-the-hood’ actionable information available via …sceeto.
What unique information is available to you that can enable you to successfully trade economic announcements?
- The bulk of trading in electronic markets is done by a small number of large firms.
- Each of these firms creates its own proprietary economic models.
- Though each of these firms do their analysis independently, their results are similar..
- Each of these firms uses the output of these economic models to trade economic announcements via pre-programmed trading bots.
- These bots leave their footprints on ‘The Tape’.
- The Tape is inescapable.