What news should I turn off EAs?

[Anonymous]

I know Petko says he does not trade during the news but, since the back tester doesn’t stop trading during the news should I?

And what News should I look out for?

I know Nonfarm Payroll is a big news event.

Also, do I turn off trading and close all open trades for all my demo and live accounts or just my live accounts?

[Anonymous]

Hi Jaylon,

Turning off news events is an individual traders decision.  Keep in mind that over the long term some news events will go against your trading and some news events will help your trading.  So over the long term it will average out.

Now lets consider creating EA’s.  When we create an EA we backtest it over the last 6 months to 1 year of more.  Personally I backtest over the last 12 months.  This means that the backtest includes all the news events over the last 12 months and has proven to be profitable.  For this reason I do not close trades during news events.  After I create an EA I will put it in a demo account and watch it for a couple of months.  If the EA proves to be profitable I will then move it to my live account.

Hope this helps.  If you have more questions about this subject just ask.

Alann

 

[Anonymous]

Thanks, Alan for your insight.

[Author]

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