Strategy Library

News Trade

Trade the spike — or stay out and let the news settle first.

News trading is binary: huge wins when you're right, huge losses when you're wrong. Two viable styles — straddle the announcement with pending orders, or wait 5-10 minutes for the initial spike to settle and trade the second move.

How to identify it

  1. Mark high-impact red-folder events on Forex Factory.
  2. Note the time, pair, and which currency it affects.
  3. Have a plan before the release: bias / no-bias / fade.

Trading rules

  • Wider SL (2-3x normal) because of news volatility.
  • Smaller position size (0.5% max).
  • Skip if the release is unclear or your bias is weak.
  • Use limit orders if straddling; market orders only for second-move trades.

Common pitfalls

  • Slippage and gapped spreads eating your SL placement.
  • Trading the first 30 seconds — too much noise.
  • Holding after the move stalls because 'it might continue'.

When to use it

NFP, FOMC, CPI, ECB. Skip lower-impact events unless you have a tested edge.

Best pairs

XAUUSD, EURUSD, GBPUSD

Best session

NY morning (most US data)

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