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Nahman you are an evil man :p
I have definately observed that there is a correlation between some spikes and news.
I spent some time trying to code this but got distracted by more successful trades...
However... I have read a couple of treatises about using the timing of economic news to make trades on FOREX and have been vaguely successful at it.
Basic premise is that a particular pair WILL move, direction unknown, based on econimc news, such as RBA interest rate decision...
The idea is to bracket price just before the news announcement with a buy order above and a sell order below.
Each order has a profit limit or stop of a certain amount of points.
As price spikes , the order is opened, and then closed once the profit limit is hit.
This does work but there are some drawbacks...
As the market often moves very fast, with the Market Makers I have been using as brokers, there is no guarantee that the order will be filled at the desired price and slippage can be horrendous.
THe same goes for the limit sometimes the slippage means it is not hit right.
Also, sometimes price can slam up and down, taking both orders out and if stop losses are in place both can be hit to the detriment of your capital.
how big the distance between order open and profit limit is arbitrary.. I have experimented with a simple 40 points on the AUDUSD pair with some success.
;)
