Lesson 13 – News Avoidance

This is the forex software simulator I am using; https://soft4fx.com/software/forex-simulator.php

The number one thing that everyone is NOT doing while they are back testing is New Avoidance. This is because it is not fun to do!

If you are using an automated backtesting method you are just fooling yourself and punk-bitching your own results.

I know this because I have played with the automated methods of backtesting and then I did it again with the my backtesting software I use while avoiding news events and the results were massively different.

I also think you better be aware of how the automated trading is being performed,

Is it exactly how you would trade it?

Do you even know how you want to trade in every situation?

Well, I watched how the auto trade programs trade and guess what, the automated trading EA that is programmed the NNFX way is making mistakes while they trade so you better be WAY sharper on what you are doing using it.

Do not be an idiot. Taking the time while meticulously backtesting while avoiding news events is going part of this journey so roll up your sleeves, buckle up and start trading with news avoidance while you backtest.

The software I use allows you to mark news events on your charts as you trade you just have to single out the events you want to avoid and keep track of them as they appear either when you are about to enter a trade or if you are already in one.

Game Plan

Do not enter the trade if one of these news events is coming up within 24 hours.

If you are in a trade with a big event coming up – if you are in a losing trade with a big news event coming up, exit it.

If you are in a winning trade with a big event coming up – before the first ATR of profit taking, or took profit and trade is below the first ATR, exit it.

If you winning big, took the first ATR profit taker, moved to b/e and the trade is winning big as normal. Proceed and carry on as usual.

Those websites are as follows:

Forex Factory: https://www.forexfactory.com/calendar.php

Street FX: https://www.fxstreet.com/economic-calendar

Here are all the news events you need to avoid.