Quoting learningtheropesDislikedAhhh, and that is the beauty of an entry order straddle.......if he sets them close to the price due to lack of pre-news volatility, gains seem "in the bag" in retrospect, however, if the release "lacks punch" and jogs up and down or vice-versa perhaps both are entered for an unpredictable ride???? For an unseasoned "newsie" (that is my new definition for news traders by the way....please feel free to use it?!) like me, with an uncertain volatility guarantee (unlike NFP of late), I think a 15 or 20 pip entry on both sides just b/4 release is perfect b/c if no volatility is created immediately, you can chicken out and cancel both orders right away, or like tonite, I see potential (in retrospect.....didn't play) for a net Long of 15-20 pips.......let's face it, you didn't think you'd score 100 pips on an AUD release, did ya?????Ignored
I used to straddle as near as 10 pips away with 10 pips limit as well.
Should the price surges by 20+ pips, I am assured of a 10 pips win.
I have made some profits as well as lost some as well. So I dont do this anymore.
Secondly, since I am using FXCM where I cant modify my entries seconds before the news, I am forced to put my entries 25-30 pips away from the price for allowances