News Filter Addition to Ed's Price Action EA
NOTE: As on June 2012 a "News Trading" option has been added to Ed's Price Action EA (see details at the bottom).
Ed's Price Action EA has optional News Filter inputs that can be used to tell the EA to avoid trading X hours before and after low, medium or high impact news releases.
If, for example, the EA is loaded on USDCHF, and you have the news filter on true, the EA will monitor news releases affecting USD and CHF currencies.
Low impact, medium impact, high impact news releases, and "speaks" are optional inputs which you can turn on or off.
The EA will only monitor news releases that are affecting the currencies the EA is loaded on.
So if the EA is loaded on EURUSD then it will monitor EUR news releases, and USD news releases.
If you have the EA on every USD pair (EURUSD, USDCHF, AUDUSD….etc., etc.), and no other pairs, and the “MinsBeforeNews” input is set at 720 minutes (12 hours), and there will be a high impact news release affecting USD in 10 hours, then you will get no trades on any USD pair if the time is within 720 minutes (12 hours) of the release.
A comment will appear in the upper left corner of your chart letting you know whether trades can open or not.
Here is an example of how this will appear on your chart:
In the above image "Can Open (NewsFilter): No" means the EA is not within the trading time because of your choice of settings about not entering trades X minutes before a news release.
You will know when the EA is within a trading time when both "Can Open" comments say "Yes".
In the image below there will be two high impact news releases in less then 10 hours. These comments will all appear on your chart if you set the News Filter input to true:
Click the Image to see full chart
The news filter utilizes a Forex Factory Calendar indicator that is installed in the indicators folder automatically when you install the EA.
There is no need to attach the indicator to the chart. The EA will use it internally.
Within the EA you can adjust how many minutes before a low, medium or high impact news release you want the EA to stop trading, and how many minutes after the news release you want the EA to start looking for trades again.
Sometimes it is a good idea to stop trading 15 – 20 hours before a news release if the EA has opened several martingale limit orders. You will want to give the orders a chance to close in profit.
But if the orders open only 3 – 5 hours before a news release the orders may still be open come news release time and may spike into a major loss (if you are using the limit orders) or major wins.
There is also an optional input for telling the EA to close trades X minutes before a news release on a currency pair that will be affected by a news release.
The dotted vertical lines on the chart below reveal past news releases or “speaks” so you can observe the affect certain news releases had on the currency the EA isn loaded on (these vertical lines will show up when you are using the EA with News Filtering on true):
Click Image to See to see full Chart
You can utilize the news filter inputs to avoid trading during news releases as shown in the above image.
When the news filter is on true, and the EA is not trading because of a upcoming news release according to the minutes you set, you will see a comment on the chart that says: Can Trade (NewsFilter): No:
News Filter Inputs
News Filter (true/false option)
MinsBeforeNews = 1000 (mins before an event to stay out of trading.)
MinsAfterNews = 180 (mins after an event to stay out of trading.)
CloseTradesBeforeNewsRelease = false
MinutesBeforeNewsToCloseTrades = 180
TradeNews = false (new update)
AfterNewsTrading = 5 (new update)
IncludeHigh = true
IncludeMedium = true
IncludeLow = false
IncludeSpeaks = true
If the news filter in on true, and you have speaks on true as well as medium and high impact news releases on true, and low on false, and you have 1000 (minutes) in the MinBeforeNews input and 180 in the MinsAfterNews input, and the EA is loaded on, for example, every USD pair (EURUSD, AUDUSD, USDCAD etc., etc.), then the EA will not open any trades on any USD pair if there is a speaks, or medium or high impact news release, within the next 1000 minutes.
If CloseTradesBeforeNewsRelease is on true and MinutesBeforeNewsToCloseTrades = 180, and trades have opened on any USD pair (where the EA is loaded) prior to the beginning of the 1000 minutes, then those trades will automatically close 180 minutes (3 hours) before the USD news release.
UPDATE: News Trading inputs added to Ed's Price Action EA
If News Trading is on true, and AfterNewsTrading = 5, the EA will start looking for trades at a news release until 5 minutes after the news release . It can open a trade exactly at news time or minutes after, depending on your choice of inputs. You can also hedge trade during news with buylimit and selllimit martingal or non martingale orders.
VIDEO: News Filter addition to Ed's Price Action EA
Updated Video for News Trading addition to Ed's Price Action EA
Ed's Price Action EA