Last week the United States Federal Reserve increased the discount lending rate. Because of this economic event, we saw massive moves in currency pairs related to the dollar. For some forex robots, this helped their trading profitability greatly, other systems didn’t fare so well. This raises important issues in utilizing forex robots, even the greatest systems can’t account for everything.
So the ultimate question is, should you let your robot trade through the news or turn it off; this depends on a number of things, mostly of which are circumstantial. If you have a high level of confidence in your robot, it uses a tight stop, and it’s traded such circumstances successfully in the past, by all means, let it trade the news. However, if this forex robot is new to you or for whatever reason you’re not comfortable with the robot, or the robot uses a very wide stop loss, you should consider shutting it down for the economic release. Finally, you have to consider which economic releases are significant for you to consider shutting down your robot. As you may know, there are dozens of economic releases throughout the week and you don’t want to be shutting your robot on and off throughout the week (that kind of defeats the purpose huh?). Just know that the biggest aspect of foreign exchange is interest rates. If we’re talking about an economic release that will have a large impact on interest rates, it’s probably worth paying attention to. You can give any economic calendar a look once a week and decide if you will need to pay attention to any news for that week.
Ciarelli Sees Apple’s ipad as `Opportunity’ for Amazon: Video
