Implementing Stop Trading Before High-Impact News in XAUBOT Pro 

When you want to make a decision in the forex market you need to weigh the different factors that are involved by XAUBOT Pro and could potentially define the outcome of your soon to be decision. Among these factors we can most readily refer to the price movements that are taking place at any given moment. 

But beyond your trading chart and the technical analysis that you are carrying out, there are other external factors that also impact the forex market. These external factors are the news events that are released and are somehow tied to the forex market, which means they can impact price movements. 

But now all news events carry the same punch! Some of them are quite stronger than others. These are known as high impact news. In this article we are going to take a look at the impact of these high impact news events on the forex market and we will also see how XauBot Pro can handle them. 

Take a look: Limiting Drawdowns, Maximizing Profits, XauBot’s Money Management and automated trading Techniques 

What Is the Impact of News on the Forex Market? 

In order to discuss high impact news and its influence on the forex market, we first must discuss the impact of news in general on the forex market. The question has to be asked: what is the relationship between news and the forex market in the first place? 

You might be wondering why all the fuss about fundamental analysis and all the talk about the impact of news events on the forex market. And you would be right to wonder, because perhaps fewer markets are quite as deeply impacted by news events as the forex market is. 

But why? 

The reason can be found in the nature of the market itself. The forex or foreign exchange market is the largest financial market in the world. Its monthly traded volume is more than the GDP of most countries in the world. That should be able to give you an idea of just how big the forex market is. 

So when a financial market is as big as the forex market is, then it is only natural to think that it is impacted by a multitude of factors that are both internal and external. And of course this is true in the case of the forex market. Not only is it being pulled from the inside by internal factors, it is also being impacted by outside factors that impact the economy at large. 

These external factors are most readily seen in the form of news events that are published and are somehow tied to the forex market. This means any financial market that can impact the economy will invariably impact the forex market as well. We will discuss some of these factors in the next section so that you can find out better what news events impact the market, especially to a high degree. 

But before we go to the next section, it is important to note that not just financial news impacts the market. In fact, all geopolitical news that has a potential to impact the economy will also impact the forex market. 

Take a look: Money Management with XauBot AI Pro Advanced Strategies Revealed 

What Exactly Are High Impact News Events? 

Now that you have a grasp on why news events impact the forex market in the first place, it is important to see what types of news events are out there and which ones can be considered as high impact. 

There are basically three classes of news events that can potentially be regarded as high impact: 

1. Economic news: this class of news are those that are directly related to each economy. There are of course so many different news events that are released all the time about the economy. So among all these different news bulletins and news releases, which ones are regarded as high impact? Well, as the name suggests, those news events have a high impact that are highly important themselves. For instance, for any given economy, Growth Domestic Product or GDP is clearly a high impact news, in addition to inflation and unemployment rates, among others. 
2. Important geopolitical events: as we discussed briefly in the last section, other than financial news, major geopolitical events can also impact the forex market. These include any important election in the world, such as the US presidential election, or any news related to major conflicts that could potentially disrupt the global supply chain or the supply of important commodities such as oil. 
3. Last but not least we have major announcements by important central banks. One prominent example can be the announcements made by the US central bank, otherwise known as the Federal Reserve, about their national interest rates. 

Take a look: Role of Money Flow Limits in Market Analysis in XAUBOT Pro

How Does XauBot Pro Handle High Impact News? 

So far we discussed the role of news events in the forex market in general and we also discussed some examples of high impact news events. Now it is time to see how XauBot Pro can handle such high impact news in its process of automated trading in the forex market. 

There are two parameters integrated into XauBot Pro that are specifically put in place for high impact news. One of them is called Stop Trading Before High Impact News and the other is called Stop Trading After High Impact News. As the names suggest, these two parameters will give you the chance to halt the trading operations of the expert advisor before and after the release of high impact news. So you can set a number of minutes, such as 90 minutes, so that the EA will refrain from trading 90 minutes before and after the release of high impact news in order to avoid the unnecessary volatility in that period. 

Take a look: Significance of Money Flow Limits in Trading in XAUBOT Pro 

Conclusion 

In this article we took a closer look at some examples of high impact news that could potentially impact the forex market. In addition, the role of news in the forex market was also discussed. To address the uncertainty associated with the release of high impact news, we looked at two parameters in XauBot Pro that are developed specially for high impact news.