Filtering Out Noise How XAUBOT's Advanced News Filter by trading tools - XAUBOT

Filtering Out Noise How XAUBOT’s Advanced News Filter by trading tools

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One of the aspects of any trading strategy and especially automated trading tools are the technical indicators and in general the technical analysis that they can carry out. But another equally important aspect that is not seen with many trading tools and automated solutions is known as fundamental analysis. Of course in this case too XauBot Pro has also got this aspect covered with different features – the most important of which is called news filter

In this article we are going to focus a bit on fundamental analysis side of the equation in the world of forex trading. And we will also take a look at how XauBot Pro takes care of this type o analysis and what the news filter parameter can do for your trades as part of the automated trading in Forex.

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The Role of Fundamental Analysis in the Forex Market 

Before we discuss the particular feature of XauBot Pro with respect to fundamental analysis, which is known as news filter, let us first discuss the role of this form of analysis in the forex market. 

As you know, fundamental analysis is another major form of analysis next to technical analysis. While technical analysis tries to look at price movements to derive patterns and conclusions from them, fundamental analysis is a completely different form of analysis. 

In this form of analysis, the trader considers the impact of important economic factors on the market in question, which in this case is the foreign exchange market. Of course as you know no market stands alone and unaffected by the economy. 

So it is only natural that any financial market is impacted by the economy within which it is operating. Not just the economy within which it is operating, i.e. its local and domestic economy, but also the larger economy that exists in the world, i.e. the global economy. 

This is how economic factors play an important role in every single market. But what exactly are these factors that are impactful on financial markets such as the forex market? 

Well, these could include any regular piece of economic data that are published on a regular basis as well. For instance we have data such as the Growth Domestic Product in this category, as well as inflation and unemployment rate and other data. 

There are also other less regular pieces of data releases or economic news that can play an important role in the price movements that might occur subsequently following their release. These include important news releases such as the announcements related to interest rates and other potentially impactful announcements. 

Now the question that ought to be answered at this point is how do these factors even impact the financial market? Do they impact the market directly or indirectly? 

Well, this impact can be seen in both the direct and indirect ways. But most importantly, the way such factors impact the financial markets is by exerting the influence of the economy at large on the smaller scale of that particular market. 

So for instance, when the Growth Domestic Product of an economy increases, that is a strong sign that the economy of that country is working well and becoming stronger. As a result, the value of that economy’s currency could naturally increase and gain in value. This is because an economy’s currency is tightly related to the power and strength of that economy. So it is only natural that the value of that economy’s currency would be driven upward as the GDP of that country increases. The same is true with other economic factors that define the strength of the economy. 

Other factors can similarly impact the market and prices. For instance, the release of important economic news like the news about interest rates can cause fluctuations in the forex market. Such fluctuations can be used to the advantage of the trader and they can similarly result in their detriment. It is up to the trader to use the impact of such fluctuations that are caused by fundamental factors. 

Of course there are other ways that can help you manage this aspect of market analysis in the best way possible. For instance the news filter parameter of XauBot Pro. 

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News Filter and XauBot Pro’s Fundamental Analysis 

Now that we have an understanding of what fundamental analysis is, let’s take a look at this feature of XauBot Pro and how it helps traders to manage fundamental aspects of trading in the forex market. 

As we said in the beginning, there are multiple features that are related to fundamental analysis integrated into XauBot Pro. But one of the most important parameters is known as the news filter. 

So what does this news filter do? 

With the help of this feature you can set XauBot Pro to automatically halt trading during the periods in which important economic news are being released. This is because you want to stay away from the fluctuations that are the result of such news releases. Naturally, this is a more conservative approach to trading. 

On the other hand, you can also instruct XauBot Pro to keep trading during such periods of high volatility when important economic news are being released. This is because you want to be able to benefit from the volatility that is caused by these fundamental events. 

So this is one of the ways in which XauBot Pro has taken care of fundamental analysis for you and has given you the opportunity to control it through this news filter parameter. 

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In this article we discussed the role of fundamental analysis in financial markets, especially in the foreign exchange market or forex. We saw how important economic factors can impact the prices and cause price fluctuations. More importantly, we discussed the aspect of fundamental analysis that is integrated into XauBot Pro and one of the parameters of this intelligent and smart trading solution known as news filter and how it can help you manage the release of important economic news in the forex market. 

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