Great Forex traders are somewhat akin to great risk managers. This is basically true in all financial markets, XAUBOT Pro. Those investors and traders stay afloat under any condition who are able to manage the risks associated with their financial activity in the best way possible.
When it comes to managing risk in the forex market, there are so many different pathways to take that seem rather endless and innumerable. In this article, we are going to focus on one of these pathways that in particular is usually overlooked by many forex traders.
We are of course talking about the impact of news on the forex market. But not just any news. To be more precise, we shall focus on high impact news in particular. So let’s see how XauBot Pro can help you manage the risks associated with high impact news in the forex market.
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XauBot Pro’s Approach to News Management
The method by which XauBot Pro handles the impact of news in the forex market is quite varied and done in different ways. The overall suite is the AI based fundamental tools that are offered by this expert advisor.
As part of the fundamental tools you can get fundamental analysis and management with XauBot Pro. These include various tools and features that take into account the impact and significance of fundamental factors on the forex market. These include the news filter and the holiday filter.
The news filter itself is seen through different features and parameters that allow traders to manage the impact and blow of different types of news on the process of automated trading in the forex market.
You get to choose to activate this feature and utilize the news management feature of XauBot Pro. As part of these tools you get the filter for medium impact news and also high impact news.
This way XauBot Pro has divided the fundamental factors that can potentially impact the forex market into two distinct classes of news releases. One of them with a lower degree of impact and the other with a heavier punch, so to speak.
Of course, as we said, the focus of this article is going to be the management of the influence and effect that high impact news has on the forex market. But before we specifically discuss that aspect of XauBot Pro’s handling of news events, there is another feature that is certainly worthy of a mention.
This feature of the fundamental tools of XauBot Pro is the way you can represent news. This parameter is known as display lines.
Display lines will allow you to transpose lines on the trading chart. These charts are news charts and so you can actually see news events and fundamental factors right on the trading chart.
There are also other options that let you adjust and change these display lines with respect to size and color.
Now let’s turn to the way XauBot Pro handles high impact news and the policies it has for before their release.
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How to Handle High Impact News with XauBot Pro?
Now that we have divided news events into two classes based on the tools offered by XauBot Pro, i.e. the two group of medium impact news and high impact news, it is time to see how XauBot Pro can manage the risks associated with high impact news.
In general, there are two approaches that XauBot Pro has with respect to the policies of managing high impact news.
One approach has to do with stopping trading before the release of high impact news. And the other one has to do with stopping trading after the release of high impact news.
In both cases, the user has the choice to define for the expert advisor the number of minutes during which he or she wants the expert advisor not to trade in the forex market whenever a high impact news event is to be released.
Of course the particular policy that we have under the scope of our analysis is to stop trading prior to the release of high impact news. The reason it is especially important to stop trading before the release of such news is that whenever there is this type of news impending, then there are a lot of speculations among traders.
All of these speculations lead to uncertainty among them as to the impact of the news. So when the news has not been released yet, traders will keep speculating as to what it will do to the market. This is why the conditions in the market become too shaky and unreliable for trading.
And this is exactly why the stop trading before high impact news policies of XauBot Pro are important and extremely helpful.
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What Is the Best Strategy to Trade High Impact News?
When it comes to news in the forex market and what to do about it, there are two main approaches among traders. Some traders choose to capitalize on the volatility that is caused by the release of the news and try to make profits from the quick and unexpected changes.
Naturally, this is very risky and could easily lead to losses.
So perhaps the better approach would be to sit it out completely and wait for things to calm down in the market so that the conditions are more reliable for trading.
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Conclusion
In this article we discussed the notion of news and fundamental factors and what they can do to the foreign exchange market. We also discussed the importance of managing risks that are associated with such type of news. In particular we saw how XauBot Pro and its particular policies can manage risks that occur before high impact news.
