Trade The News - Profit from trading with short-delayed news feeds
Experienced traders recognize the effects of global change on foreign exchange (Forex / FX) markets, stock markets, and futures markets. Factors such as interest rate decisions, inflation, retail sales, unemployment, industrial production, consumer confidence surveys, business sentiment surveys, trade balance, and manufacturing surveys all affect currency movement. Although traders can manually monitor this information using traditional transparansmm news sources, automated or algorithmic trading low-latency news feeds is a more predictable and efficient trading method that can increase profits Reduces risk.
The faster a trader can get economic news, analyze data, make decisions, apply risk management patterns and implement trades, the more profitable he can be. Automated traders are generally more successful than manual traders because automation will use a tried-and-true trading strategy that employs money management and risk management techniques. The system will act on trends, analyze data, and trade faster than humans without emotion. To take advantage of short-delayed news feeds, it is essential to ensure that news sources provide the fastest possible delays to defeat the competition. In addition, it is necessary to have the right business strategy and network infrastructure—order entries and filling or hanging.
How do low-delay news feeds work?
Short-delayed news feeds provide critical economic data to sophisticated market participants for whom speed is a top priority. While the whole world receives financial information through news websites like shared news feeds, bureau services or mass media, radio, or television, low latency news traders rely on the fast economic supply of electricity. These include job statistics, inflation data, manufacturing indexes, a machine-readable feed directly from the Bureau of Labor Statistics, the Commerce Department, and the Treasury Press Room, suitable for algorithm traders.
One way to control the release of news is to ban it. After the ban on the news event was lifted, reporters entered the released data in electronic form, which is immediately distributed in proprietary binary form. This data is sent through private networks to various distribution points near different major cities of the world. To get news data as quickly as possible, a merchant needs to use a low-latency news provider that has invested heavily in technology infrastructure. A source requests the attached data not to publish before a specific date and time or unless certain conditions are met. Modern notices are given to the media to prepare for the release.
News agencies also have reporters in sealed Government press rooms during the lockup period. Lockup data periods easily control the release of all news data so that every news outlet releases it simultaneously. This can be done in two ways: "Finger push" and "Switch Release" are used to manage the release.
Newsfeeds feature economic and corporate news that affect business activity around the world. Economic indicators are used to facilitate business decisions. This news is fed into an algorithm that analyzes, analyzes, and analyzes business proposals based on the information. Algorithms can filter the report, generate signals, and help traders make different decisions to avoid significant losses.
Automated software trading programs enable faster trading decisions. As a result, decisions made in microseconds can be a significant part of the market.
News is a good sign of market fluctuations, and if you trade this news, opportunities will present themselves. Traders are more influential when a news story is released, and they react when there is very little news. Machine-readable news provides historical data through archived documents that enable traders to monitor price movements against specific economic indicators.
Each country publishes important economic news during certain times of the day. Top advertisers analyze and execute trades almost instantly when an announcement is made. Quick Analytics is made possible by automated trading with fewer commercial news feeds. Automated trading can play a part in a trader's risk management and loss prevention strategy. With automated trading, historical backtests and algorithms are used to select the maximum entry and exit routes.
Traders need to know when to monitor the market. For example, in the United States, important economic data is released between 8:30 a.m. and 10:00 a.m. EST. Canada releases information from 7 a.m. to 8:30 p.m. Since currencies are spread all over the world, traders can always find such a market.
An example of a critical economic indicator
Consumer Price Index
Employment cost index
Employment situation
Producer Price Index
Production and cost
Real income
US import and export prices
Employment and unemployment
Where do you keep your servers? Important geographical locations for algorithmic trading strategies
Most investors who trade on the news want to host their algorithmic trading platform with resources and as much execution space as possible. Common distribution locations for low-delay newsfeed providers globally include New York, Washington DC, Chicago, and London.
Ideal locations for having your server are in well-connected data centers that allow you to connect your network or server directly to the feed source and execution venue. There should be a balance between distance and pause. However, you need to be close to the news to follow the release, approach the broker, or discuss so that your order can be made public.
Short delay news feed provider
Thomson Reuters uses state-of-the-art technology to create news feeds in a short time. Newsfeed is specially designed for applications and is machine-readable. In addition, the streaming XML broadcast generates full text and metadata to ensure that investors never miss an event.
Another Thomson Reuters news feed covers economic events, natural disasters, and violence in the country. News analysis released. When the category reaches a certain level, the investor's trade and risk management system is notified to trigger an entry or exit from the market. Thomson Reuters has a unique position in global news, compared to other providers being included in the world's most reputable business news agencies if they are not respected outside the United States. They have the advantage of adding global Reuters news to their feed in addition to third-party newswires and economic data for both the United States and Europe. The University of Michigan Survey of Consumers report is another essential piece of news and releases data twice a month. Thomson Reuters has exclusive media rights to data from the University of Michigan.
Other lesser news providers include: News, Dow Jones News, and Rapidata need to know which we will discuss further as they make more information about their services available.
Examples of news affecting markets
A news feed can signal a change in the unemployment rate. For the sake of the scenario, there will be a positive change in the unemployment rate. Historical analysis can show that difference is not due to weather effects. Newsfeeds deliver lower purchases are boosting consumer confidence. Reports strongly indicate that the unemployment rate will remain low.
With this information, the analysis could indicate that traders should devalue the US dollar. Then, the algorithm can determine which USD / JPY pair will make the most profit. Finally, an automated trade will be applied when the target is met, and the work will be on auto-pilot until completion.
The dollar continues to depreciate despite reports of improved unemployment provided by NewsFed. Investors should keep in mind that several factors affect the movement of the US dollar. Unemployment may fall, but the economy as a whole may not improve. If big investors do not change their minds about the dollar, then the dollar may continue to depreciate.
Big players will usually make their decisions before most retailers or small businesses. Big players' decisions can unexpectedly affect the market. If the decision is based solely on information from unemployment, the assumption would be wrong. Non-directional bias assumes that any big news about a country will create a trade opportunity—accounts for all possible economic indicators of difficult bias trading, including responses from significant market players.
News - Bottom line trading
News moves markets, and you can take advantage if you trade information. Very few of us can argue against this fact. There is no doubt that a trader who receives pre-curve news data has the edge to acquire solid short-term trades for fast trading in various markets, be they FX, equity, or futures. In addition, the cost of low-latency infrastructure has decreased over the years, making it possible to subscribe to low-latency news feeds and receive data from sources such as television, the Internet, radio, or standard news feeds. Beneficial to viewers. In a market driven by large companies and hedge funds, short-delayed information feeds certainly provide a great company acquisition even for individual traders.
Joban Pageman, a founder of FCM 360, is an industry leader in facilitating financial services technology. The mission of FCM360 Financial Companies specializes in establishing high-performance IT infrastructures for communication in key exchange markets. Learn more about FCM360's low latency services.