Both systems are used in news trading, but this completes their similarity. If the first one is a simple array of orders with the 50/50 winning chance, then the second is an exact mathematical model with the 98% winning chance. We'll figure out who of them is who.
Straddle Trade
It uses two opposite pending orders, set before the news. Orders are set with the hope that one of them will be opened at the time of publication of the news. The logic of the work is based only on probable, possible, volatility (and it would be better if it is stronger).
Benefits:
- Ease of actions
- “Text” news trading
Disadvantages:
- Volatility is not always strong. There is a high probability that the order will be opened, but the price will go in the opposite direction to the stop-loss.
- Blocking the work of advisors at the time of news release by brokers (total blocking, raising stop level, etc). The unacceptability of the work of experts in certain trading moments.
- Straddle does not work with the main point: with the reason why there are strong movements. Due to this, the risk of such trade is high enough, and the chances of winning are only 50/50.
- Slippage of placed orders, and taking into account that the system does not take into account the deviation of the fact of news from its forecast; it can become even more dangerous because after slippage the movement could not continue.
Forex Autoclick
It uses the deviation of the fact of the news from its forecast as the root cause of occurrence of the movement. It works with the cause of occurrence of the price movement, so the signal to act occurs "before" and "towards" the market reaction. Complex software, consisting of two parts - server and client, is used. The server part receives data directly from news providers.
Disadvantages:
- Since the autoclick brings a profit with an accuracy of 98 of 100, brokers can try to block the work at the time of news release by queries “No prices”, “Wrong prices” or provide slippage.
- The frequency of signals depends only on the errors of forecasts of economists, on the basis of surveys of which official forecasts are created.
Benefits:
- The trading signal is always towards the market reaction even before it occurs.
- Autoclick is not an Expert Advisor, and all transactions for a broker are manual trading.
- The ability to choose the degree of market reaction before it occurs (the larger the trigger /the deviation of the fact of the news from its forecast, the stronger the expected movement of the trading instrument), which makes it possible to use ECN and STP at strong releases in trading.
- For trading, a strictly mathematical-logical system is used.
- It does not take much time before the monitor, which makes the strategy the best for an additional method of work.
CONCLUSIONS ARE FOLLOWING
Straddle uses the scheme of entering the market “at random” with a 50%/50% probability (taking into account the looting of orders).
If you just download an Expert Adviser and use it without practice and skill, the system will not make a profit, and it becomes dangerous for your deposit. You need a clear control of the market situation, an understanding of the basics of fundamental analysis, the relevance of the particular indicator in the current economic cycle. We've seen a lot of well-known bloggers who have been lost due to the inefficient use of forks (besides, they try to transfer their “experience” to the rest of the traders).
The autoclick uses the logic-mathematical method in assessing the deviation of the fact of news from its forecast, which in turn is the primary cause of the reaction in the market. Thus, the work accuracy is increased up to 98%. The autoclick does not use advisors and is a specific software. Due to the control of the server by our specialists, it requires minimal skills and time from traders. It is the best additional strategy, which increases the possibility of additional earnings.