News Big Movement EA – A Comprehensive Review
News Big Movement EA is a partially automated news trading expert advisor designed for MetaTrader 4. It aims to capitalize on high-impact news events to generate profits in the forex market. In this comprehensive review, we will take an in-depth look at how this EA works, its features, strengths and weaknesses, and assess its overall performance and profitability.
How The News Big Movement EA Works
The core strategy of the News Big Movement EA revolves around trading the news. It does not rely on any technical indicators, instead simply utilizing high impact news events to trigger trades.
The logic is straightforward – after major economic announcements are released, forex prices tend to fluctuate rapidly depending on the implications of the news. For instance, positive job figures may lead to a surge in the US dollar as it signals a strong economy. Conversely, poor GDP data may cause a currency to decline versus its peers.
By placing pending buy and sell stop orders before a news release, the EA aims to capitalize on the sudden price movements in either direction once the news hits the market. The entry points are set at a predefined distance from the current market price, with stop loss and take profit levels configured to capture a potential swing while limiting downside risk.
The EA allows traders to specify the date and time of upcoming news they want to trade. It will then automatically place the pending orders shortly before the scheduled announcement, without needing any ongoing input or intervention from the user.
Features of the News Big Movement EA
The News Big Movement EA comes equipped with several useful features and customization options:
- News Filter – Ability to filter news by impact level (high, medium, low) to focus only on significant events.
- Pending Order Placement – Enter distance from current price to set pending buy/sell stops before news release.
- Stop Loss and Take Profit – Configure stop loss and take profit levels for optimal risk management.
- Trade Management – Features like break-even, trailing stop loss, and partial close can secure profits and reduce risk.
- Martingale – Option to enable martingale to recover losing trades. Should be used with caution.
- Multiple Pairs – Can trade news simultaneously across multiple currency pairs.
- Stealth Mode – Hide take profit and stop loss levels from the broker.
These features allow traders to have more control and customize the EA’s trading approach to suit their preferences. The EA can also run unattended once configured correctly.
Strengths of Trading with the News Big Movement EA
The News Big Movement EA provides some potential advantages for traders looking to capitalize on news events:
- Requires no technical analysis or indicators – simplifies trading process.
- Scheduled nature of news allows pre-planning trades around major events.
- Sudden volatility from news can lead to large profitable price swings.
- Trades multiple currency pairs to diversify exposure.
- Customizable parameters provide flexibility in managing trades.
- Automated trading reduces emotional interference during volatile news periods.
The biggest strength is the EA’s ability to generate sizeable profits from short-term volatility spikes around high impact news. For traders comfortable with the risks of trading news, it can be an effective approach.
Weaknesses and Drawbacks of the News Big Movement EA
However, the News Big Movement EA also comes with some weaknesses to keep in mind:
- Over-reliance on news trading carries inherent risks due to unpredictable market reactions.
- Potential for large drawdowns if news response moves against trade direction.
- Requires constant availability to monitor news and markets around scheduled events.
- Not suitable for all account sizes or trading styles and timeframes.
- Lack of technical analysis leaves EA exposed to broader market sentiment.
- Spikes in volatility can lead to slippage and execution issues.
The highly volatile nature of news trading poses significant risks. The market response is not always logical or predictable. This can lead to losing streaks and deep drawdowns if trades repeatedly move in the wrong direction after news releases.
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Real User Reviews and Ratings
The News Big Movement EA currently scores 6.8/10 based on 23 reviews on ForexPeaceArmy, a leading forex review site. Positive reviews praise its profitability during volatile news events, while complaints mention the risks involved.
On the MQL5 marketplace, it scores 3.6/5 based on 9 reviews. Positive reviews highlight its quick profits from news spikes. Negative reviews complain about optimization for specific pairs and unpredictable performance.
The mixed reviews reflect the polarized nature of this EA – it can generate big wins but also heavy losses trading news. Individual results vary greatly based on usage, risk management and market conditions. Caution is warranted.
Verified Performance Results
According to the vendor’s website, backtests show a profit of $20,000 from an $8,500 account in 2 months trading the EUR/USD and GBP/USD around high impact news events. However, backtests do not represent real trading conditions.
MyFXBook data shows a 2-year verified live track record on a real $5,000 account trading multiple pairs. It shows a solid 63% gain despite a 34% drawdown, demonstrating the potential but also risks with this strategy.
Overall, the live performance results indicate the News Big Movement EA can be profitable but requires good risk management to limit drawdowns inherent in news trading. As always, past results do not guarantee future performance.
Pricing and Availability
The News Big Movement EA is sold through the FXLoaded website for a one-time fee of $1,980. This includes unlimited use on any number of accounts and pairs.
There is also a 20% recurring commission on net profits to the vendor. This rather high commission structure offsets some of the profit potential.
Some unauthorized versions are shared on forex forums and Telegram channels for free, but use these at your own risk as they may contain malicious code or differ from the original.
In summary, the News Big Movement EA provides a unique approach to trading volatile news events in the forex market. For traders comfortable with the higher risks, its ability to generate quick profits from news volatility is a major advantage.
However, the unpredictable nature of news trading poses significant risks of losses. Careful usage, risk management and safeguards against execution issues are essential to long-term success. The EA may not be suitable for all account sizes and trading styles.
The News Big Movement EA scores 6.5/10 overall – it can clearly be profitable around major news events but also suffers periods of large drawdowns. As with any EA, extensive backtesting and demo testing is recommended before using it with real capital to fully understand its performance across different market conditions.