There was a big announcement today when the next president of the USA was voted in and in anticipation I decided to not trade forex manually or automated due to the potential impact across the forex market and also due to the fact brokers were reducing leverage and margin requirements. I hope you forex traders did the same! Just like NFP day trading, it is best to avoid trading forex when there is a major news release. Even if you are a news trader, the spreads and account requirements can make it a very difficult and not that rewarding task. Sometimes it is better to be safe than sorry!
The good news is that the multiple forex robots running on trading accounts that you can see on my forex robot tests page were not negatively affected and in fact done very well throughout the US election – the ones that were left running that is. Some have news filters built in and some were purposely deactivated but it is a relief to see them all survive well during such a big news event that can sometimes cause a very negative impact on forex trading systems both manually and automated.
I would still always recommend NOT trading the forex market around major news releases as it can get messy and most traders will not have the required leverage/margin for it to be beneficial. Then there are the high spreads during the news that make it even harder to profit during these times. That being said, it is not always bad to trade during the news as I have seen news release cause big market movements in favor of the trader. It does require a lot of trading discipline and confidence as well as a detailed fundamental analysis in preparation for how and where the news being released will move the market.