Trading the RBA Rate announcement.
I saw Mike's opinion on the Aussie rate announcement and it was fine. I agree there was a limit it can rise if they hike the interest rate another 0.25%, because i learned my lesson about this news if they halt the interest rate and the slippage that could cause in February RBA announcement trade.
Therefore, i came out with another plan. Which is to enter prior to the announcement, with a Sell Stop and a Buy Stop - which is to 'go with the flow'. Although like DT mentioned, it's gambling (trading before news), but i find the odds are fine (not great though) but i have to monitor the position closely because disaster are still bound to happen when you trade, let alone gamble.
I transacted my stops 5 minutes before the announcement. Price was hovering around 0.9175 to 0.9185. Here are my transactions:
Sell stop: 0.9150 (x5 size)
s/l : 0.9170 t/p: 0.9100
Buy stop: 0.9200 (x3 size)
s/l : 0.9180 t/p: 0.9250
Both 50 points profit and 20 points stop-loss and both entry are 25 pips away from current price. Indeed, rates hiked. My buy stop entry was hit immediately, and like the usual NFP movement (up and down vigorously) i remained where i was, i canceled my sell stop transaction and entered another x2 size long on pullback.
Closed both position on a 15M high and 20 minutes after the announcement, price has made another 10 pips+ higher. That was it for my day.