Learn Algorithmic Trading

Economic releases in trading

Now that we have a good grasp of what economic indicators are, how the economic releases are scheduled, and how they can be delivered electronically directly to trading servers, let's dive in and look at some possible edge trading strategies gain from economic indicator releases. There are a couple of different ways to use economic indicator releases in algorithmic trading, but we will explore the most common and most intuitive approach. Given the history of expected economic indicator values and actual releases similar to the format we saw before, it is possible to correlate the difference between expected and actual values with price movement that follows. Generally, there are two approaches. One capitalizes ...