News Breakout Straddle Using Opposing Market Orders

Summary

The script opens a buy and a sell market order shortly before a news release, aiming to capture a sharp move in whichever direction price breaks. The proposed setup uses stop losses so that an adverse move can close the losing side while the surviving position may continue toward its take-profit level. The inputs include trade size, stop-loss and take-profit distances, and retry count.

This is an illustrative tactic, not a reliable outcome: the document explicitly cautions that the expected breakout behavior does not always occur. It provides no backtest, event-specific evidence, or discussion of spread, slippage, or the cost of holding two positions. The script is said to support ECN accounts that require stops to be placed separately from the initial order request.

Key ideas

• The script opens opposing market positions ahead of a news release to target a directional breakout.
• A stop loss is intended to limit the losing side while the other position may remain open for gains.
• Trade size, stop distance, take-profit distance, and retry count are configurable inputs.
• The tactic is only illustrative and is not guaranteed to profit when news arrives.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.