Each drop or “High Drawdown” in this chart is a result of high impact news as detailed below:
17 June 2020, EUR High Impact News on EURUSD
22 July 2020, EUR High Impact News on EURUSD
07 August 2020, EUR High Impact News on EURUSD
28 August 2020, EUR High Impact News on EURUSD
As you can see, Medium to High Impact News can be a high threat to your capital and very likely to result in high Drawdown or Margin Call by your Broker.
It is advisable to switch on this option in the Investment Castle EA and set it the EA to stop trading hours before the Medium and High Impact News.
Although the Investment Castle EA can deal with any situation, however, the Forex market is unpredictable and I will be lying if I would say that all cases are covered
Set file used in this backtest was archived due to further development to ICEA.
After loading this set file on the live chart, navigate to the News settings and set it to “true” then set the time to 6 hours or more.
Detailed guide on how to control this option can be found here.
Remember: Risk of losing your capital is always there.
Now, since there is no way to backtest the News option in MT4 or MT5, I tried to disable trading during the London Session by following this guide:
Just to simulate the trading without passing by the Medium and High Impact News and the results are promising!
Trading in All Sessions Except London Session - Simulation of Trading without medium and high impact news
And, the Drawdown on 14 April 2020 was due to Medium impact news on USD, which will be considered when the EA switches off automatically before the news.
Watch the EA in action: