Why You Need to Track the News for Trading  

Events of economic and geopolitical importance, and for that matter central banks, employment data, periodic inflation reports, and, most importantly, any reports that are outside of the norm are capable of causing a lot of straining price volatility. For a trader who maintains a funded account, monitoring the direct impact of these events on price action becomes almost inevitable.

MT5 provides an integrated economic calendar, though, with most traders, this information is utilized in a passive manner where traders receive notifications of events to make adjustments to their trades. However, this is where a visual news impact log is needed. By incorporating this feature into your MT5 routine, it is possible to track various events’ impacts on the market, detect certain market tendencies, learn about volatility, and refine your tactics grounded on real events.

What is a Visual News Impact Log?

As the name suggests, it is a log that marks news events on MT5 charts of specific trading instruments with appropriate visual elements. Such events may be critical economic releases such as Non-Farm Payrolls, CPI data, and interest rate declarations, as well as some political events like elections and the rise in conflicts.

The objective is to track the effect of certain events and their news releases on the market. Over the days, this log evolves into a personal market behavior archive that reveals the distinctive ways some currency pairs, commodities or indices respond to certain news.

Logging Your Activity In MetaTrader 5 And How To Set It Up

To create a visual news impact log in MetaTrader 5, you need to merge manual logging with automation and possibly with the help of custom scripts or indicators. First, be sure to enable the economic calendar in MT5. This will help you see scheduled releases as they happen.

Now you are able to start marking events in your charts manually. Traders have a tendency to use vertical lines, text labels, and custom indicators to mark the occurrence of major news events. Some expert advisors (EAs) and third-party indicators are tailored to monitor and mark these events, using economic calendars or sometimes, even parsing news feeds.

You can also use scripts to create visual markers at specific timestamps by importing historical news data in .CSV files. These methods allow you to automate data input marking your charts. For instance, you can set scripts to create lines of different colors for high, medium, and low impact news events. With this, you can easily gauge the importance of events at a glance.

Automated Indicators for News Impact Accrued Tracking

For those more technically inclined, you might want to create or look for an indicator that automatically logs certain news events and their corresponding impacts. Such indicators are capable of retrieving relevant information from economic news APIs to place symbols, hashtags, lines, or texts on Mt5 charts.

Some of the more advanced versions also calculate the change in volatility for certain periods before and after the news. This shows how much a currency pair moved during the event in comparison to the average volatility. This type of evaluation can assist traders operating on a funded account to improve their risk management strategies. For instance, a trader can observe that EUR/USD tends to increase by 50 pips after the ECB delivers its press statement. This would allow them to increase their stop losses or refrain from taking new trades during that time.

Advantages for Funded Account Traders

A funded account is generally offered by a proprietary trading company that gives capital to competent traders. Such accounts are accompanied by clearly defined risk limits, performance targets, and trading policies. Within these boundaries, the visual news impact log represents a decisive advantage.

First, it enforces discipline. Traders with funded accounts are unable to freely trade; they must stick to a plan. Since they often get punished for breaching their plans, traders are more disciplined and are less likely to breach their rules, especially during times of heightened volatility.  

Second, it enhances trade journal submissions. Many prop firms have the policy of making their traders submit trade review journals. Submitting annotated charts with news impact analysis strengthens the review process, thereby showcasing a systematic strategy to the prop firms.  

Lastly, it boosts confidence. Trading another person’s account adds to the volatility, making the trader sink into indecisiveness. Traders who have the capability of weathering out news are at an advantage and are less likely to panic during news releases.  

Revamping Methods and Tools Based on News Impact Data  

Your news impact log will roll out extensive benefits; however, with the log comes the responsibility of maximizing the log. If, for example, you are trading GBP/USD and you note volatility during the UK CPI, it’s better to not trade during the release.

On the other hand, if certain news items create the same response over time (such as the sustained moves that followed positive job reports), you can create breakout or momentum strategies that take advantage of these tendencies.  

You can also analyze correlations: do some commodities respond to Chinese economic news? Does the S&P 500 tend to dip after Fed speeches? These are opportunities you can identify as you consistently engage with your log, whether you are trading manually or with algorithms.  

Integrating the log with MetaTrader 5 capabilities  

Meta Trader5 has some features that can augment the value of a visual news impact log. These include minute, multiple chart views, as well as the running of Expert Advisors. Using MT5’s Strategy Tester, traders can backtest their news-based strategies to evaluate their profitability during specific news announcements.  

Traders can also save specific news-log configurations as templates, which they can apply to multiple charts with a single click. This is especially helpful for traders managing multiple instruments on a funded account, as they can ensure that their news-log annotations are uniform across all charts.

Another noteworthy aspect is the Alerts system on MT5. Alerts can be set for specific types of news. Some external voice alert or push alert features can be integrated into your news log system.  

Obstacles and Solutions  

There is the issue of time and effort spent staying on top of a visual news impact log. Some traders may consider adding notes to the charts during intense trading periods. Ultimately, the painstaking time investment is worth the effort.  

Earlier mentioned automation can relieve an immense amount of burden. There are MT5-compatible plugins that sync with economic calendars from Forex Factory or Investing.com. Effective logs can be set up with minimal manual effort through automation of data imports and visual tagging.  

Another point to note is that objectivity must be balanced to recover from bias. It is easy to get overwhelmed by recent news and place too much weight on it. Emotions skew the analysis, however, a visual log can combat such tendencies and eliminate subjectivity.

Conclusion: Developing An Enhanced Trading Routine  

The construction of a visual news impact log within MetaTrader 5 exe serves as an effective method of refining the trading strategy that a particular individual has chosen. It greatly improves your understanding of the intricacies of the market, improves your navigation during volatile market phases, and enhances your decision-making capabilities. This is vital, especially within the context of a funded account where volatility is a prevalent phenomenon and every pip and position holds immense weight.  

Transforming MT5 from a mere technical tool and elevating it into a holistic trading dashboard requires the integration of the aforementioned processes into your routine. With time, the visual documentation will serve as an invaluable asset when it comes to recognition of patterns, risk assessment, and strategic optimizations. As much as trading is an incredibly quantitative venture, the ability to make sense of the underlying narratives with the same accuracy is what distinguishes you as a trader.

Short selling is another name for short trading. It allows traders to make profits from falling cryptocurrency values. Instead of buying high and selling low, short traders will borrow and then sell an asset, to purchase it at a lower cost to pocket their difference. While short-term trading can be extremely profitable, it does require precise execution, constant market surveillance, and strict management of risk.

A trading bot can be extremely useful in these situations. Platforms like Coinrule let traders automate trading strategies for short-term trades, allowing them to execute faster, improve risk management, or make emotion-free decisions. This article explores five proven strategies for short trading and shows you how to implement these effectively with an automated tradingbot.

What is short-selling in Crypto?

Trading short in crypto is a way to profit from a falling cryptocurrency price. Here’s how it all works.

1. Borrowing the Asset – The trader borrows cryptocurrency (e.g. Bitcoins), from an exchange.
2. Sell at Current Market Price – The borrowed crypto is sold instantly at the current rate.
3. Wait for Price Drop- The trader is waiting for the asset price to drop.
4. Buyback at lower price – The trader purchases the same quantity of crypto at an even lower price.
5. Return the Borrowed Crypto The trader will return the borrowed crypto and keep the difference.

As crypto markets operate around the clock and are highly volatile automating short-term trades through a trading bot, such as Coinrule, helps traders implement strategies efficiently while avoiding constant manual monitoring.

Why use a trading bot to short trade?

Short trading is a high-risk activity that requires fast execution. An automated Trading Bot provides these benefits:

Bots can monitor and execute trades 24/7, even while you’re sleeping.
Faster Reaction Times – Bots can react to market fluctuations instantly. This ensures you never miss out on an opportunity.
Emotion-free Trading – Eliminates human blunders caused by fear and greed.
Customizable Strategies: Set specific rules and levels for short trades.
Risk Management – Bots automatically exit trading based on conditions predefined, minimizing losses.

Coinrule has five proven strategies to automate short trading.

1. Trend-Following short Strategy

It Works

Trend-following strategies are used to identify a downward trend and then short the asset. This is done for the asset’s momentum to continue down. The strategy relies heavily on technical indicators including:

• Moving Averages: (MA & EMA) If the MA for the short term (e.g. 9-day MA) crosses under the MA for the long term (e.g. 50-day MA), this indicates a downward trend.
• Lower Highs And Lower Lows- A consistent pattern of low highs and low lows confirms that a bearish tendency is underway.
• MACD – Moving Average Convergence and Divergence (MACD) – A bearish crossover (MACD line crossing under the signal line), strengthens downtrend signals.

Coinrule Automating

Set a Rule: “If Bitcoin price is below 50-day EMA & MACD shows a Bearish Crossover, execute a Short Trade.”
Stop-Loss/Take-Profit: Set the stop-loss level just above the last high. Take profit is at a defined support level.

You can short the market with this automated strategy without manually tracking price changes.

2. Breakout Shorts

It Works

This strategy involves shorting crypto assets when they break below a critical support level. It indicates further downtrend movement. The key indicators include

• Support levels – When an asset repeatedly bounces around a particular price but breaks down below it eventually, it is a sign of a breakdown.
• High Trading Volume – A large increase in volume at the time of the breakdown confirms that the move is on.
• Bollinger Bands: If the price breaks the lower band and falls further, it is a sign of potential further downward movement.

Coinrule is a great way to automate your business.

Set a Rule : “If Ethereum is below a support level major with an increased volume, then execute a Short Trade.”
Stop-loss-and-Take-Profit (SL&TP): Place a small stop-loss above the broken support, and take your profit at the following key price level.

Automating the strategy allows your bot to catch breakdowns instantly and without delay.

3. Range Trading Short Strategies

It Works

In a range-bound marketplace, prices fluctuate from resistance (upper limit to support) to lower limit. This strategy involves shorting near the resistance level and anticipating that the price will drop toward the support.

• Price Resistance – Determine a price that the asset is struggling to surpass.
• RSI signal (Relative Strength Index – Overbought) – If RSI exceeds 70, the asset is likely to reverse down if it is overbought.
• Volume Confirmation — Decreasing the buying volume near resistance reinforces the argument for a reverse.

Coinrule automating

Set a Rule: “If BTC reaches a level of resistance and RSI reaches 70, you should enter a trading short.”
Stop-loss & take-profit: Stop the loss at resistance and profit near the lower level of support.

This automated strategy ensures you take advantage of repeated price changes in a sideways market.

4. Mean Reversion Short Strategy

It Works

The idea behind mean reversion shorting stems from the belief that a rally that has become too extended will correct. Traders will short an asset if its price is rising too fast and far beyond its historic range.

• RSI Levels of Extreme Overbought Conditions – RSI values above 75 indicate extreme levels of overbought condition.
• Bollinger Bands Lower Band Touch – When the price reaches upper band, there is a good chance of a reversal.
• MACD Divergence (Bearish MACD Divergence) – A divergence to the downside of MACD signals a weakened rally.

Coinrule: automating with Coinrule

Set a Rule: “If RSI > 75 and the Price touches the Bollinger Band Upper, Execute a Short Trade.”
Stop-loss & take-profit: Set the stop-loss over the recent high, and the take-profit at the middle Bollinger Band.

Automation allows you to short over-extended rallies.

5. Scalping Short Trades

It Works

Scalping, also known as high-frequency trading, involves repeatedly shorting small changes in price. It involves quick entries, exits, and small profits.

• Short-term charts can be used to determine precise entry points.
• The VWAP (Volume Weighted Average price) is a measure of the average price for a volume.
• Order Book Analysis. Large Sell Walls indicate resistance levels.

Coinrule automating

Set a Rule: “If BTC Price spikes 1% higher than VWAP within 10 Minutes, enter a short trade.”
Stop-Loss&Take-Profit Set a tight take-profit and stop-loss to ensure rapid execution.

Automating scalping allows you to profit from rapid price fluctuations without having manually to place multiple trades.

Risk Management for Short Trading

Short trading involves substantial risks, including the liquidation of leveraged positions. To trade safely, consider:

Stop-loss order – automate exits to limit losses.
Avoid excessive leverage and reduce your risk exposure.
Diversify Trades – Do not concentrate all your capital in a single short position.
Monitoring Market News – Sudden bullish news can trigger short squeezes.

Coinrule Automated Trading Bot: Trade Smarter.

Manual trading, however, can lead to many missed opportunities as well as emotional mistakes. Coinrule’s automated trade bot will allow you to:

• Execute short-term trades immediately based on exact technical conditions.
• Eliminate your emotional bias and follow a proven trading system.
• Manage risk with automation that automates stop-loss, take-profit, and profit-taking.
• Trading 24/7 without manually monitoring market conditions.

How can you maximize your short-selling potential?
Try Coinrule Trading Bot today and gain an advantage in crypto markets.

With the continuous changes in the global economic environment, Bitcoin (BTC), as a representative asset of digital currencies, has recently experienced significant price fluctuations. From the historical high at its peak to the recent plunge, many investors and market analysts have begun to pay attention to this market full of potential and risk. In this highly volatile market, some people believe that this is an excellent opportunity to buy at the bottom, but there are also many people who are concerned about the risks. So, is the sharp drop in BTC price really a good opportunity to buy at the bottom? How should we view this price drop? This article will explore in detail the reasons for the sharp drop in BTC prices, market opportunities and risks, and how investors should respond.

1、 Analysis of the Reasons for BTC Price Collapse

Firstly, we need to understand the reasons behind the sharp drop in Bitcoin prices. The volatility of Bitcoin prices has always been high, and significant fluctuations in the short term are not uncommon. Behind the recent sharp drop in BTC prices, there may be several factors involved:

1. Changes in macroeconomic environment

The uncertainty of the global economy, interest rate hikes by central banks, and stock market volatility often have an impact on risky assets such as Bitcoin. Bitcoin, as a high-risk investment, is often influenced by these macroeconomic factors. For example, the US interest rate hike leading to a strengthening of the US dollar may cause investors to withdraw from the cryptocurrency market and shift towards safer assets, thereby triggering a decline in the price of Bitcoin.

2. Fluctuations in market sentiment

Investor sentiment also has a direct impact on the volatility of Bitcoin prices. The increasing uncertainty in the current market may lead some investors to sell Bitcoin driven by panic, which further exacerbates the price plunge.

3. Technical callback

Sometimes the sharp drop in the price of Bitcoin is not entirely due to external economic or market factors, but because the market has been in an excessive upward state for a long time, there is a certain technical foam. After a period of rapid rise, the market may enter a period of adjustment, and a price correction is a very normal phenomenon.

4. Increased regulatory pressure

The increasingly strict regulatory policies of governments around the world towards cryptocurrencies may also be one of the reasons for the decline in Bitcoin prices. Especially when some major economies introduce new cryptocurrency policies or strengthen regulation, the market may be greatly impacted.

2、 Market Opportunities Behind BTC’s Collapse

Despite the significant drop in BTC prices, there are still many investors in the market who see potential investment opportunities. Here are several market opportunities that may exist behind the BTC crash:

1. The arrival of the “bottom fishing” opportunity

In the context of a sharp drop in BTC prices, many investors who have held Bitcoin for a long time may choose to buy on dips, which could be a great opportunity for those with a long-term vision to ‘bargain hunt’. Buying Bitcoin at a low price may yield significant returns in the future when the market rebounds.

2. Market reshuffle and the rise of high-quality projects

The sharp drop in Bitcoin prices may lead to some projects and investors exiting the market, but it also provides opportunities for projects with core competitiveness. In times of market downturn, high-quality blockchain projects and technologies are expected to stand out and attract more investors’ attention.

3. Opportunities for institutional investors to enter

In the price fluctuations of the cryptocurrency market, many institutional investors focus on long-term growth potential. As the price drops, many institutions may see the value of Bitcoin undervalued and increase their investments. The inflow of institutional funds may drive the market to recover, further driving up prices.

4. Application innovation of decentralized finance (DeFi) and Web3

The sharp drop in Bitcoin prices may stimulate more innovation and exploration, especially in the application of decentralized finance (DeFi) and Web3. With the continuous advancement of technology, these emerging fields are expected to become important growth points for the next cryptocurrency market.

3、 Risk Warning: Bottom fishing should be cautious

Although the sharp decline of Bitcoin seems to provide an opportunity for “bottom fishing”, investors must be clearly aware of the risks involved. Bitcoin, as a highly volatile asset, its drastic price fluctuations imply significant investment risks. Here are several risks to be aware of:

1. Uncertainty in market sentiment

The market sentiment of Bitcoin is extremely unstable, and panic selling may trigger further price declines, even in the absence of obvious bearish conditions, leading to sustained declines. Therefore, investors need to remain vigilant and avoid overly optimistic expectations due to short-term market fluctuations.

2. Regulatory risk

The regulatory policies for cryptocurrencies in various countries are still unclear, and different regions may adopt different regulatory measures, which cannot be ignored in terms of the impact on the price of Bitcoin. If regulation is further strengthened globally, it may lead to greater pressure on the cryptocurrency market.

3. Market liquidity issues

Under extreme market conditions, market liquidity may encounter problems, and investors may not be able to trade at ideal prices when buying at the bottom, and may even suffer greater losses. Therefore, when conducting bulk trading, investors need to pay special attention to the liquidity situation of the market.

4、 How to deal with BTC price fluctuations?

Faced with the drastic fluctuations in BTC prices, investors need to have a rational and scientific investment strategy. Here are several effective response measures:

1. Diversify investments and reduce risks

Don’t concentrate all your funds on a single asset such as Bitcoin. You can choose to diversify your investments and reduce investment risks by allocating other digital currencies or traditional assets.

2. Balance between long-term investment and short-term trading

For long-term investors, they can ignore short-term price fluctuations and focus on the long-term value of Bitcoin. For short-term traders, it is necessary to constantly monitor market changes, adjust positions flexibly, and reduce risks.

3. Utilize stop loss strategy

In extreme market environments, stop loss is very necessary. Setting a reasonable stop loss point for oneself and timely stopping losses when the price drops sharply can avoid excessive losses.

5、 Conclusion: Finding Opportunities in Fluctuations

The sharp decline of Bitcoin is not only a manifestation of market risk, but also a possible investment opportunity. For investors, rational analysis of market dynamics and the development of suitable investment strategies are the best ways to cope with market fluctuations. Although the market is full of uncertainty, history tells us that mature investors are often able to see opportunities during low periods and avoid risks during high periods. We can remain optimistic about the future trend of Bitcoin prices, but we also need to do sufficient risk management to avoid blindly following the trend and excessive speculation.