Are you going to trade the Fed announcement?

Discussion in 'Trading' started by DisciplinedHedg, Jan 30, 2008.

Are you going to trade the Fed announcement?

Poll closed Jan 31, 2008.
  1. Yes.

    13 vote(s)
  2. No.

    7 vote(s)
  1. Are you going to go long/short for the Fed announcement?

    I'm not talking about positions that you have put on regardless of the Fed move, but instead are you specifically putting on new positions before the Fed decision?
  2. definitely. I will wait to see the intial reaction to the news and then I'm off and running. Some say they can predict the fed move consistently. I cannot and thats ok. Ive made plenty of money waiting for the action to unfold.
  3. I am as well. I place buy and sell orders well above or below the current price and just wait and see which one gets hits. I then trail if either one gets hit.
  4. Bracket trading, like you described, seems to be one of the better strategies to approach the fed with.

  5. If some of you guys are going long/short into the decision, what is your edge?
  6. The edge is a rocket move in either direction. If nothing happens, no harm no foul.
  7. For FOMC announcements and PayRoll Reports on first friday's...

    I lower my bar period time from 5 minutes to 1 minute...

    I wait till the first spike up or down then using 1 minute bars i go with the 1 minute trend...

    The volume is so huge at this early time just after the announcement that this short time period works well on these days... ...where you can get killed trading 5 min bars on days like this...

    The range of a 1 min bar one Fed days will sometimes surpass a 5 min bar range on other days... so why not scale down... anyway found it a lot easier and more profitable to get into intra day trends this way...

    later in day when the moves lessen in their intensity and volume decrease i move up to 3 minutes and then back to 5 minutes...

    this has helped quite a bit in trading the Fed Days...

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  8. That's not an "edge."