Intelligent buy stops and short stops can be priceless for such events. Oops did I say that out loud..... Anek
True, Usually, I'll put bids and offers out all over the place on the usual suspects... way out of the NBBO. I get hit sometimes for a quick snap... sometimes.
I guess I'm a fool but I always trade the announcement. I don't predict what the market will do, but I do have orders above and below the last pivot point. Some of my best trades have come on fed days.
the smart approach is to stay out before a major announcement, fed and even other economic reports, so its a matter how much you like your money.. its all subjective, but i will stay out. otherwise its gambling, i rather go to the casino for that , then again some traders love the thrill, then more power to those that can afford the risk involved.