Strategy Library·Advanced· 4 min

News volatility strategy

How to trade around FOMC, CPI, and NFP — or, more often, how NOT to.

The default rule

Most retail traders should stand aside for the release, then trade the FIRST clean structural setup after the dust settles (usually 5–15 minutes after).

Why

Spreads widen, liquidity disappears, and stops don't fill at your price. Even 'right' directional calls can lose because of execution.

If you must trade it

Trade smaller. Widen stops. Only take setups with a clean structural break, not the first spike. And know your maximum acceptable slippage.

Watch it on the chart

Chart breakdown

Chart of a CPI release with the initial spike and the clean 15-min-later setup marked.

Key takeaways

Default: don't trade the release itself.
The best trade often comes AFTER the reaction.
Cut size, not stops, if you must participate.
Slippage risk > analysis edge on releases.

Quick check

It's 8:30am ET, CPI just hit. Price is spiking 30 points in 5 seconds. Best action?

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