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Cutting size before news instead of standing aside completely

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Amanhasnoname
Posts: 1506
Joined: Fri Oct 30, 2026 9:45 am

Cutting size before news instead of standing aside completely

Post by Amanhasnoname »

Some scalpers cannot stomach sitting out every release. Trading through with smaller size is a middle path, but it needs rules to be useful.

The reduction should reflect the likely slippage, not the normal stop. If the typical stop is 5 pips and news slippage could add 10, the size needs to fit a 15 pip loss, which often means a quarter or a third of the usual size.

Spread expansion matters too. A wider spread raises the cost of every entry, so the target must grow in proportion. A 3 pip target that works at a 0.5 spread is unrealistic at 3 pips of spread.

Time limits help. Positions entered near news should have a short maximum holding time, closed regardless of profit when the window ends.

Honest record-keeping tells whether it works. Separating news-window trades from the rest in a journal quickly shows if the strategy has an edge there or just adds noise and cost.

Is trading through news done with reduced size, or is it all or nothing?
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