Cutting size before news instead of standing aside completely
Posted: Sat Oct 31, 2026 6:35 am
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?
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?