Been trading EUR/USD and GBP/USD pairs for months with decent success using my usual scalping approach.
Jackson Hole meeting coming up, and I’m wondering if I should adjust my position sizes or switch to longer timeframes during the event.
What changes do you make to your strategies around these Fed meetings?
Jackson Hole creates wild swings that last hours - totally wrong for scalping. Learned that in 2019 when Powell went dovish and EUR/USD shot up 150 pips in one go.
Now I close all scalp positions an hour before and wait 30 minutes after to see where things settle.
First reactions are usually fake. Price rockets one way then completely reverses. I’d rather miss the initial move and catch the real trend.
GBP/USD gets crazy volatile during Fed events since it reacts to both dollar moves and risk sentiment.
I switch to 4H charts during Jackson Hole. Daily moves are way too big for scalping.
I cut my position sizes in half before Jackson Hole. The volatility’s insane and can wipe out weeks of profits in minutes.
Stick to your usual pairs but skip scalping right after Powell speaks.
Stop trading an hour before Powell speaks and stay out until things calm down. Jackson Hole destroys scalpers. Spreads blow out and liquidity vanishes when volatility hits. I’ve watched EUR/USD rocket 200 pips in 15 minutes then completely reverse. Your usual signals don’t work in that mess. Wait for clear direction after the initial chaos passes. The real moves come 2-4 hours later when the algos take control.
Jackson Hole can really disrupt scalping setups because of the sudden spikes in volatility. I usually reduce my position sizes a few days before and stick to my normal timeframes, but I do use tighter stops.
Changing your entire strategy for an event rarely works out and can lead to more stress than it’s worth.
Just skip Jackson Hole completely. Come back tomorrow instead.