FOMC Trading Strategy: Pre-Meeting Positioning and Post-Meeting Execution

Trading FOMC is a skill that requires a completely different approach from regular technical trading. Here's my complete FOMC framework: **Week before FOMC:** Reduce all USD-correlated positions by 50%. Study the dots from the previous meeting and watch Fedspeak for hints. **Day before FOMC:** Flatten most USD exposure. If you have conviction trades, move stops to breakeven. **Statement release (2:00 PM EST):** Do NOT trade the first 30 seconds. The algo reaction can spike 100+ pips in one direction, then fully reverse. **Waiting for clarity (2:00–2:30 PM EST):** Read the key sentence changes vs prior statement. Wait for the initial overreaction to be faded. **Post-press conference (3:30–4:30 PM EST):** Powell's Q&A often provides the final directional clarity. Many of the best FOMC trades execute here. Entry: After first 30-min reversal Stop: Beyond the initial spike extreme Target: Previous day's high/low Do you trade the statement release directly or wait for the press conference?