BlogOctober 6, 2022Michael Covel

“Should I be avoiding high-impact news events when trading…”

Feedback in:

Hi Michael. How are you? I’ve got a question I am hoping you can help me please. With a trend following system, should I be avoiding high-impact news events when trading, or trade through the news events? Thank you very much. T. M.

You don’t currently have a trend following system? Your question leaves you at the mercy of whatever forever.

I have a trend following system but it avoids major news events. I am interested in your opinion on whether to keep avoiding the high-impact news events or trade through them.

How do you have a trend following system that avoids major news events? I don’t think we have the same definition of trend following and that’s important to communicate.

So do you advise that I trade through major news events? (Just thought that I would be whipsawed out due to potential price manipulation)

You are not a trend following trader if you think you are going to selectively try to avoid high-impact news events. This desire of yours will require a crystal ball.

Note: Trend followers can’t avoid whipsaws:

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