News filters: do you flatten before high-impact events?
A news filter is a strategy rule: no new positions X minutes before high-impact releases, or reduce size, or exit early. The filter converts unpredictable event risk into a knowable cost.
What's your filter?
- the events you filter around and the window
- whether you flatten or just avoid new entries
- how the filter changed your results
The economic calendar guide tells you which events deserve the filter.
Background: How to read an economic calendar: actual, forecast, previous and impact
The economic calendar tells you when markets are likely to move. Here is what each column means and how traders use it to plan the week.
What does forecast mean on an economic calendar?
The median expectation of economists surveyed before the release. Markets usually price in the forecast, so prices react to the gap between the actual figure and the forecast.
What is a high-impact event?
A release that has historically caused large price moves, such as central bank decisions, CPI inflation and the US jobs report. Spreads often widen around them.
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