Strategies for Trading during Major Economic Events

Trading around major economic events can be both highly rewarding and extremely risky. When news such as interest rate changes, inflation data, or employment figures are released, markets can shift rapidly within seconds. These moments offer incredible trading opportunities, but without a solid strategy, traders may face significant losses. That’s why having a well-thought-out approach is essential—especially for beginners or part-time traders looking to grow with the help of automated systems like SMARTT.

SMARTT, our AI-driven trading robot, now operates across multiple markets including Forex, cryptocurrencies, and other global assets. By monitoring over 200 top traders and integrating both technical and fundamental analysis, SMARTT helps reduce the complexity and risk involved in trading during volatile economic events.

 Understanding the Impact of Economic Events on Markets

Major economic events are announcements that influence a country’s financial stability and global investor sentiment. These include central bank decisions (such as interest rate changes), GDP reports, employment data, and inflation indicators. Their outcomes can shift currency values, crypto assets, and even commodities within moments. Traders who can interpret these events correctly often benefit from sharp price movements, but those unprepared may experience heavy losses.

 Why You Need a Specific Strategy for News Trading

Market volatility increases dramatically during economic events. Spreads widen, slippage occurs, and unpredictable price swings become more common. Without a defined economic events trading strategy, emotional decision-making or delayed reactions can lead to poor outcomes. This is where automated systems like SMARTT shine—executing trades instantly and intelligently based on real-time data.

 Top Strategies for Trading during Major Economic Events

 1. Avoid Trading Right Before the News Release

Holding positions just before a high-impact event is risky unless you’re highly experienced. Price spikes can trigger stop losses prematurely or cause unnecessary stress. Many professionals prefer to observe how the market reacts for a few minutes before entering a trade.

Instead of guessing, SMARTT monitors how top global traders react to the news, then intelligently follows high-probability entries after initial volatility has settled.

 2. Use a Calendar to Track Scheduled Events

A reliable economic calendar (like those provided by ForexFactory or Investing.com) helps traders anticipate market-moving news. Being prepared allows you to choose when to trade and when to sit out.

SMARTT is pre-programmed with all major economic calendars and is optimized to trade only when the odds are in your favor, ensuring discipline and precision.

 3. Limit Leverage and Adjust Position Sizes

Due to high volatility, using excessive leverage can amplify both gains and losses. Traders should reduce their position sizes when trading around economic events to protect capital.

With SMARTT, you can pre-set risk parameters such as lot size and stop-loss, and the robot will adapt to market conditions without exceeding your risk tolerance.

 4. Apply Technical and Fundamental Analysis Together

Relying solely on one type of analysis during economic events can be misleading. Combining fundamentals (understanding what the news means) with technicals (chart behavior) provides a more balanced view.

SMARTT does this automatically—processing both economic data and technical indicators simultaneously to make the most informed trading decisions.

 5. Trade the Reaction, Not the News

Often, the initial reaction to a news release is not the true market direction. Institutions may create fake moves (known as "stop hunts") before moving price in the actual direction.

SMARTT waits for confirmation from top-performing traders before acting—giving it a psychological and statistical edge in catching the true direction of the market.

 6. Use Pending Orders with Triggers

Setting buy-stop or sell-stop orders slightly above or below current price levels can help catch breakouts after a news release—without entering too early.

SMARTT’s AI engine can place and modify such pending orders in milliseconds, removing emotional hesitation and speeding up reaction time.

 Why SMARTT Is Ideal for Trading Economic Events

Many beginner traders hesitate to trade during economic events because of fear and lack of experience. SMARTT solves this problem by providing:

• Fully automated execution: No need to manually watch news or charts. SMARTT does the work. 

• Expert-driven strategy base: It mimics the best traders globally and executes their strategies smartly. 

• Cross-market capability: Whether it’s Forex, crypto, or metals, SMARTT is equipped to trade all major markets based on economic events. 

• Risk-managed trades: Your funds stay in your broker’s account and SMARTT only acts based on your chosen risk level.

 Final Thoughts

Trading during major economic events doesn’t have to be intimidating. With the right strategy and the support of an intelligent automated system like SMARTT, traders can not only manage risk more effectively but also capitalize on some of the most lucrative moments in the market.

Whether you’re just getting started or looking to refine your news trading approach, SMARTT empowers you to trade smarter, faster, and with more confidence.