Is there any way to "protect" your non-news-based positions from unexpected movements due to news releases? My last three trades that have been stopped out have done so due to large, news-driven movements. With the exclusion of the NFP release, and FOMC decisions, I'm not a news trader. I generally enter into positions that last 3-5 days.
I usually check for upcoming announcements before entering a position, but it's hard in FX because everything is so interrelated and news from one country can effect completely unrelated currency pairs. Is there a way to hedge against this using similar pairs, or something similar? I realize that news is a fundamental part of Forex and can't be eliminated, but I'm trying to minimize the impact of uncertain events on my positions.
I usually check for upcoming announcements before entering a position, but it's hard in FX because everything is so interrelated and news from one country can effect completely unrelated currency pairs. Is there a way to hedge against this using similar pairs, or something similar? I realize that news is a fundamental part of Forex and can't be eliminated, but I'm trying to minimize the impact of uncertain events on my positions.