The Federal Open Market Committee (FOMC) days can cause significant market volatility, especially for traders using strategies like SPX zero DTE. Here's a step-by-step guide to help you avoid these days in your automated trading system.
FOMC days occur when the Federal Reserve, the central bank of the United States, holds meetings to discuss monetary policies, such as interest rates and money printing. These events tend to create significant fluctuations in the market, which can be risky for certain trading strategies, especially those that rely on a stable market like iron condors.
If you're a zero DTE (zero days to expiration) trader, particularly in SPX, you may want to avoid FOMC days. These days can lead to unpredictable market movements, which could result in losses if you’re holding positions that expect a flat market.
FOMC meetings take place around two times per month or every other month. To stay updated, you can visit the Federal Reserve’s official website for the FOMC calendar. For example, the 2025 schedule includes meetings in January, March, May, June, July, September, October, and December.
To protect yourself from the increased volatility of FOMC days, you can configure your trading bot to avoid entering trades on those dates. In your options Auto Trader settings, find the option that asks whether you want to avoid entries on FOMC days.
Yes: Select this option to prevent your bot from making trades during FOMC days.
No: If you prefer to take the risk and trade on these days, leave this option unchecked.
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