This is an interesting concept from a small group of traders who have studied the market price action directly preceding 700 risk events over the last 7 years. They try to get a sense of what market expectations and positioning is based on what happens in the 60 minutes leading up to a risk event and they then look for trading opportunities directly after the event. They tell me that they will trade after 16% of risk events, the others they leave alone. I’m keen to see their strategy returns!
I’ll let you know if any trade ideas emerge but it never ceases to amaze me the lengths people will go to, to try and gain a competitive advantage. Good on them.