Strategy · Event-Driven
FAST-REACT NEWS TRADE
BullishDefined riskAdvanced
Overview
Monitor news feeds and execute on prediction markets within minutes of high-impact announcements. Speed and disciplined sizing capture the gap before market re-pricing.
Setup
- 1.Set up real-time alerts (Bloomberg, Twitter lists, government RSS feeds).
- 2.Pre-size your trade in advance: know exactly how many contracts you'd take at each price.
- 3.Execute within 60 seconds of credible confirmation.
- 4.Use limit orders 1-2 cents inside the moving market to avoid worst-fill slippage.
- 5.Exit within 1-3 hours; the edge decays as the market re-prices.
- 6.Track win rate; require >55% to justify ongoing time commitment.
Max profit
20-50 cent re-pricing moves are common on major news.
Max loss
Entry price; size each event to limit loss to <1% of capital.
Breakeven
Entry price plus slippage.
When to use
When you have a verified information edge in seconds, not minutes.
When to avoid
On rumors or unverified reports. When you cannot monitor markets in real time.