Quoting hans_gregorDislikedThe problem is that NFP had revisions all the time. I saw BLS reports where the actual number was revised three consecutive months (ie August revised in Sept, Oct and Nov). I have not done an analysis, but it seems that only in the past two or three months, the revisions are more important than the actual number.Ignored
That's because the big players change the rules all the time to screw the small players. Think about it, if it was straight thinking all the time, everyone would make money on this report and banks/brokers would lose a packet. By altering the way the market reacts, big players put confusion in the mind of smaller players. Confusion creates panic, and panic results in bad decisions and loss of funds. No one used to focus so much on revisions of NFP; once traders adapt to the whipsaw that it causes, the big players will change market reaction again.
This is what I am thinking as a strategy for next NFP:
1. Straddle 25 pips from market price some 5-10 seconds before news. Looks wide but when you think GBP fell some 100 pips you would still be up +75 pips. And you will not get caught in the fake out.
2.If entering market order, wait for initial spike to reverse before entering.
Thoughts anyone???