FOMC Meetings (Trading Strategy Backtest) – Stocks, Gold, And Bonds

FOMC meetings can have a significant impact on financial markets as decisions on interest rates made during these meetings can influence the direction of monetary policy and market expectations. Many traders look forward to them and trade the immediate volatility that follows such meetings. Want to know about FOMC meetings (trading strategies)?

The Federal Open Market Committee (FOMC) meetings are held by the Federal Reserve System to determine the direction of monetary policy in the United States. The FOMC sets the federal funds rate target, which is a benchmark interest rate, and reviews economic and financial conditions to guide its policy decisions. The outcome of the FOMC meetings and accompanying statements can have a significant impact on financial markets and the economy, causing fluctuations in stock, bond, and currency markets.

In this post, we take a look at FOMC meetings (trading strategies). At the bottom of the article, we provide you with specific backtests, statistics, and performance for stocks, gold, and bonds on the days leading up to the meeting, the day of the meeting, and the subsequent days after the meeting.

Before we do the backtests we have provided you with some background facts (the backtests come at the end):