The FED Drift

What is the FED drift strategy?

The FED Drift strategy is that global equity markets will rise before the FOMC meeting. The idea was presented in detail by David O. Lucca and Emanuel Moench in their paper “The Pre-FOMC Announcement Drift” in September 2011. To benefit from the pre-FOMC announcement drift, we buy the night before the FOMC decided the S&P 500. We held this position for a total of 24 hours until the decision was made.

Implementation could be achieved with a Future (e.g. ES or MES) or Contracts for Difference (CFD`s).


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When are the next Fed meetings?

  • 14. December 2022 – Monetary policy meeting with interest rate decision
  • 1. February 2023 – Monetary policy meeting
  • 21. March 2023 – Monetary policy meeting with interest rate decision