I've been researching this issue extensively. How does this approach sound? I'll be interested in any thoughts.
When you put on a trade, use multiple lots. It's easy for me, since I'm trading on a mini-account, at 10k lots. If your trade moves in your direction, and an economic announcement that will likely affect the respective pair is minutes away, scale out a part of your position, and then place a logical stop on the balance. The stop would either be placed at break-even, or at some logical support/resistance/Fibo/Pivot line. This way, you book a portion of your profits, and could become even more profitable if the announcement furthers the direction in which you entered. If the market moves against you, you're out, but you still have something to show. Also, by scaling back, you effectively align yourself with position-sizing, with the likely increase in market volatility pending.
One downside, is that if the market becomes extremely volatile, and your stop is kicked out by a spike, with massive brokerage slippage. Anyway, I supsect there is no easy answer, but any thoughts are appreciated.
BTW, thanks mp6140 for your comments. I've looked at past charts and what you say does often occur...retracement to the overall, underlying trend.