Trade Strategy For UK Pricing Reports

Monday evening, as early as 11:00 PM ET, you can enter a trade in preparation for some early morning news being released Tuesday, March 22, 2016 at 5:30 AM ET. The Office for National Statistics in the UK will release seven different pricing reports including production, consumer, and housing. Based on previous releases and market reaction, it was found an Iron Condor strategy looking for a combined profit potential of $35 is a high probability trade.

The Market Can Go In Either Direction For This Strategy

The Iron Condor is a neutral strategy, great for when it is unknown which direction the market may move and effective for the market that moves and pulls back, ranges or doesn’t move at all. The object is to find two spreads. Buy a Nadex GBP/USD spread below the market but with the ceiling where the market is trading at the time, and sell a Nadex GBP/USD spread above the market but with the floor where the market is trading at the time. Each side of the Iron Condor should have a reward or profit potential of around $17 or more. To easily find the spreads that meet all the above parameters, use the spread scanner available free to all traders at www.apexinvesting.com. The spread scanner is simpler to use than the Nadex platform itself. All the information can be seen on one screen, in one window and orders submit instantly.

To view a larger image click HERE.

Looking at the image, for example, the spread’s floors and ceilings are listed down the center and the risk/reward for selling and buying the spread is listed on the outside left and right. Just click the ticket button to open a ticket and place an order. There are demo and live modes depending on which Nadex account you have open and choose to trade. Be sure to always demo trade before trading live. The scanner was designed by traders to make it easier to learn the ins and outs of trading spreads.

For this Iron Condor setup, the market can move up to 35 pips up or down and that is where your breakeven points will be, depending on what your exact entries were. When the market stays anywhere in between those points, you will profit. Be sure to enter limit take profit orders. Should the market make a move, one side can profit and when it pulls back, the other side may also profit before expiration. Alternatively, the market may stay in a range between those points. Then, the trade can go until expiration and profit. Max profit is when the market is right between the upper and lower spreads at expiration and for every pip away, it is only $1 less in profit. Stops should be placed at the 1:1 risk/reward ratio points, where the market moves up or down as far as 70 pips.

For a full calendar of news events to trade and strategies to trade them, visit www.apexinvesting.com. There you will find free education on how to trade futures, forex, CFDs as well as Nadex binaries and spreads. Nadex is a US based CFTC regulated exchange and can be traded from 48 different countries.