Using Spread Scanner To Trade The Latest Business News Easily

The Institute for Supply Management (ISM) is set to release its monthly results from some 400 surveyed purchasing managers on Friday, February 3, at 10:00 AM. These managers are asked questions regarding various factors in the economy including employment, production, new orders, inventories, and other conditions. This scheduled news is released monthly and can be traded with the right strategy.

Since any market reaction to news is truly unpredictable, as far as knowing which direction it will go, an Iron Condor can work well for news trades. The Iron Condor is a strategy using two Nadex spreads. One is bought below the market with its ceiling where the market is trading at the time and one is sold above the market having its floor where the market is trading at the time.

Based on an average move over a 12-24 month period, the EUR/USD moves in reaction to this news. Each spread should have at least a $12 profit potential for a $25 or more combined profit potential. Spreads with all the above parameters can be easily filtered out and traded even for new traders using the spread scanner.

The spread scanner was designed by traders to be intuitive for a beginner trader and at the same time, highly productive for the advanced trader. Beginners and advanced traders can quickly isolate the best Nadex spreads for specific trade strategies and enjoy fast and accurate trade execution.

Entry for this trade can be as early as 9:00 AM ET for an 11:00 AM ET expiration. Filters can be set in the spread scanner for EUR/USD spreads with those time frames. Once the possible spreads are listed, simply look down the outer left and right columns for the desired reward potentials. Then, verify that the floor and ceiling parameters match. If all lines up, those are the high probability spreads for this Iron Condor strategy.

Typically, for this news event, the market makes a move and then pulls back. Each spread is ready to profit when the market pulls back as close to center between the spreads as possible. If the market moves 25 pips up or down from where the market was at entry, the trade is at breakeven. Stops should be placed at the 1:1 risk reward ratio points in the event the market takes off and doesn’t make a pull back. Those points for this trade are 50 pips above and below from where the market was at entry. Max profit is when the market is right between the two spreads at settlement. When the market settles anywhere in between the two breakeven points, some profit is made. That range is a 50 pip wide range, again 25 pips up or down from where the market was at entry.

For free access to the spread scanner and free access to day trading education, visit www.apexinvesting.com.