A Scheduled Trade Opportunity With Retail Sales Info From The UK

A primary measure for most economies is consumer spending because it accounts for the most significant amount of economic activity. On Thursday, October 22, 2015 at 4:30 AM ET, the Office for National Statistics will release the Retail Sales percentage change. This percentage is of course inflation adjusted and is released monthly. When the report is released, it means a monthly trading opportunity for day traders. Fortunately, you can put this trade on the evening before by using Nadex spreads.

You can enter this trade as early as 11:00 PM ET on Wednesday for the Thursday, 7:00 AM ET expirations. The spread contract to trade is the Nadex GBP/USD spread. The strategy recommended is the Iron Condor using two spreads. For this report, it has been analyzed and found that the market will tend to make a move after the release and then pull back.

Using Nadex GBP/USD spreads, buy a lower spread below the market with the ceiling where the market is trading and sell an upper spread above the market with the floor where the market is trading. The trade should have a $35 or more combined profit potential as evenly distributed between the two spreads as possible. Using the spread scanner, you can easily find the right spreads for your Iron Condor strategy. The image below shows an example of the spread scanner displaying various Nadex GBP/USD spread contracts available for trade.

To view a larger image click HERE.

You can see from the image that with a few clicks you can isolate the spreads you want. First, choose your market. Then you can see the list of available spreads down the center with the floor and ceiling numbers. Make sure you look at the spreads with the 7:00 AM ET expiration. There are two ways to find spreads with the combined reward or profit potential you are looking for. One way is to look to the far left of the spreads under the Risk/Reward column. Look for spreads with a Reward of approximately $17 for both the sell and buy sides to get your combined $35 or more profit potential amount. Another way to find spreads with the correct profit potential would be to put $17 under Potential Reward in the filter area.

Where The Break Even Point Is And The Wide Range Of The Iron Condor

As long as you have the same number of spreads on each side of your Iron Condor, you can trade more spreads. The great advantage of the Iron Condor strategy is the wide range the market can move before the trade goes outside the 1:1 risk reward ratio. For example, on this trade depending on your exact entries, the market can move approximately 70 pips up or down for a range of 140 total pips before it goes outside the 1:1 risk reward ratio. The breakeven point, again depending on your exact entries, is when the market moves approximately 35 pips up or 35 pips down. One side of your Iron Condor may profit before the other. The market usually tends to react and then pulls back. Pulling back as close as possible to center between the two spreads makes for max profit.

Nadex can be traded from 49 different countries and is a US based, CFTC regulated exchange listing binaries and spreads. To access the spread scanner, and for free education on trading Nadex binaries, spreads as well as trading futures, forex and CFDs go to www.apexinvesting.com.