Manufacturing Info To Be Released From Philly Fed

The Federal Reserve Bank of Philadelphia will be releasing their Philly Fed Manufacturing Index. This is a monthly survey taking responses from some 250 manufacturers in the Philadelphia area. Those surveyed are asked to rate general business conditions. The release is scheduled for Thursday at 10:00 a.m. ET. The index is a leading indicator of economic health and its release can be a good time for a trade. The recommended strategy is an Iron Condor using Nadex EUR/USD spreads ready to make profit should the market move slightly in either direction, or move and then pull back or stay in a range.

Nadex spreads have capped risk. The amount you put up to enter the trade is your total risk. There is no margin so you can’t lose more than you put in. To find just the right spreads for any strategy, use the spread scanner, which provides a list of available spreads. It also has filters to help you narrow down the choices. When looking at the spread scanner, in the risk/reward column, the amount of the risk is your max risk for the trade.

For an Iron Condor you need two spreads. You want to buy a lower spread below the market but with its ceiling where the market is trading at the time. You also want to sell an upper spread above the market but with its floor where the market is trading at the time. The release is at 10:00 a.m. ET so you can enter as early as 9:00 a.m. ET for the 11:00 a.m. ET expirations. Below you can see an example of the spread scanner displaying EUR/USD spreads.

To view larger image click HERE.

For this Iron Condor you are looking for a profit potential of $25 or more. To find that, first find the spreads with the right ceiling and floor parameters as detailed above. Then, if or when those spreads have a reward listed to the far right and far left risk/reward column of $11 - $13 or more, for a combined reward of $25 between them, enter the trade. If not all those parameters happen, then do not enter the trade. It’s never good to force a trade. You want only to take the best entries, making for higher probability to profit.

Depending on exactly where you enter your trade, the breakeven point for this trade will be where the market hits 25 pips above or below the market. Anywhere else in between those points and you will profit the closer to expiration you get. One side of the trade may profit before the other side. If the market goes past the breakeven points, then it is $1 loss for every pip past, all depending on exactly where you entered. Max profit is when the market is right between your spreads at expiration. The market can move approximately 50 pips up or 50 pips down and your trade will be a 1:1 risk reward ratio again depending on your exact entries.

For free access to the spread scanner visit www.apexinvesting.com where you can find free education on how to trade Nadex binaries and spreads as well as futures, forex and CFDs. Nadex is a US based exchange, regulated by the CFTC and can be traded from 49 different countries.