Get A Neutral Strategy Ready For Whichever Direction The Market Goes

US Durable Goods and Core Durable Goods Orders will be released Thursday, March 24, 2016, at 8:30 AM ET. These orders are for hard goods items that have a life expectancy of more than three years. The Core order numbers exclude the transportation items due to their volatility, in order not to distort the numbers.

An Iron Condor is a neutral strategy, which has the possibility to collect profit regardless the direction the market goes up or down. Using Nadex EUR/USD spreads, buy a spread below the market but with the ceiling where the market is trading at the time. Also, sell a Nadex EUR/USD spread above the market but with the floor where the market is trading at the time. Based on previous market reaction to these news releases, it was found that the market normally makes a move and then pulls back. You want to have a profit potential of $30 or more combined between the spreads. Each spread should have around a $15 profit potential or more.

Buy Below The Market And Sell Above the Market

With this strategy, since you bought below the market, the market can move down 30 pips before it hits breakeven. Likewise, since you sold above the market, the market can move up 30 pips before it hits breakeven, depending on your exact entries. If the market does move up or down 30 pips, one side will profit. Then, if the market pulls back, the other side could profit as well. You can enter the trade as early as 8:00 AM ET for 10:00 AM ET expirations. Be sure to place take profit limit orders after entering. When the market is right between the two spreads at expiration is max profit. If the market stays in a range and is close to center between the two spreads, you still profit. It’s only $1 less for every pip away the market is from the center between the spreads at expiration. You can see the variety of ways to profit and the wide range the market has to move.

Of course, you need to consider risk. Your realistic risk is a 1:1 risk reward ratio. Depending on where your exact entries are, those points will be where the market hits 60 pips up or down. At those points is where you would call the trade and exit for an approximate $30 loss.

If $30 profit seems low, you can always trade more spreads; just be sure to trade the same number of spreads on each side. Also remember, as you add more spreads to the trade you must also manage your risk.

To easily enter your Iron Condor trade and choose your spreads, go to www.apexinvesting.com. After choosing your preferred market, the spreads are listed down the middle with their floors and ceilings. The reward potential is listed to the left outside for selling and to the right outside if you are buying. Just click the ticket icon to open an order ticket and submit your order.

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