Possibility Of Profiting Whichever Direction The Market Moves

If you’re trying to anticipate the direction of a market move in reaction to news, good luck! Instead, why not try a strategy that has the possibility of profiting when the market moves up or down? The Iron Condor strategy, using Nadex spreads is just such a strategy. The strategy allows the market to move any one of three ways to profit. The market cannot move at all, staying right where it is and the trade will profit. Or, the market can stay in a range or move and pull back and as long as it is between the breakeven points at settlement, the trade will profit.

Thursday, April 28, 2016, at 7:30 PM ET, the Australian Producer Price Index and Private Sector Credit news and numbers will be released. After tracking market reaction after 12 months of trades, it was found that the market tends to make a move and pull back, which is a good setup for the Iron Condor strategy.

Entering two Nadex AUD/USD spreads, buy the first one below the market but with the ceiling trading where the market is at the time, and sell the second one above the market but with the floor trading where the market is at the time. Each spread should have a profit potential of $15 or more, for a combined potential of $30 or more. Upon entering, you pay the max risk of the spread, which may seem like a large amount. Keep your risk realistic using a 1:1 risk/reward ratio.

For this trade setup, if the profit potential is $30, then exit the trade if the market moves up or down 60 pips. As long as the market is between the breakeven points, where it would be after having moved up or down 30 pips, the trade will make some profit. When the market at settlement is right between the spreads where it started from is max profit.

The spread scanner can be used to easily find spreads with the above parameters at a glance. After you log in to your Nadex demo or live account, open the scanner and choose the AUD/USD market. Look for the spreads expiring at 9:00 PM ET, and check their reward potential. For selling spreads, the risk/reward level is on the left side of the window, and the risk/reward level for buying is on the right. Double check the floor and ceiling levels, then click the ticket icon. Enter your trade info and click submit. Your trade is entered immediately. You can enter as early as 7:00 PM ET for 9:00 PM ET expirations on this trade recommendation.

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AUD/USD

The spread scanner is available free for all traders at www.apexinvesting.com. Nadex is a US based CFTC regulated exchange and can be traded from 48 different countries.