By Darrell Martin
The primary indicator for economic activity in the UK, Retail Sales, is being released this week Thursday, March 24, 2016, at 5:30 AM ET. Fortunately, there is a trade strategy you can enter the night before to trade it and not have to get up when the roosters crow. You just need to keep your eyelids open until the trade is placed.
Using Nadex spreads and an Iron Condor strategy, you can enter as early as 11:00 PM ET, Wednesday, the night before for 7:00 AM ET expirations. A spread allows you to trade a range of a market, long or short, with the floor and ceiling marking the range. You can’t win or lose past the floor or ceiling, depending on which direction you traded the spread. Spreads also allow you to enter at different times, depending on your strategy and what works for the event. It was found based on previous market moves to this news, that an Iron Condor, going for a profit potential of $35 or more, is recommended.
To set up your trade, buy a Nadex GBP/USD spread below the market but with the ceiling where the market is trading at the time and sell a Nadex GBP/USD spread above the market but with the floor where the market is trading at the time. With this setup, the market can move three ways and you have the potential to profit. It can make a move far enough for one side to profit, then pull back and the other side could profit. The market could stay in a range between your breakeven points of 35 pips up or down and you can profit. Finally, the market can stay right in the middle between the spreads until expiration and you would make max profit. For every pip away from the center the market is at expiration, it is only $1 less in profit.
Your Realistic Risk Is Not Your Max Risk
What about stops and risk? Risk may seem very high; however, your realistic risk is at a 1:1 risk/reward ratio, when you set stop limit orders and exit where the market would hit 70 pips up or down. To easily find your spreads at a glance, just go to www.apexinvesting.com. Open the spread scanner and choose your market. You will see the spreads are listed down the center with their floors and ceilings, and the risk reward is listed just to the outside left and right. Click the ticket icon and an order ticket will open where you can submit an order. Be sure to demo the trade before trading live.
Visit www.apexinvesting.com for 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 countries.
