By Darrell Martin
Traders starting out can sometimes find it hard to find the time to trade, especially when they are working daytime work hours. Scheduled news events can provide volatility in the currency markets after hours providing nighttime opportunities for trading. Wednesday, July 13, at 9:30 PM ET, Australia’s Employment Change, Unemployment Rate and New Motor Vehicle Sales will be released. Using Nadex AUD/USD spreads, an Iron Condor strategy can be used to trade this scheduled evening news event.
Entering at 6:00 PM ET for the 11:00 PM ET expirations, buy a spread with the ceiling where the market is trading, and sell a spread with the floor where the market is trading. Be sure to buy below the market and with a profit potential of around $17 or more. The sold spread should be sold above the market and for a $17 profit potential or more.
The object is for the combined profit potential to be around $35 or more. When accomplished, the breakeven points for the trade are 35 pips above and below. This strategy is set up for the market to either range, stay where it is, or make a move and pull back. As time expires and should the market settle somewhere within the breakeven points, then the trade will profit.
Stops should be placed however, in the event the market decides to take off in a direction and keep going. With an approximate $35 or more profit potential, stops should be placed where the market would be at 70 pips up or down. At those points, the risk would be approximately $35 for a 1:1 risk/reward ratio.
Traders can easily find the right spreads for the trade using the spread scanner designed for trading Nadex spreads. All the needed information to quickly and accurately find the right spreads is available in one window. See below for a layout of the spread scanner. Looking at the risk/reward columns, traders can find the right profit and/or max risk amounts. The floor and ceiling of the spreads are listed down the center.
Free access to the scanner as well as day trading education is available at www.apexinvesting.com.
