By Darrell Martin
The Office for National Statistics will release multiple scheduled news reports for the UK on Tuesday, February 14, at 4:30 AM ET. Included are:
-
Consumer Price Index
-
Producer Price Index Input
-
Retail Price Index
-
Core Consumer Price Index
-
House Price Index
-
Producer Price Index Output
All of the above have to do with pricing, which affects inflation and the economy in various ways. Traders pay attention to scheduled news such as this. When there is consistent reaction and movement, trade strategies can be planned for trading the events.
This news can be traded the evening before, in fact or at least entered, as early as 11:30 PM ET, for 7:00 AM ET expirations, using Nadex GBP/USD spreads. One spread is bought with the ceiling where the market is trading at the time and one spread is sold with the floor where the market is trading at the time. Each spread should have a profit potential of $17 or more for a combined profit potential of $35 or more for the trade.
To easily find the right spreads for the trade, even while being a beginner, one simply uses the spread scanner. Access is free. Filters are used to bring up the right expiration times for the right market spreads, i.e. Nadex GBP/USD. Then, simply look down the risk reward columns for the correct profit potential. Once identified, verify the ceiling and floor parameters and the trade can be entered. For a glimpse of the spread scanner, see below.
Stops can be placed at the 1:1 risk reward ratio points in the event the market takes off and doesn’t return. Those points for this trade are 70 pips above and below from where the market was at entry. When the market settles anywhere in between the breakeven points of 35 pips above and below from where the market was at entry, then profit is made. Max profit is made when the market settles between the two spreads. For this event, the market tends to make a reactionary move and then pull back, making the Iron Condor strategy a high probability strategy.
For free access to the spread scanner and free day trading education, see www.apexinvesting.com.