A Trade Strategy With Plenty Of Wiggle Room In It

Numbers for Employed and Unemployed people in Australia are coming out soon.

These reports come out monthly and make for trade opportunities in the evening time when Australia is awake and trading.

The Australian Bureau of Statistics releases the change in the number of people employed, while the other report, the Unemployment Rate, tells the percentage of workforce that is seeking employment.

The trade is for entering at 6 PM ET, with the reports coming out at 9:30 PM ET, Wednesday, September 9, 2015.

This Trade Has Capped Risk

The reason you can enter so early is because the strategy calls for trading two Nadex AUD/USD Spreads. Your expiration time would be 11:00 PM ET. With a floor and a ceiling, spreads provide capped risk.

You can’t lose past the floor or ceiling of the spread depending on whether you are long or short on the spread. For this trade you will be long on the lower spread, the one below market, with its ceiling being where the market is trading at the time.

For the upper spread, which will be above the market, you will be short, with its floor where the market is trading at the time. If you plotted the two spreads on an AUD/USD chart, you would see how they looked stacked on top of each other.

This strategy is called an Iron Condor strategy and is good for when you don’t know which way the market is going to go, when the market may not move much and then will pull back, or the market doesn’t move much at all.

You want to set your trade up with a profit potential of $35 or more, having a profit potential of around $17 - $18 for each side.

The Iron Condor Strategy Has Plenty Of Wiggle Room For 1:1 Risk Reward Ratio

These reports are important vital economic data. However, based on the market’s reaction in the past, it was found that the Iron Condor strategy with a $35 or more profit potential was the best setup.

Depending on your exact entries, this market can move up to 70 pips in one direction and not pull back, and your trade will have a 1:1 risk reward ratio. You can see that gives the trade plenty of wiggle room.

For break-even the market can move 35 pips in either direction, again depending on your exact entries. At around 35 pips, one side of your trade will profit while the other loses.

Based on your entries, if the market moves around 17 or 18 pips in either direction, then you will profit on one side and the other side will be break even. You can leave the trade on until expiration giving the market time to play out.

Nadex is a US based regulated exchange and can be traded from 49 different countries.

To learn more on how to trade Nadex binaries and spreads, or futures, forex and CFDs, visit www.apexinvesting.com for free education and membership, with key indicators.