Up/Down Market Doesn't Matter For This Trade Setup

A successful trader looks for high probability trades. One way to find high probability trade opportunities is to look for consistency in market movement after scheduled news events.

Apex Investing has done just that and has a full calendar listed with news events to trade with strategies to trade them. Frequently there will be news that markets will react to but then, as markets normally do, they will pull back.

This kind of consistent movement makes for a high probability trade opportunity using an Iron Condor.

Nadex Spreads Trade With An Iron Condor Setup

Iron Condors are perfect for when markets pull back. With this kind of strategy, you want the market to actually remain where it started when you entered, or pull back to where it was when you entered.

This Iron Condor calls for two Nadex spreads. The news event is U.S. Pending Home Sales being released at 10:00 AM ET, Thursday, August 27, 2015.

This particular report is based on homes under contract to be sold but not having closed yet and excluding new construction. The report is put out monthly and the forecast is for an increase of 1.3%. If the actual comes out and is more than was forecast, that is good for currency. In the last two reports, based on June and July, the actual was less than forecast, being 0.9% and -1.8% respectively.

Iron Condor: Stacked Spreads One on Bottom, One on Top

For this strategy, it doesn’t matter which way the market goes, up or down, long or short. The market only needs to pull back or stay where it started. The reason being when you enter the trade, you’re going to trade Nadex EUR/USD spreads.

Spreads have a ceiling and a floor. You want to trade two spreads and if you charted them on a chart specifically a chart of the EUR/USD there would be a spread on the bottom and a spread directly on top of it.

To do this you will buy the lower spread with its ceiling being where the market is trading at the time of entry. You will also sell the upper spread with its floor being where the market is trading at the time of entry.

Therefore, the floor of the upper spread will meet the ceiling of the lower spread and be where the market is trading at the time of entry. Entry will be at 9:00 AM ET for 11:00 AM ET expiration.

Now after the release of the report, when the market stays or moves and pulls back to where it started, which is right where your ceiling and floor of your spreads meet, that’s where max profit will be for your trade.

The profit potential for this trade is $25 or more. If that amount seems low and you want to go for more profit, you can trade more spreads. Just be sure you have equal number of spreads on top and bottom of your Iron Condor setup.

For more information on how to trade the news and Iron Condors, go to www.apexinvesting.com.

Apex offers free education on trading Nadex spreads and binaries as well as futures, forex and CFDs.

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