Four Reports Released Friday AM Make For A Trade Setup

A variety of reports comes out Friday, August 28, 2015 at 8:30 AM ET. These reports can move the EUR/USD however, not as much as sometimes traders may think or anticipate. It has been found that these markets tend to the move the market and then the market will pull back. An Iron Condor strategy is excellent to use when the market is expected to move that way. In fact, with an Iron Condor strategy, the market need not move at all.

The four reports include:

• Goods Trade Balance
• Core Personal Consumption Expenditures (PCE) Price Index
• Personal Spending
• Personal Income

Goods Trade Balance shows the balance of imported and exported goods for the month before with a positive number meaning more goods were exported than imported. It is different from the Trade Balance as it reports only on goods however; goods make up 75% of the Trade Balance, which normally comes out 5 days later. The Core PCE shows if the price of consumer goods and services, excluding food and energy, is up or down. Personal Spending is the change in value on purchases by consumers. Finally, Personal Income is the change in income for consumers from all sources.

For an Iron Condor strategy to trade the release of these four reports, you will trade Nadex EUR/USD spreads. The reports come out at 8:30 AM ET so the best time to enter is 7:00 AM ET for 9:00 AM ET expirations. An Iron Condor needs two spreads stacked one on top of the other, if you plotted them on a chart. A spread has a floor and a ceiling and is designed so the trader cannot win or lose beyond the floor or ceiling depending on if the trade is long or short. This provides defined limited risk for the trader.

You will buy the lower spread with the ceiling being where the market is trading at the time and sell the upper spread with the floor being where the market is trading at the time. This sets up the spreads so the ceiling of the lower spread meets the floor of the top spread and is where the market is trading at the time of entry. You want your profit potential to be $25.00 or more. This may not seem like much, and you can add more contracts if you want. Be sure to have the same number of contracts on both sides of the Iron Condor.

Based on analysis from previous market reaction to release of the reports, the market will most likely move and then pull back. Should the market stay in the general area where it started or move and then pull back, that’s good for your trade. Your greatest profit is when the market returns to center, directly between your spreads.

To learn more about Iron Condors, see The Awesomeness Of An Iron Condor.. Apex Investing has a complete news calendar listing events to trade and trade setups. To learn how to trade Nadex binaries and spreads, futures, forex and or CFDs, go to www.apexinvesting.com. Nadex can be traded from 49 different countries.