Don't Force A Trade. Wait For The Right Parameters

Automatic Data Processing, Inc. (ADP) will release the US ADP Non-Farm Employment Change, the estimated change of employed people for the previous month. However, this number will exclude farming and government employed people. The number is the released Wednesday, September 2, 2015 at 8:15 AM ET, and will make for a trade opportunity using Nadex Spreads. If you don’t know about Nadex, it’s an exchange based out of Chicago and lists capped risk derivatives such as binaries and spreads on a variety of global financial markets. This trade tip is for the EUR/USD, more specifically, to trade two Nadex EUR/USD Spreads.

Release Is At 8:15 And Entry Is 7 AM ET

Since the reports are scheduled for release at 8:15 AM ET, your entry time is 7:00 AM ET for 9:00 AM ET expirations. The strategy is an Iron Condor strategy, which needs two spreads for the setup. Looking at a chart and plotting your spread’s floors and ceilings, you will see that there is a lower spread and an upper spread for this strategy. You want to buy the lower spread with its ceiling being where the EUR/USD market is trading at the time and sell the upper spread with its floor being where the EUR/USD market is trading at the time. With this setup, you should see that the lower spread’s ceiling meets the floor of the upper spread.

How To Determine Your Profit Potential

The possible profit for this trade will be the distance between your bought price for the lower spread and its ceiling and the sold price for this trade and its floor. You want your profit potential to be $30 or more. It is possible to trade more spreads if you want as long as you keep the same number of spreads on each side of your Iron Condor and you put all spreads on at the same time. If, for whatever reason, you aren’t able to find the right spreads to meet your profit potential or you can’t find spreads with the right floor and ceiling parameters, then don’t take the trade.

It’s never good to force a trade. The probability of your profiting on the trade goes down and the probability of possible loss goes up. For this trade it’s been found in the past 12 - 24 months that the market will move and then tends to pull back which is what you’re looking for the market to do for this setup. When the market pulls back to center after its move that is what you want. The closer to the center between your spreads the market pulls back to then the higher your profit.

Nadex can be traded from 49 different countries. Apex Investing has a complete news calendar with strategies to trade at www.apexinvesting.com.