Backtesting Shows Trade Opportunity After Australian Employment Data Release
If you’re trying to make a go of it day trading, then learning to trade the news can be a great way to start. A beginning day trader may very well be working a day job making it difficult to day trade.
Fortunately, news comes out around the clock and news can make the markets move. Specific news reports are released on a regular basis: weekly, monthly, quarterly or even annually.
If you track a specific news release and a market’s reaction to it over several releases, you can make note of any consistencies either with the size of market moves or the direction of moves. When consistencies are found, a planned strategy can be used for the next time that news report comes out, and you have yourself a planned trade.
Wednesday, February 17, 2016, at 7:30 PM ET the Australian Employment Change and Unemployment Rate will be released. The AUD/USD market tends to react to this news by making a move and then pulling back.
It was found after 12 - 24 months of market analysis after the news that an Iron Condor strategy trading Nadex spreads looking for $35 or more in profit potential is a high probability trade.
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