A Strategy Set For Profit Either Direction The Market Moves After US Prelim GDP
The US Gross Domestic Product is released in three versions, the Advanced, Preliminary and the Final. It is the greatest measure of the economy and an indicator of economic health. The Final report has the most impact on the markets, however the Preliminary report, released Friday Morning, also impacts the markets and is good for trading using an Iron Condor strategy with Nadex EUR/USD spreads.
For example, the spreads should have a $15 or more profit potential per spread for a combined profit potential of $30 or more. The market can move up and settle 30 pips or move down and settle 30 pips and the trade would be breakeven. If the market is anywhere in between those points at settlement, then the trade profits, because the spreads were bought below the market with $15 profit potential minimum and sold above with $15 profit potential minimum. The market can react, move and then pull back allowing the strategy to profit whichever direction the market moves and pulls back.
Stops should be placed where the market would hit 60 pips above and 60 pips below entry. This marks the trade’s 1:1 risk/reward ratio points.
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