Nonfarm Payrolls Trading
This strategy is very simple and effective, but at the same time not everyone will guess it. It will require you to use basic skills of trade and almost guarantees steady income.
The bottom line is that on the first Friday of every month very important economic news from the U.S. publish, which is announced a change in one of the most important indicator for Forex market – Nonfarm Payrolls. Publication of news happens at 12.30 GMT and market’s reaction to them is extremely powerful, respectively, there are always huge movement can be wrapped for a large profit and now we’ll tell how to do it.
As to predict the change on Nonfarm Payrolls is pretty hard and predict Forex reaction on it – impossible at all, then we will resort to some tricks. Before you begin to act, we recommend to close all the orders. Using this strategy, it is better to foresee that by 12.30 GMT the trader does not have any open trades.
So the goal is: 5 minutes before the publication of news the trader should put two pending orders – buy order and sell order. As a rule, before the news was released, market fluctuations are not significant (approx. 30 points range), so we put the opening of the transaction at a distance of 40 points from current price – this is the first trick that gives us an insurance against premature discovery. The second trick is the time. It will take place between pending orders and news publication. Thus, we would be confident that orders will not be opened by false fluctuations.
At the next step we should put out stop-loss at a distance of 20-25 points from the opening price of the transaction – that’s insures us from communication problems as a minimum. After a stop-loss, of course, we place take-profit – 80 points from the opening price of the transaction.
So our time comes and Nonfarm Payrolls publishes, then the price will go dramatically either up or down, which means that one of our orders works and likely to be immediately in profit by 25-35 points. At this point, the second order must be canceled and the stop-loss should be quickly moved to zero profit zone or even permanent income.
Now after we are guaranteed of a full safety, we have a choice. We can close the order now and get our profit. Alternatively we should little trail the stop-loss and take-profit in the right direction and follow as our profit increases and close the order, when it would be necessary. We also can leave the stop loss at zero profit level wait for take profit drawdown.
If you’ve seen the price freezes, you should close your position – it speaks of a possible sharp swing in the opposite direction.
Disadvantage of this strategy is that you can use it only once a month, however, when the trader properly follows the instructions, the chance of making a profit is committed to 100% and time costs are minimal. For the same reasons it is recommended to trade with high volume that relates this strategy to the category of aggressive, but very effective..
Ready To Start Trading
TopOption- TopOption Binary Options platform is the first ever fully EU regulated broker under CySec which provides high returns, user-friendly trading experience, personalized customer service.
BinaryMate – Great broker for traders from usa , including a live video chat with managers 24/7.
IQ Option - This is the most affordable broker with only $10 minimum deposit.
You can also visit our binary brokers list : Click Here