Trading strategy on Nonfarm Payrolls is quite simple, but very effective and allows you to make a profit in the range of 100-150 points in 1-3 trading hours, but it requires a certain trade skills, which I will discuss below.
Nonfarm Payrolls - a very important US economic indicators, which comes out in 16:30 MSK in the 1st Friday of each new month (next time it will be published on 7 August 2009 - ie tomorrow). Immediately after its publication, the forex market reaction to the news outlet can be very powerful, and it follows that the output of this news can be good money.
Usually the day of publication Nonfarm Payrolls are very few traders come into the trading process to the release of Nonfarm Payrolls (abbr. NFP). During this period, the forex market often provides false breakouts levels or traded in a fairly narrow (30-70 pips) range. And the main trading capacity will be used at the time of the news.
To trade forex recommend choosing DC terminal Metatrader 4
So, the essence of forex strategy "Trading on Nonfarm Payrolls» as follows:
5-10 minutes prior to the publication of NFP indicator must be set pending orders in MT4 trading terminal. Because NFP is difficult to predict enough, and the forex market reaction to the published indicator NFP generally unpredictable, so you need to place a pending order in two opposite directions (buy and sell).
If you have an open trading positions until the NFP, it is still better to close because even if you install a safety stop-loss order closer to the price, and the market will be opened to the side against you with a gap, then you run the risk that your order will be closed not at the price of stop-loss, and the market price at the time of release of news (at the opening price gap), and sometimes it happens and 20-70 points, which can be very detrimental to your deposit. Although, if the market will open in your direction - you can earn good money - ie, 50% to 50% - it's up to you of course ...
Basically, after the publication of the NFP, the market in the first minute tends to move in one direction, then usually there is a sharp move in the opposite direction. Therefore, to try to avoid unwanted operation of our pending order, put them at a distance of 35 pips from the price to the level of news release (see Figure 1):
So pending orders have been exposed. And now you need to take care of stop-loss orders, they need to be put at a distance of 20-30 pips from the market entry price. And very importantly, remember - stop-loss should be set almost simultaneously with the pending orders to sample (this is necessary if you suddenly lost your DC link or the price will behave poorly to the news or after). Simply Ideal "trailing stop of 1 point, Advisor for Metatrader 4" (it has everything you need for "trade on the news", while working just perfect and all trade time never personally let me down).
At the expense of take-profit, I usually put it at a distance of 70-100 pips from the market entry price.
After the data were published Nonfarm Payrolls (16.30-16.31 Moscow time), the price of forex market is very strongly "explode" either up or down. Most likely, one of 2 of your pending orders open. If you notice a gain on a deployed warrant privyshaet 25-30 pips, you must quickly move the stop-loss order to "break-even" and a second warrant to remove (again "trailing stop" - in this case just your friend, he gives the order to permutation order garazdo person faster).
And now you have 3 options:
or you treylingovat your order at a safe distance - 10-25 points (depending on the chosen currency pair and valotilnosti on the market than it is stronger, the smaller the treylingstopa and pitch)
or behave as expected price (in this case the order must already be moved to zero)
or else close the portion of the profits (eg 50%), and leave the rest in the market.
After 20-25 minutes after the publication of data on Nonfarm Payrolls neobhodimoopredelit focus in the forex market.
If profits were not you zafiksirovanna earlier, in the period 16: 45-17: 05 - it's time to do it.
If the market has opened one of the orders and the price hovered around on high for 10-15 minutes on one important level (freeze - movement in the price range of 15 pips without further promotion price). In this case, you need to quickly fix the profits you, because It predicted a reversal in the market. That freeze prices in the forex market suggests that the mood is changing.
