Non-Farm Payroll Forex strategy. 10 winners in a row.

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Non-Farm Payroll Forex strategy

 

A Non-farm Payroll Forex strategy

When I started trading the non-farm payroll announcement was a license to print money. The non-farm payroll announcement normally occurs on the 1st Friday of every month and produces the biggest volatility in financial markets. It reports the (un)employment figures for the US and is the prime indicator of the economic state of the US.

How we would print money is that the brokers in those days were not as sharp as they are today. So we would place a buy pending order and a sell pending order just above or below (+/- 12 pips) the current EURUSD price 1 minute before the announcement. A standard straddle.

When the announcement happened the light literally went out. The price moved so fast that nobody know where it was. Most broker platforms would just hang. Then suddenly after a few minutes the price would appear. Because of this there was never a risk of a whipsaw. Only one of the pending orders would activate. In those days the broker honored the entry price so you could literally make 100 pips in a few minutes. The price movements were also much higher than now with +200 pip moves in 5 to 10 minutes not uncommon.

Many traders used to make a living trading the low risk Non-Farm Payroll announcement. I remember nominating the trade prior to giving a Forex Course in Brisbane. It sure got the participants attention.

But as the hit song of Mary Hopkins (for those who can remember that far back) says:

“Those were the days my friend,

We thought they would never end,

We’d sing and dance forever and a day”

It didn’t last.

  • Now brokers widen the spread considerably to the point the any pending orders have a huge risk of being activated and stopped out at the same time.
  • Entries are only acknowledged at the price registered so could jump over your pending order by a number of pips.
  • Some even disallow entries close to the announcement completely
  • Their system are so good that whipsaws are more common.

So now the non-farms payroll is more of a threat than an opportunity with many traders exiting deals before the announcement.

Non-Farms Payroll strategy

Some however still trade the announcement with some success.

Use this link to see a non-Farms Payroll strategy that has produced 10 winners in a row

FREE NON FARM FOREX STRATEGY

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Need more information on this Non-Farm Payroll announcement

Wondering if the Greenback is in for more heartbreak or if it could see better days ahead? The upcoming U.S. jobs release could have the answer, as it could give Forex traders more clues on when the Fed might hike Interest Rates! Here’s my Forex Trading Guide for this much-awaited economic event.

Read more: http://www.babypips.com/blogs/piponomics/forex-nfp-20150507.html#ixzz3ZXR9Pfld

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