The NFP is one of the most volatile events. You can see ranges of 200-400 pips intraday. This means that if you get it right, you can have a great payday. Conversely, if you get it wrong you can blow your account if your stop isn’t respected. I never trade news events because it is a pure gamble. It can simply destroy any edge you have and at the end of the day, all trading is about is preserving your edge. This strategy has a pretty decent success rate and provides an approximate 3:1 risk to reward.
I have written this article in association with Dirty Economics. Give them a follow on Twitter.
I have written this article in association with Dirty Economics. Give them a follow on Twitter.
David Belle FX 