There is Nonfarm payroll (NFP) and unemployment data from USA in every Months first Friday. Generally market is highly volatile during this type of news.
We can follow simple strategy before news risking 12 to 14 pips only in each trade.
Generally there is low volatility few minutes before data release. So we can place 4 pending orders “Buy stop” and “sell stop” order for usdcad and gbpusd as below. Please place these pending order 3 mins before news and be quick.
How to place trade?
Suppose Current market price of gbpusd is 1.2380 and usdcad 1.3950 just 3 minutes before news
Place below 4 pending orders:
1. Sell stop (14 pips below cmp) gbpusd at 1.2366, SL 1.2380 TP open
2. Buy stop gbpusd (14 pips above) 1.2394 SL 1.2380 TP open
3. Sell stop usdcad 1.3936 sl 1.3950 Tp open
4. Buy stop usdcad 1.3964 SL 1.3950 tp open
SL will be at current market price and dont keep tp blank.
When to close trades?
Close after 1 minute of news or use trailing stop to book profit.
What’s probability of win?
This strategy will be profitable only if actual data far from expected data or sudden one side spike. However there is no harm to take risk of 12 to 14 pips as gain could be 2 to 3 times of SL. There is no technical or fundamental knowledge required for this type of trading strategy.