Big Profit When NFP with Pending Order
NFP or Non Farm Payroll is the most famous event for trading on news. Many traders have experienced hundreds of pips of profit from the non-farm payroll data. Trading during NFP is better to use charts on the M15 and M30 timeframes, because there is the potential for volatility to shrink at the beginning. On the other hand, traders still have the opportunity for traders to look for potential opportunities when market participants are considering whether they want to sell or buy when the NFP has just been released. The trend that is most likely to occur after the initial spike is the trend trying to be achieved by setting up the NFP trading strategy.
Actually this strategy can also be used for the EUR/USD pair, but this strategy is more suitable for the GBP/USD pair considering that the pair has a larger daily range than the EUR/USD pair. So of course with the GBP/USD pair the use of this strategy is much more potential. Anyway, if you want to change to a 5-minute chart, that's fine, but beware of false signals.
NFP Trading Strategy Rules
There are some rules of the game that you need to understand. It is highly recommended to comply with these rules so that your trading results are maximized.
a. 15 Minutes after the non-farm payroll data is released, stay calm and don't take any trading positions. In general, there is a large candle that appears at 8.30 – 8.45 AM EST, but just ignore the candle.
b. Wait for the inside bar to appear. The inside bar in question is a 15-minute candle where there are high levels and low levels, all of which are in the area of the previous candle.
There is a candle with a large size which is then followed by the presence of an inside bar. However, the inside bar does not always follow the appearance of a large candle. It depends on the volatility and how strong the initial push was. Traders still have to wait for the inside bar to arrive until several candles appear. The waiting inside bar also doesn't have to be there after the big candle appears, the most important thing is that there is a visible inside bar.
c. In this strategy, the high level and low level contained in the inside bar are used as a booster. When the price rises above the high inside bar level, immediately open a long position, but otherwise open a short position.
d. Place a stop loss of 30 pips from the initial position, or it can also be placed in the low level area (bottom) when you want to open a long position. However, stop loss should not exceed 30 pips.
The inside bar that accompanies the large candle is used as a trigger. After the first inside bar, there is a second inside bar and so on. The reason is in this condition the range is happening. So wait until the breakout of the range then open a position. For the inside bar that is used as a trigger, it doesn't have to be the first inside bar, it can also be the second or third inside bar.
After the price breaks out of the range above 1.61865 in that area there are long positions. More precisely located about 1 to 2 pips above the high level on the inside bar. The initial stop loss is in the form of a set of broken points that are below the low level on the inside bar. Now this stop loss is then shifted to the top so that it can be in the right position with the low inside bar with the aim of minimizing the risk so it is only 25 pips.
For setting this NFP strategy, traders are not required to wait until the price bar that breaks out of the inside bar is full or in other words closed. If the high/low level inside the bar can be penetrated, then the trader can open a position.
e. If you have entered a position for 4 hours, immediately exit the position. So as soon as it starts, the trend will continue for about 4 hours. Let's say a trader enters a position at 10:00 AM, it means that the position exits at around 14:00 PM, but at 2:45 PM the trader must try to exit the position after being on this Farm Payroll. This is because there are other factors that can have a big influence on prices. While the impact of the NFP itself has disappeared.
f. It is not recommended to open a position more than 2 times after NFP because prices often move very randomly (choppy).
g. So that the trader's profit does not disappear if there is a trend that reverses direction, it is better to use a trailing stop. Although it is not required, because basically the use of trailing stops is only for profit protection. If you want to use it, move the stop loss towards the most recent low (for traders who opened long positions) / the most recent highs (for traders who opened short positions).
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