It’s harder now to trade the non-farm payroll. As you can see in the charts below, price moved up and down very fast in less than a few minutes. It doesn’t matter if a person long or short on EUR/USD during the NFP, all stop loss are hunted and taken out.
If you like, you can reply below with your experience or tips on trading the non-farm payroll.
I’m going to stay away from trading during the non-farm payroll.
agreed Cryptocurrency. It’s getting more and more difficult to trade during NFP. Market goes straight up and then suddenly straight down (or vice versa) just to get rid all sell / buy orders. Also, this movement can destroy your pending orders (sell stop / buy stop), if you have placed any and wait for the news to get some $$$. Unfortunately, lately the movement is not in one direction only. It’s really hard to get some profit.
This is the “Free Forex Trading Systems” forum and your headline is “Non-Farm Payroll trading Strategy”. But I can’t see any strategy. I agree that you have to be careful because of the NFP release. But that’s not a strategy. Avoiding some recurrent events is an advice, but not a strategy because there is nothing said about how to trade.
I will give you my strategy guys, it has worked for me for months, but like you said, since it’s really hard, my goal is NOT to trade the NFP. Most of the NFP days I don’t trade nor make a profit. However, when I do trade, I always make a quick profit.
I only trade when all and each one of the following conditions happend during NFP.
I have a very reliable mid-term forecast (I’m an Elliottician, and I always have in my mind the direction of the market I should trade).
During NFP, or during the following 5 minutes, the market made a strong movement AGAINST my forecast.
After 5 minutes, the movement against my forecast is completely over and the market is gently, not wildly, moving in my desidred direction.
I don’t enter a TP, only a trailing stop, or move the SL as soon as it has 10 pips in profit. If I make 10 pips in profit, I’m satisfied. However, I often do more when all these conditions take place.
Finally, I stay out of the market if only one of the described conditions does not happen. For example, if the EURUSD moves aggresively in my desired direction, I WILL NOT TRADE, that’s right. If there’s a rebound, it will be against me and I’ll get caught.
This method has also helped me overcome the huge slippage that takes place during NFP.
Final comment: From a fundamental point of view, if the described conditions apply, it means that:
Big banks, if they manipulated the price, have taken their profits and are out of the market.
Anxious traders who traded against me, already lost their money and are also out of the market.
With those two out of the market, if it moves gently in my direction, it’s a confirmation of my forecast. The strong movement against me didn’t change the market, but instead created an opportunity for traders who agree with my forecast to push the price in my desired direction.
And that’s all. Honestly, I never expect more from the NFP and if I don’t trade it, I’m happy with that.
