Forex Strategy for NFP (NonFarm Payrolls — Employment outside the agricultural sector) — is entirely based on the indicator forex called Sentinal Index — a sort of «index of U.S. dollar, established on the basis of motion 7 major currency pairs involving the U.S. dollar (GBPUSD, EURUSD, AUDUSD, NZDUSD, USDJPY, USDCAD, USDCHF), which averages their daily movements to determine the general direction of the American dollar.
Although the forex strategy and works only 1 time per month (after NonFarm Payrolls — which is known to go on the first Friday of the month at 13:30 GMT), but with the right to use it, and well-established trend — you can earn the bulk of profits for the whole month .
Percentage of closed winning trades on the forex strategy: approximately 80% over the past 4 years.
The number of earned points: 10,467 for 4 years (or an average of 215 per month).
Will not go into a description of the indicator forex Sentinal Index, I think it’s not so important, anyway no one will try to test it (very heavy work),
we consider the best trading rules on forex strategy NFP:
1. Draw a rectangle or «box» (ie, draw a horizontal line at the maximum and minimum) over the range between 8:30 EST (13:30 GMT) on Friday — that is, time when they came out data on macroeconomic indicator NFP (Nonfarm Payrolls) and 00:00 EST (05:00 GMT) the following Monday.
2. Then apply to your 30-minute schedule of any given currency pair (with USD) simple moving average with a period of 336 — SMA (336).
3. If the candle is the candle goes beyond the «box» and closes above or below it on a 30-minute price chart, open up a bargain, but only if it supports the SMA (336) (the price is above 336 SMA for the transaction to purchase or below 336 SMA for deal to sell) and if the indicator Sentinal Index — is above its 7-day SMA. If both of these indicators do not reflect the forex price action, you should wait and open position as soon as forex indicators will point in the right direction — an example see figure below.
4. Open transactions, for example by 2 lots of 5% of the bill, whenever a stop loss of 100 points (risk of course is while 10% of the deposit. However, these percentages can be changed by you, I have only 5% as an example . You can quite limited, and 1%.) and wait for the moment, until the price will be at least 50 points. When the price went towards the conclusion of your transaction by 50 points — close one lot or 50% of your transaction (to pick up 50 points profit) and stop-loss of the remaining 50% of the transaction or in this case a lot, move to the breakeven point (at zero) .
5. Leave from the remainder of the trading position at the close of the candles on the other side of the moving average 336 SMA.
6. Possible and re-entry into the market if the price on the chart closed, respectively, above or below the maximum / minimum current and the previous trading week, and forex indicators (Sentinal and 336 SMA) support input.
The goal of this forex strategy is to make a trend which is present in the market, identify the most powerful movements, and «taking» them until they had become stale at the same time trading system leaves you 50 points on the closed case of false breakouts. Percentage of prisoners losing trades over the past 4 years was only — 19.6% of 100%, respectively were made 80,4% — of profitable trades.
For examples, see the picture (click on it so that it opens a new window):
Download forex indicator for MT4 forex strategy for NFP:
- Indicator Sentinal Index.mq4
- Indicator Sentinal Index_SMA.mq4
- Indicator Sentinal Index_SMA_modA.mq4
