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Nadex - Best binary options strategy?

  • #1
  • First Post: Edited Feb 15, 2018 2:25pm Feb 6, 2018 1:01am | Edited Feb 15, 2018 2:25pm
Two years ago on January 2016 I attempted to trade on Nadex with my live account with a strategy that I picked up with a lack of analysis and I blew out my account and lost my initial investment. I was discouraged so I stepped out from the markets for a couple of months.

I've been back to observing the markets with a clearer mindset and have been building a strategy which i'm currently testing.

So, on Friday 2/2/18 I started a paper trading (demo) account to test my strategy.

I am posting my results Monday - Friday on this forum, so feel free to be an observer!

Note: I am only doing this to document my strategy.

Trade style:
Only 5 minute binaries based from 1 minute charts.
  • #2
  • Edited 1:42am Feb 6, 2018 1:14am | Edited 1:42am
Friday 2/2/18 -

Trades:
6 wins - 0 expense (loss) = $265.75 profit after fee's

I attached the screenshot of the transaction history for 2/2/18, look for the "Settlement Payout" line highlighted in yellow.
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: Screenshot4.png Size: 41 KB
  • #3
  • Edited 1:44am Feb 6, 2018 1:22am | Edited 1:44am
Monday 2/5/18 -

Trades:
6 wins - 0 expense (loss) = $263 profit after fee's

I attached the screenshot of the transaction history for 2/5/18, look for the "Settlement Payout" line highlighted in yellow.

So... 12 trades so far, with 12 wins and 0 losses ($528.75) in two day's w/ minimum contracts? Not bad!
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 93 KB
Click to Enlarge Name: Screenshot2.png Size: 27 KB
  • #4
  • Feb 6, 2018 6:31am Feb 6, 2018 6:31am
I have tried nadex before and have faliled every single time. I like options of the money potential and also the lose. Whats your strats?
  • #5
  • Feb 6, 2018 10:29am Feb 6, 2018 10:29am
Nice work. Looks like you're basically waiting for your signal and then going for as close to ATM and holding for expiry? I'm going to PM you about a few nadex things I'm building or have built.
  • #6
  • Feb 6, 2018 10:39am Feb 6, 2018 10:39am
Tuesday 2/6/18 -

Trades:
8 wins - 3 expense (loss) = $278 profit after fee's

Note to self: of the 3 expense trades, one trade was not a valid entry. I should have exited the trade as soon as I noticed that it was not valid, I will exit any trade that is not a valid entry.
On the good side, my performance was great as I stood focused and followed my rules with 10 trades with valid entries out of 11 total trades.
Attached Image(s) (click to enlarge)
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  • #7
  • Edited 12:28pm Feb 6, 2018 10:46am | Edited 12:28pm
Quoting Superflex
I have tried nadex before and have faliled every single time. I like options of the money potential and also the lose. Whats your strats?
Hi Superflex,

Thanks for taking a look through my post. I know exactly how you feel because of the potential and that is what brought me back to it and made me more careful in building my strategy.

I can't give out my strategy as i'm still testing it, but I will say this, I only trade 5 minute binaries and only trade for 1 hr... or 1hr and 30 mins max.

My trading session is within an average of 45 mins.
  • #8
  • Feb 6, 2018 10:48am Feb 6, 2018 10:48am
Quoting JR97
Nice work. Looks like you're basically waiting for your signal and then going for as close to ATM and holding for expiry? I'm going to PM you about a few nadex things I'm building or have built.
Thanks!

Yes I look for an ATM or ITM strike, I hold till expiration unless the signal turns then I will exit the trade at a loss.
  • #9
  • Feb 6, 2018 10:52am Feb 6, 2018 10:52am
Nice job. I don't do well with the intraday binaries except during slow periods when I'm setting up Iron butterflies or ITM premium collection trades. But it looks like you've got it dialed in.

Do you ever do the dailies or weeklies?
  • #10
  • Feb 6, 2018 11:03am Feb 6, 2018 11:03am
Quoting JR97
Nice job. I don't do well with the intraday binaries except during slow periods when I'm setting up Iron butterflies or ITM premium collection trades. But it looks like you've got it dialed in. Do you ever do the dailies or weeklies?
I don't do weeklies or dailies. I personally like fast action and having more opportunities to place trades so 5 min binaries work for me.
The number of trades I would place with dailies and weeklies, it would take me a week to a month to place an amount of trades that I could do in one day with 5 min binaries, so it's too slow for my way of style.

The risk is much higher though... to cut a losing trade is harder than dailies/weeklies.
  • #11
  • Feb 7, 2018 11:13am Feb 7, 2018 11:13am
Wednesday 2/7/18 -

Trades:
8 wins - 6 expense (loss) = $45.5 net profit

Notes:
Trading session was 1 hr and 20 mins long today.
Mentally, I felt nervous this morning and I believe it showed with how I felt during my session. I started off great with focus and being calm even though I felt nervous and in the first 30 minutes I was 4 wins and 1 loss... then I got nervous, blurred out and the next 4 - 5 trades were losing trades. Had to stop for a several minutes and recollect myself, and I finished the day in profit. Called it a day, will journal what went wrong and improve tomorrow.

Out of the 6 losing trades, 3 of those trades were 100% invalid and impulsive trades. I did not get out of those invalid trades as soon as I entered them, so I need to reflect and focus on being discipline to my strategy and rules.

Self ratings:
Performance - 65%
Discipline - 70%
Self Awareness - 60%
Attached Image(s) (click to enlarge)
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  • #12
  • Feb 9, 2018 1:21pm Feb 9, 2018 1:21pm
Thursday 2/8/18 -

Trades:
22 wins
24 Expenses (loss)
3 break even
Total: -$212 net loss

Notes:
Trading session was 2 hrs long.
Had a bad mood and negative state of mind since waking up due to personal problems.
I over traded when I should have stopped early, or not traded at all.
Good that i'm still in practice and observing and trying to fix my personal errors.

I will not post Nadex history screen shots for this day because it was too many trades so it makes too many pages to post.

Self ratings:
Performance - 30%
Discipline - 20%
Self Awareness - 20%
  • #13
  • Feb 9, 2018 1:22pm Feb 9, 2018 1:22pm
Friday 2/9/18 -

Trades:
17 wins
14 expenses (loss)
1 break even
Total: $111.50 net PROFIT

Notes:
Trading session was 1 hr long.
Calmer and relaxed state of mind than yesterday, but yesterdays performance gave me a bit of anxiety to trade so I felt like I forced a few trades.
Today I noticed a pattern in my strategy that works great and is what makes most of my winners, I will focus on only those.

I will not post Nadex history screen shots for this day because it was too many trades so it makes too many pages to post.

Self ratings:
Performance - 55%
Discipline - 65%
Self Awareness - 60%
  • #14
  • Feb 9, 2018 1:45pm Feb 9, 2018 1:45pm
I made a Nadex transaction importer for Excel that consolidates trades to a more readable format, if you're interested.

Transactions exported to csv: http://content.screencast.com/users/...ion_export.GIF

Transactions imported to Excel and parsed: http://content.screencast.com/users/...ion_parsed.GIF

Transaction summary: http://content.screencast.com/users/...on_summary.GIF
  • #15
  • Edited 4:23pm Feb 9, 2018 1:48pm | Edited 4:23pm
Results for week #1:
58% win rate

Note: all trades this week were placed with 1 contract.
Attached Image
  • #16
  • Feb 9, 2018 1:51pm Feb 9, 2018 1:51pm
Quoting JR97
I made a Nadex transaction importer for Excel that consolidates trades to a more readable format, if you're interested. Transactions exported to csv: http://content.screencast.com/users/...ion_export.GIF Transactions imported to Excel and parsed: http://content.screencast.com/users/...ion_parsed.GIF Transaction summary: http://content.screencast.com/users/...on_summary.GIF...
Awesome JR! i'll definitely check it out later today when I get off work
thanks!
  • #17
  • Feb 14, 2018 12:52am Feb 14, 2018 12:52am
Monday 2/12/18 -

Trades:
10 wins
18 expenses (loss)
2 break even
Total: $484.75 net loss

Notes:
Horrible performance, revenge traded, forced trades, buying two strikes on a single trade. Went way over my max daily drawdown.

Not posting Nadex history screen shots for this day because it was too many trades so it makes too many pages to post.

Self ratings:
Performance - 20%
Discipline - 20%
Self Awareness - 25%
  • #18
  • Feb 14, 2018 12:55am Feb 14, 2018 12:55am
Tuesday 2/13/18 -

Trades:
18 wins
12 expenses (loss)
Total: $155 net PROFIT

Notes:
Performance and preparation was not great, but I tried to be more patient than yesterday. I still keep forcing trades when I should not do that.
I will make a checklist to follow per trade and start grading each trade.

I will not post Nadex history screen shots for this day because it was too many trades so it makes too many pages to post.

Self ratings:
Performance - 35%
Discipline - 30%
Self Awareness - 40%

  • #19
  • Edited Feb 15, 2018 2:11pm Feb 14, 2018 3:00pm | Edited Feb 15, 2018 2:11pm
Wednesday 2/14/18 -

Trades:
13 wins
11 expenses (loss)
2 break even
Total: $170.75 net PROFIT

Notes:
I was more disciplined with following my entry rules today. I did not force trades and was patient for the price action to set up an entry.
Changed my R/R to ATM (48 buy or 52 sell) price and had better returns.
Learned to not force any trade, and get an ATM price.

I will not post Nadex history screen shots for this day because it was too many trades so it makes too many pages to post.

Self ratings:
Performance - 75%
Discipline - 85%
Self Awareness - 65%
  • #20
  • Feb 15, 2018 2:04pm Feb 15, 2018 2:04pm
Thursday 2/15/18 -

Trades:
10 wins
8 expenses (loss)
3 Take profit
Total: $249.75 net PROFIT

Notes:
Followed my rules for entry.
No forcing trades. Also took profit when I felt nervous on a trade.
Took 2 OTM trades that were my best Ideal set up.
When trade reversed on me, I set a SL at 12 or 78.

Self ratings:
Performance - 85%
Discipline - 85%
Self Awareness - 75%
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: Screenshot2.png Size: 78 KB
Click to Enlarge Name: Screenshot3.png Size: 77 KB
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