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The $20 Dollars a Day Methodology using Nadex products

  • #21
  • Jun 30, 2019 8:00pm Jun 30, 2019 8:00pm
Quoting FxRetro
To continue showing life trade examples. This time I took an Out of The Money strike nadex Binary Option on GBPJPY at 137.40 for 61.25, expiring at 11pm ET. It had more than 3 hours until expiration but I wanted to make a quick trade to post it here. I did set up at TP at 39.25 but I decided to close it manually before and kept a profit of $17. All Yen pairs had a gap and I played the closure of that gap in the down side. I was a little late and couldn't get the contract a little cheaper. This time my total cost was $40.75.. {image} {image} {image}...
This trade lasted 14 minutes and the price of GBPJPY moved like 7 pips in my favor and gave me $17. In normal forex trading I would need 0.2 Lot, with a 500:1 leverage a margin of $40 to $50 and setup an Stop Lose of maybe more than 10 pips + spread + commission, the cost could have reached $70 to $80..
Swing with the tide, Surf with the waves!
  • #22
  • Jun 30, 2019 8:07pm Jun 30, 2019 8:07pm
Quoting FxRetro
To continue showing life trade examples. This time I took an Out of The Money strike nadex Binary Option on GBPJPY at 137.40 for 61.25, expiring at 11pm ET. It had more than 3 hours until expiration but I wanted to make a quick trade to post it here. I did set up at TP at 39.25 but I decided to close it manually before and kept a profit of $17. All Yen pairs had a gap and I played the closure of that gap in the down side. I was a little late and couldn't get the contract a little cheaper. This time my total cost was $40.75.. {image} {image} {image}...
The return on this trade was 41.71%. Not bad, right?
Swing with the tide, Surf with the waves!
  • #23
  • Jul 1, 2019 12:34am Jul 1, 2019 12:34am
Quoting FxRetro
{quote} The return on this trade was 41.71%. Not bad, right?
Good effort Fx Retro.
Regards.
  • #24
  • Jul 1, 2019 9:46am Jul 1, 2019 9:46am
Quoting goodways100
{quote} Good effort Fx Retro. Regards.
Thank you Goodways. Here, Im just trying to make traders to get to know a little bit of another way to trade forex, commodities, indexes without much margin nor much money.
Swing with the tide, Surf with the waves!
  • #25
  • Jul 1, 2019 9:54am Jul 1, 2019 9:54am
Today I finish with a lost of -$5.00..
I wanted to do the Touch Bracket to show them. At 9am NY time, The indices Nasdaq, S&P500, Dow Jones and Russell2000 made a huge gap upward. Then I decided to play to the down side. At mornings I don't have much time so it had to be quick. I amde the mistake of closing the trade too early when went against me and didn't give it time to develop properly. So I took a first lost of around -$54.00. But we have the choice to reenter, after we accept the fact that we made a mistake, learn from it and let it in the past, to continue walking forward. So I did short again a couple of times to recover part of the first lost. As soon as I got some and noticed that I was overtrading, I closed the platform and the charts. This is part of our self discipline.
Swing with the tide, Surf with the waves!
  • #26
  • Jul 1, 2019 9:59am Jul 1, 2019 9:59am
Here are the images of Nasdaq100. Remember that in these products, we make some kind of boxes or rectangles to define the ranges and we can plan our trades according to them. The green horizontal line is where I placed the shorts in the 1H chart, I selected the last Touch Bracket because it gave me the cheapest risk. At first was $62 risk. Then the other trades gave me between $39 to $75 risk because I was scalping in the down side.
Attached Image(s) (click to enlarge)
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Swing with the tide, Surf with the waves!
  • #27
  • Jul 1, 2019 10:02am Jul 1, 2019 10:02am
Quoting FxRetro
Here are the images of Nasdaq100. Remember that in these products, we make some kind of boxes or rectangles to define the ranges and we can plan our trades according to them. The green horizontal line is where I placed the shorts in the 1H chart, I selected the last Touch Bracket because it gave me the cheapest risk. At first was $62 risk. Then the other trades gave me between $39 to $75 risk because I was scalping in the down side. {image} {image} {image} {image}
So, in 15 minutes I look for a better entry trigger, at the same time We can use boxes to define our TP distance from our entry point. Because the SL is already capped for the top (or the bottom) of the Touch Bracket range, I didn't have to worry about placing stop lose.
Swing with the tide, Surf with the waves!
  • #28
  • Jul 1, 2019 10:05am Jul 1, 2019 10:05am
[] I over trade today... An slap to my self as punishment. :-D
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Swing with the tide, Surf with the waves!
  • #29
  • Jul 1, 2019 2:40pm Jul 1, 2019 2:40pm
This method works mostly for new traders where they can start their trading without much hesitation about their investments.
  • #30
  • Jul 1, 2019 3:01pm Jul 1, 2019 3:01pm
The big problem with Nadex is the huge bid/ask spread on every trading instrument they have. If forces you to have 70%+ winning pcts, on avg, in order to win in the long-term. The amount you're trying to make per day has nothing to do with how Nadex has rigged their spreads for you to have to maintain an unreasonable level of long-term accuracy.

Best trading instruments are several of the e-mini futures: NQ, YM and RTY. You can have a 40% win rate and still achieve long-term success because they have very good volatility, trend well, and tight spreads during their regular trading sessions. If you cannot afford $500 margins per contract then trade their micro versions. Another great market to trade if you're short on funds is to trade the mini versions of the HSI or HHI on the Hong Kong Futures Exchange. They trade at $1.27 USD per pt. The HSI can move 200-300 pts in its first two hours of its morning session.

Yes, Nadex is a regulated trading exhange. No, you shouldn't trade there because you are at a very unfair advantage to succeed because of very large bid/ask spreads.
  • #31
  • Edited 5:58pm Jul 1, 2019 3:13pm | Edited 5:58pm
I hope this example image helps to understand better how are distributed the Binary Ladder strike prices and its values to Buy or Sell
Attached Image (click to enlarge)
Click to Enlarge Name: BO ladder.png Size: 31 KB
Swing with the tide, Surf with the waves!
  • #32
  • Edited 5:59pm Jul 1, 2019 3:26pm | Edited 5:59pm
Quoting CLTrader
The big problem with Nadex is the huge bid/ask spread on every trading instrument they have. If forces you to have 70%+ winning pcts, on avg, in order to win in the long-term. The amount you're trying to make per day has nothing to do with how Nadex has rigged their spreads for you to have to maintain an unreasonable level of long-term accuracy. Best trading instruments are several of the e-mini futures: NQ, YM and RTY. You can have a 40% win rate and still achieve long-term success because they have very good volatility, trend well, and tight spreads...
I have found larger Bid/Ask spreads on the binary Indices. Also, you know well that everybody have different approach when is about trading. Some people made small profits consistently looking between 2% to 10% return; Other people looks 20% to 50% return; other people wants 300% return per trade. Some people Scalp, other people prefers Swing Trading.. It all depends what you are trying to achieve.

They have different products, and we can choose the product that help us achieve our plan. Binaries are good for scalping, intraday trends or weekly Swing Trading; Spreads are good for intra-day trending; and Touch Brackets could be use it for Weekly Swing trading, scalping or intra-day trends. I can tell you that when I traded Forex, I had to set an SL of around 50 pips, even if the real risk was only 30 pips. all because We don't know how much the prices may spike at any point of time. I was taken out a lot of times even thought I was right about the direction of the price, just because I was too early or just a little bit late when the trigger signals the entry.

On Nadex I can plan my trades much better, without worry about Stops. At the same time We can plan more efficiently our Equity and all the lost that we can take in a row.
Swing with the tide, Surf with the waves!
  • #33
  • Edited 5:37pm Jul 1, 2019 3:34pm | Edited 5:37pm
Quoting FoIlko
This method works mostly for new traders where they can start their trading without much hesitation about their investments.
Yes, Exactly.... Even more sophisticated traders can set their own objectives with these products. What Im showing here it is just that we can make a salary for our self trading these products. It is just a matter of fallowing a plan, getting the right capital and have discipline to achieve consistency.

For example, after You understand the mechanics of the binaries, you will notice how simple they are and how we can profit from different angles. As I mentioned before, we have to be more aware of "Timing" because they have expiration.
Swing with the tide, Surf with the waves!
  • #34
  • Edited 5:38pm Jul 1, 2019 3:38pm | Edited 5:38pm
Quoting CLTrader
The big problem with Nadex is the huge bid/ask spread on every trading instrument they have. If forces you to have 70%+ winning pcts, on avg, in order to win in the long-term. The amount you're trying to make per day has nothing to do with how Nadex has rigged their spreads for you to have to maintain an unreasonable level of long-term accuracy. Best trading instruments are several of the e-mini futures: NQ, YM and RTY. You can have a 40% win rate and still achieve long-term success because they have very good volatility, trend well, and tight spreads...
Look, the good part of it, is that We can focus on only one asset. And depending on which of their products we choose, we can profit.
In may case I prefer Binaries at night or morning and Touch Brackets at mornings because I like to take quick trades, achieve my TP and shutdown the computer.
Swing with the tide, Surf with the waves!
  • #35
  • Edited 5:40pm Jul 1, 2019 4:05pm | Edited 5:40pm
Here we have the Margins and Tick Value on the new Micro Futures Contracts of the Indices. With the amount of money that we need as margin just to open an intraday trade, plus commission, plus stop lose, plus the move the price must make in order to achieve $20. On Nadex touch brackets we can trade just the same way as micro futures and the tick value on nadex is higher. It is true that the spread is bigger, around 2.00 to 3.00 of the index. However those ticks are covered very quickly by the indices. Or we can do the binaries... On Nasdaq100, a 2 hour expiration Spread has a range of $100 value. We can risk $50 or even less.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Micro Margin.png Size: 19 KB
Click to Enlarge Name: Micro Tick Value.png Size: 21 KB
Swing with the tide, Surf with the waves!
  • #36
  • Jul 1, 2019 4:19pm Jul 1, 2019 4:19pm
To me, the big difference in nadex is that we can decide more easily how much we want to risk and how much we want to earn. One person can decide to risk only $30 per trade and make $30 , that is a return 100% profit or just risk $20 and make $20; or risk $40 and get $10 which is 25% return. Or risk $150 to get $300. It all depends on the individual trader.

What I can say is this. If we have a job were we are earning, let's say $4,000 a month. How easy is to make it in the Futures, Stock, Traditional Options, or Forex when you only have $2,000 or less in capital? Think about it...with nadex products is more easy to achieve that. Im not defending nadex, Im just exposing the advantage that we can have as traders.
Swing with the tide, Surf with the waves!
  • #37
  • Jul 1, 2019 5:25pm Jul 1, 2019 5:25pm
Ok, here I show this is better than those Micro Indices Futures. It is an example base on my first entry on Nasdaq100 touch bracket that I posted earlier. We are talking about 1 contract only all the time.
Attached Image (click to enlarge)
Click to Enlarge Name: Ejemplo TB.png Size: 75 KB
Swing with the tide, Surf with the waves!
  • #38
  • Edited 9:07pm Jul 1, 2019 7:59pm | Edited 9:07pm
Today AUD pairs may experience high volatility.

Before Tokyo opens I took an In the Money sell on AUDUSD at 0.6966 for 22 with 23 min to expiration. My cost was basically $78 (100-22= 78). The contract expired with AUDUSD at 0.69645 under our Strike, giving me $22-$2 commission= $20.00 (and small move of 1.5 pips gave me $20.00 at expiration)... I also placed an OTM on GbpJpy for $26 but decided to close it with small lost of -$6.00 because I would be over trading again. So my total profit was $14.00
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Swing with the tide, Surf with the waves!
  • #39
  • Jul 2, 2019 8:16am Jul 2, 2019 8:16am
You can show winner after winner. But, like I said, if your avg win rate drops below 70% long-term, your account will eventually be wiped out.

Is Nadex still doing that nice little trick where, if you're in-the-money within the last minute, the bid/ask go crazy and you can have a winner up until expiration but if you try get out, you'll take a loss? You know why that happens? It's because the market makers run the show and when they're not supporting price, you can't get out of the trade early close to expiration.

All options are designed by complex formula. Those prices they're flashing around are representing your chances of winning/losing at any given point in time. The bid/ask is skewing the chances against you by 3-5% more PER SIDE. So your chances of winning on top of the option calculation actually DROPS by another 6-10%. There's a grossly unfair slippage involved here.

I'm just stating facts in an effort to try and help you understand what's really going on, before you have to find out the hard way.

Your best alternative is to save your money until you have an adequate level of margin to be able to trade the excellent futures contracts I recommended you follow. There's no better market for an individual trader than intraday futures trading: wonderful volatility, excellent reward to risk ratio opportunities with just mid-level winning pcts (40-60%) necessary to succeed long-term.

Another fact that all traders have to face in their trading is that, regardless of the winning system being traded, in the long-term, there is ALWAYS an inverse relationship between the avg winning pct vs the avg win / avg loss. That's the true math of any trading market. The last thing you need to add to that as a detriment is a wide spread to get in and out of your trades.

[Forex really is too choppy in comparison to the futures instruments I mentioned in my last post. That's why you see most here going to longer-term charts. Then, their accounts get blown out with their stops being too wide or doing ridiculous things like Martingale trading. Your thread's intention was to present an idea where loss could be limited up-front and small gains could be made on a regular basis, but unfortunately, binary options sound far better what they really are in practice.]
  • #40
  • Jul 2, 2019 9:14am Jul 2, 2019 9:14am
Quoting renkotop
What is the strategy?
the strategy is to open a Nadex account
Market Makers Tax Guy...
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