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  • #10,281
  • Feb 25, 2014 12:45pm Feb 25, 2014 12:45pm
Thanks PipKiller, I may have to read that a couple of times...I understand options etc, but the math.

Anyway, if you could do that with a much smaller account, it may be worthwhile looking at to supplement this strategy.

H
  • #10,282
  • Feb 25, 2014 12:58pm Feb 25, 2014 12:58pm
Quoting PipKiller
{quote} The key is to develop something that you understand and can execute. I'm going to draw up a chart in a couple minutes to give you an idea of what I did.
I also "straddle" but I don't use options. You are correct, with high volatility this is a great strategy. I thought of this on my own and I had no idea it had an official name. It's good to know my imagination is leading me in the right direction. LOL.

Which broker do you know of that offers options?
  • #10,283
  • Feb 25, 2014 1:37pm Feb 25, 2014 1:37pm
Quoting HannesJoub
PipKiller, Moonie, many thanks for the answers and the time that you took to write them. @Fx3422271, will look forward to those news events Will probably setup a small trade according to PA to see how it goes, however, my broker has HUGE spreads (50 pips plus) on these pairs, even during the major sessions...so will see... @Everyone, anybody else looking forward to GBP news tomorrow? Can we compare opening positions again? Cheers, it's slowdown time for me here...all else fails, will see you all tomorrow morning again (ZA time). H
Ill be trading the UK GDP figure tomorrow H. 09:27 I'll be placing a long on the GU (+6 pips) and a short on the EU (-6 pips). 10 pip stop, 40 pip TP.

  • #10,284
  • Feb 25, 2014 2:40pm Feb 25, 2014 2:40pm
Quoting PipKiller
{quote} Here's what I did for a straddle on GBPUSD. 100 positions each direction. Straddle is a good strategy for high volatility. Not good for quiet markets that ain't moving. Enter when it's quiet and you expect volatility soon. 9AM - 11am Bull box spread 1.6710 - 1.6860.... Entry price 1.6719 Entry 1.6719 - Floor 1.6710 = 9 pips... My max risk 9 pips = $900 + $9 fee. $909 is what it cost to buy this option. I can't be stopped out, whipped or slipped and my risk is never more than the price of the option which was $909 even if the trade goes against...
I used to trade nadex, condors, butterflys, iron butterflys etc. The bull and bear spreads as well. I also used to trade expiration's and do premium collection. I think it's easier to be profitable on the spot side. JMHO. Darrell Martin is the pitch boy for nadex. I have a clear understanding of how they come up with settlement......however nadex is a true market maker as it is a derivatives exchange.
  • #10,285
  • Feb 25, 2014 2:53pm Feb 25, 2014 2:53pm
For all you newbies who are still "Discovering"; get prepared for lift off at 8:30 GMT (SEK) and 9:00 GMT (NOK).

Inserted Video
  • #10,286
  • Feb 25, 2014 3:01pm Feb 25, 2014 3:01pm
Quoting Fx3422271
For all you newbies who are still "Discovering"; get prepared for lift off at 8:30 GMT (SEK) and 9:00 GMT (NOK).
myfxbook calender is showing Norway Retail sales on Feb. 28 but tradingeconomics shows tomorrow. Who is right?
  • #10,287
  • Feb 25, 2014 3:05pm Feb 25, 2014 3:05pm
Quoting canforex
{quote} myfxbook calender is showing Norway Retail sales on Feb. 28 but tradingeconomics shows tomorrow. Who is right?
Norway Labour Force Survey is Feb 26, 09:00 GMT.
  • #10,288
  • Feb 25, 2014 3:10pm Feb 25, 2014 3:10pm
Quoting Fx3422271
{quote} Norway Labour Force Survey is Feb 26, 09:00 GMT.
I meant Sweden Retail Sales.
  • #10,289
  • Feb 25, 2014 3:16pm Feb 25, 2014 3:16pm
Quoting canforex
{quote} I meant Sweden Retail Sales.
I believe that MYFXBOOK is WRONG.
  • #10,290
  • Feb 25, 2014 4:29pm Feb 25, 2014 4:29pm
I think that something wrong is going on here. Some of you guys try to reinvent the wheel, not a good sign.
  • #10,291
  • Feb 25, 2014 4:53pm Feb 25, 2014 4:53pm
Quoting Lukaszmiami
I think that something wrong is going on here. Some of you guys try to reinvent the wheel, not a good sign.
Is your brain giving you the silent treatment today?

Attached is the last Norway Unemployment Rate release on 2014.01.29 @ 9:00 GMT.
Attached Image (click to enlarge)
Click to Enlarge Name: usdnokm15.png Size: 38 KB
  • #10,292
  • Feb 25, 2014 5:17pm Feb 25, 2014 5:17pm
Quoting PipKiller
{quote} Entry 1.6719 - Floor 1.6710 = 9 pips... My max risk 9 pips = $900 + $9 fee. $909 is what it cost to buy this option. I can't be stopped out, whipped or slipped and my risk is never more than the price of the option which was $909 even if the trade goes against me 100 pips which would be $10000. The most I can make is the ceiling at 1.6860 which is 141 pips ($14100) even if price goes higher than 1.6860 and I can exit at any time before the 11 am option expiration. If it is at a loss, you let it run out to expiration in case it comes back and you may even profit both ways.
Interesting thoughts. Which broker you use to trade options in this way?
  • #10,293
  • Feb 25, 2014 6:57pm Feb 25, 2014 6:57pm
Quoting Fx3422271
{quote} Is your brain giving you the silent treatment today? Attached is the last Norway Unemployment Rate release on 2014.01.29 @ 9:00 GMT. {image}
nice template man
can you send me as well?
  • #10,294
  • Feb 25, 2014 7:33pm Feb 25, 2014 7:33pm
Quoting HannesJoub
Thanks PipKiller, I may have to read that a couple of times...I understand options etc, but the math. Anyway, if you could do that with a much smaller account, it may be worthwhile looking at to supplement this strategy. H
It can be done with a smaller account. As little as a $100 account. If I only took 1 position instead of 100 positions, the risk/cost to enter the straddle would have been $22.18.

Quoting Fx3422271
{quote} I also "straddle" but I don't use options. You are correct, with high volatility this is a great strategy. I thought of this on my own and I had no idea it had an official name. It's good to know my imagination is leading me in the right direction. LOL. Which broker do you know of that offers options?
Only way to straddle/hedge a position with US brokers is with 2 different accounts. If you are talking about placing a buy stop above market and a sell stop below market that isn't a straddle, that is a box strategy and works pretty well in a quiet market to enter a breakout. When buy or sell stop is triggered, the other order becomes the stop loss. Easy to get whipsawed with it too.

Several used too offer forex options. When I Google US forex options now most everything that pops up is BS or overseas binary. NADEX is US exchange and CFTC regulated but only offers binary and spreads base on spot pricing. CME has currency futures options so some of the big brokers may offer them.

Quoting calderone
{quote} I used to trade nadex, condors, butterflys, iron butterflys etc. The bull and bear spreads as well. I also used to trade expiration's and do premium collection. I think it's easier to be profitable on the spot side. JMHO. Darrell Martin is the pitch boy for nadex. I have a clear understanding of how they come up with settlement......however nadex is a true market maker as it is a derivatives exchange.
Pretty easy to figure out he's pitching the product LOL. The more I read and research NADEX and test drive the demo platform, the more I like it. I'm thinking about putting $500 - $1k into nadex to test drive her live. Having not said anything really bad about them, would it be safe to assume that your experience wasn't too bad with them.

I like spot forex a lot but it just drives me insane when I get barely spiked out of a position and then have the displeasure of watching price go the other way right into what would have been my target. I've been wanting to get into options to hedge my positions so I could safely trade larger positions without a stop for a couple years now. Time to stop thinking about it and do something.

Quoting Lukaszmiami
I think that something wrong is going on here. Some of you guys try to reinvent the wheel, not a good sign.
I'm not reinventing it, I'm making my own wheel LOL.

Quoting canforex
{quote} Interesting thoughts. Which broker you use to trade options in this way?
Playing with NADEX demo account right now.
I don't care which way the market is going as long as it's going my way
  • #10,295
  • Feb 25, 2014 10:44pm Feb 25, 2014 10:44pm
Quoting PipKiller
{quote} It can be done with a smaller account. As little as a $100 account. If I only took 1 position instead of 100 positions, the risk/cost to enter the straddle would have been $22.18. {quote} Only way to straddle/hedge a position with US brokers is with 2 different accounts. If you are talking about placing a buy stop above market and a sell stop below market that isn't a straddle, that is a box strategy and works pretty well in a quiet market to enter a breakout. When buy or sell stop is triggered, the other order becomes the stop loss. Easy...
Nadex? No, nothing bad to say about them. Very straight group....just remember that they make the products/instruments you trade with them. You will understand what I mean when you try some premium collection trades. Darrel Martin has some videos on it. Please demo these before you go live. It's a blast doing this but don't fall for all that junk DM sells through apex investing. lol They do have a decent scanner......haha! Been there and done that. Good luck, just ease into it.
  • #10,296
  • Feb 26, 2014 12:57am Feb 26, 2014 12:57am
Morning everyone, have a good, good day.

Cheers

H
  • #10,297
  • Feb 26, 2014 1:25am Feb 26, 2014 1:25am
I have noticed that sometimes some pairs, especially AUD, moves far earlier than their news release...I have seen on occasion that the move is sometimes 30 mins before the actual news release. In todays case, it was AUD news that was low impact, but the market still moved around 40 - 50 pips depending on the pair, half an hour before the news was "officially" released...

Is there any workaround on this, or do we let it go?

Thanks all

H
  • #10,298
  • Feb 26, 2014 1:49am Feb 26, 2014 1:49am
Quoting PipKiller
{quote} Yes, but with options. Have a bull and bear box straddle on both GU and EU
curious, what kinda options do you use pipkiller? besides Interactive brokers I've struggled to find appropriate brokers that don't trade binary or stocks
  • #10,299
  • Feb 26, 2014 2:31am Feb 26, 2014 2:31am
Quoting calderone
{quote} Nadex? No, nothing bad to say about them. Very straight group....just remember that they make the products/instruments you trade with them. You will understand what I mean when you try some premium collection trades. Darrel Martin has some videos on it. Please demo these before you go live. It's a blast doing this but don't fall for all that junk DM sells through apex investing. lol They do have a decent scanner......haha! Been there and done that. Good luck, just ease into it.
I appreciate your replies on the experience. No diving head first with big lot size on real money when I'm testing and trying new things, I'm gonna dip a toe in and see what the temperature is first. When I'm using a new broker and platform I learn my way around the platform on demo clicking every button I can find without worrying about mistakes costing me money.

I test strategies with real money and the smallest lot size. IMHO It's the only way to truly test a market/broker strategy etc.
I don't care which way the market is going as long as it's going my way
  • #10,300
  • Feb 26, 2014 2:34am Feb 26, 2014 2:34am
Traded the SEK news, had the direction correct, but my broker spiked the spread from 13 pips to 66 pips, which took out the SL and now I watch it go my way (170 pips and counting, which, as proven earlier translates to less than it sounds, but still)

I think that it is tradable, just in a different way because the dynamics of the pairs traded are different.

So, for now I think I will stick to the original plan until I have that down pat...

H
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