Does anyone frequently trade binary options and if so any tips/ advice to give before I start testing the water?
IG/Nadex are a bucket shop. Binaries have spreads up to 7%. Imagine trading stocks or futures or even options with a 7% spread. Its a con.
What about sites like www.anyoption.com. It seems more simple and transparent than nadex. Any experience on it?
I've been using NADEX and Deriv.com for my binary option trading for a number of years, though at present, I only use NADEX for live trading, seeing as how I relocated back to the USA ten years ago (in 2014). But today, I just deleted virtually all the lower-time-frame chart setups I've been testing with the exception of one or two due to my having arrived at what I regard as my definitive configurations. This means that my day trading protocol has become routine, which is what prompted me to see if there was an ET thread dealing specifically with binary options. Having gotten (from my perspective) successful in-the-money binary option trading under my belt, I now want to turn my attention to doing the same with out-of-the-money contracts. I'm not saying that I can...only that I wish to make the effort, given that this does constitute an even more profitable approach to trading (theoretically, at least). My plan is to use my Deriv.com demo account to test my ideas, which will be based on trading forecast models that, in my view, very much comport with reality. If I do accomplish what I'm setting out to achieve, I will of course take the results and begin utilizing them with respect to my live NADEX and traditional OANDA Forex accounts, and possibly move back overseas so that I can begin trading it live in my Deriv account as well (which has a much more favorable payout structure than NADEX).
First, I propose dividing price action into three support/resistance levels. I'll call them: A. moderate, B. intermediate and C. extreme. Note that when the asset is in consolidation/accumulation (i.e., is neutral or sidewinding), candlesticks tend to bounce up and down between the moderate support and resistance levels. When trending, candles tend to "ride" the moderate or intermediated zone of support/resistance. Only rarely does price veer off into the extreme region, and on this chart at least, never does it venture beyond that.
My initial idea is to trade reversals and continuations in the 3½-hour price flow. The indicators of such events are as follows: The one-hour price flow channel will transition from "riding" the upper or lower outer band of the adaptive 3½-hour envelope at 0.40% deviation, to angling away from it until eventually making a U-turn in the opposite direction. Once this happens, enter positions as candlesticks cross to the other side of the 3½-hour baseline. Another potential trade opportunity occurs when the 60-minute price flow channel crosses the 3½-hour baseline on a trajectory opposed to the direction in which the baseline is sloping, then shortly thereafter forms a peak or valley above or below (as appropriate) the (standard) 3½-hour envelope at 0.12% deviation. (This will often correspond with candlesticks "tagging" the envelope at 0.14% deviation.) As it does, the 60-minute moving average will make a U-turn and head back toward the 3½-hour baseline. You would then enter positions as candlesticks crossed to the other side of the 3½-hour baseline. Still another possibility is entering positions when the 3½-hour baseline reverses direction above or below one of the 14-hour price range envelopes at either 0.30%, 0.70%, 1.00% or 2.00% deviation. (My guess is that expiry for any of these first three scenarios might ideally be scheduled for 10 hours after entry.) And finally, if the 60-minute baseline is ebbing and flowing along the underside of a bearish 3½-hour baseline, purchase a put contract when price pulls back to make contact with the upper band of the hourly price range envelope at 0.12% deviation. Conversely, if the 60-minute baseline is ebbing and flowing along the topside of a bullish 3½-hour baseline, purchase a call contract when price pulls back to make contact with the lower band of the hourly price range channel at 0.12% deviation. (My guess is that expiry for this fourth scenario might ideally be set at one hour from entry, or two hours at the most.) So then obviously, the key measures when it comes to tackling this challenge are going to consist of one, three-and-a-half, and fourteen hour indicators.