It looks like CADUSD is going to hand me my first loss since beginning this experiment. I was going to purchase two (2) EURUSD binary option in-the-money call contracts to minimize the blow, but the reward-to-risk ratios were so unbelievably horrible that it wouldn't have made an ounce of sense to do so.
Applying the insights from this Nadex Trial to a traditional Forex brokerage account yielded some rather promising results for me yesterday. Unfortunately, I was unable to apply the insights to the Nadex account itself because almost every time I log into it, the platform isn't responding.
I trading Nadex for 2 years now and have not seen any profits yet although i win on OTM 2 Hour expiry im betting 87$ to 100$ to for 10 contracts = 900$ potential profit Two hour expiry. I won sometimes but not consistent and now i just thought of Trading the spread options 5 Hour expiry. I open up my 1hr chart GBP/USD during London open and just bet on it id bet 90$ to 120$ depending on how much per contract. Spread profit is base of every tick or Pips Ex i bought 10 contracts thats 10$ per tick/pips my set up is Buying at 9th andle to 14th Cancle Open Period separator on 1hr chart you can measure the distance starting from the Vertical period separator line using gat corsair. The 9th candle is magical for me coz it moves Consistenly all i do i hope that it goes my way. How i trade is like this ‘okay heres the 80$ go make me some 300$ ‘ but price gotta go 30 pips or more if i get lucky 50 pips to make it worth risking 80$
Binary options are a real pain because even if you have the direction right, the asset has to move within a certain amount of time or it doesn't matter. You still lose if price doesn't get to your target before expiry.
I suspended this "study" because the Nadex platform was so unresponsive, but I'm trading on a newer laptop now, and given that I just wrapped up finalizing my methodology for using the Dynamic Probability System to trade foreign currency pairs, I figured I'd walk it over to the major indices to see how well it might adapt to another asset class provided I don't run into the same problems trading via Nadex that I was having previously. While I'm waiting for the opening bell of tomorrow's New York session, I purchased AUDUSD and EURUSD call contracts with approximately 20 hours left before expiry to provide plenty of time for the trades to develop during which I will attempt to exit the positions early with a profit.
I had the perfect opportunity to exit AUDUSD early 40 minutes ago when the rate came to within one pip of hitting my take profit target, but unfortunately, I was taking a nap at the time...
Even though there is a good chance AUDUSD will expire in-the-money, because it is currently experiencing resistance at 0.7237 and I am about to retire for the night, I went ahead and locked in the available profit at $13.00 to at least partially recoup my potential loss from EURUSD. Hopefully GBPUSD will expire in-the-money to make up the rest.
I purchased a Wall St 30 (DJI) call contract with a strike price of 24440 based solely on statistical probability as calculated by a forecast model that plots 24437.67 as the most likely daily low... After waiting just 13 minutes I could now sell my single DJI contract for $25.00 and be done with it. It looks like the potential for making some fast money is much greater purchasing index derivatives through Nadex as opposed to Forex derivatives or trading foreign currency pairs through a traditional broker. UPDATE: I went ahead and exited the DJI position early, selling the Wall St 30 contract for roughly $30.00.
I purchased a US Tech 100 (NASDAQ) put contract with a strike price of 6700, again based solely on statistical probability as calculated by a forecast model that plots 6707.56 as the most likely daily high. I later purchased two US 500 (S&P 500) put contracts with a 2679 strike price more-or-less following the same logic.
Exited S&P 500 for about a $30 gain, but I think that was a mistake in that I purchased 2 contracts, so I should have waited until my profit was at least $60 instead! UPDATE: The S&P climbed back up in the neighborhood of 2677 so I just purchased two more put contracts with a strike price of 2682. Hopefully I can get in on some of the potential profit I left on the table earlier.