Nadex 2 hour trade strategy Newest to oldest videos
Nadex 2 hour Trade Strategy 05 | consolidation trading strategy ( May 19 2019 )
In this video I am back with another Nadex 2 hour Trade. This time I am trading as the market is in a consolidation period on Sunday before the London open. I got in on a ITM sell as there was a push against the longer term down trend. when the market is consolidating with only a little momentum it is not time to trade a bracket so that is why I am doing this ITM binary options on Nadex as I see strange behavior ( volatile push up in a consolidating market that is drifting down )
A: Time of the trade: This was a Sunday trade before the London open. So the market was consolidating with a slow drift to the downside. I saw low volatility in the price action for hours and I thought it was because no one was willing to go and buy before the London open where most people will trade this forex pair ( EUR/USD). This is sort of a time based trade that can recur on Sundays as the forex markets start the week after a series of Down days.
B: Determine a Bias: Is the market trending up or Down on the given time you will be in the trade. I am using the Channel surfing template for a birds eye view of the day it is free on our website.
C: When you determine a Down Bias then look for ITM above where the market is on a push up. When you determine an Up bias then look for ITM trades below where the market currently is on a push down.
NOTE: I determined a down bias and got in on a push up in this video
D: Price was good for me: I set an order for a sell at $21 and it got filled. I wanted a strike above the recent wicks at that price. The wicks were below the strike and the top of the average high prices for 6 hours was below that strike. Look at the Channel Surfing template those red / Blue moving averages of the high and low. Again I got in on a volatile push up in the middle of a consolidating market before London.
E: Trade with the longer term trend: This is the same market that sold off all of last week on the daily and hourly charts. So the bears seemed to be still in control and I just needed it to stay that way for about 54 minutes or so.
Nadex 2 Hour Trade 04 ( May 16 2019 )
In this Nadex 2 hour trade I am doing a news trade riding momentum for a little twist on how I usually do these trades. I lost Audio on the entry of the trade but I salvaged the last few minutes of this live trade and I am going to talk in detail about how I planed this trade at the beginning. I am trying to help fellow traders know how to avoid and how to use news on your side when trading forex pairs on the Nadex platform.
A: I rarely trade around news but when I do then I like to look for strong trends on the longer term price action charts. If there is really a trend you will see it. If you do not see it yet then wait and do not force the trade. We had been having nice down days all week. This may mean some of the report was priced in but when momentum keeps flowing in the same direction after the report then you are not just trading a news pop alone. Instead you are following an established weekly trend with news on your side as well.
B: Wait for the news to get out of your way before entering.I had to wait for the high impact news to see how the market would react. Check on our site:
set it for your timezone and make sure you are not going to trade around news unless this is your intent to do so.
C: Understand the news: When you get in a trade and it goes against you. It helps to understand all the reasons that you got in. That is why I talk a little about correlations and fundamentals in this video. 98% or more of traders just ignore fundamentals and correlations. I explain the Base and quote of a currency pair and how the news will effect money flow out of Europe and into the USA on a day that the news plays out with bullish sentiment. This will make USA markets strong and banks moving money for large clients will sell Euro Dollar bringing that base side down. Banks and forex flows are at the top of the food chain and can help your trade even if it is a short term trade.
D: I was trading the momentum and had to wait at least half way into the hour to get the news so this means I was only in for like 20 minutes or so. When I am trading momentum I want to get in closer to expire time and just ride that last bit out, I want to see the behavior and be sure it will hold for the remainder as best that I can do so.
E: Pricing: Notice that on this bet in a live account I was only able to get in at $21.25 / contract and I really like shooting for $20 - $25 bets in a live account because I would sooner wait for confirmations of what I am trading around than to try and get those extra $5 - $10.
Please watch the video carefully and feel free to write if I covered something in the fundamentals of the news or price action that was not so clear to you.
NOTE: Channel Surfing Template Shown in the video can be Downloaded here Free
=========== Trade 03 ====
Hi everyone this is another Nadex 2 hour trade that I done in Demo this morning. I want to go over the basic approach that is used to find these setups but also I want to point out some of the differences that there will be from demo to live trades. You will notice that in this trade I was able to get $30.25 in Demo but at the same time that trade only had a potential value of $21.50 in the live account. This is why I said $20 to $25 / Contract is a good price in a live account for in the money Nadex in my opinion. Also I will talk about Volatility and why I did not want to take this trade live. Knowing when to sit on your hands and avoid close or losing trades is part of what will help you be profitable trading Nadex in the long run. Again here are the key points to this Nadex 2 hour trading strategy.
A: Determine a Bias: Is the market trending up or Down on the given time you will be in the trade. I am using the Channel surfing template for a birds eye view of the day it is free on our website here.
B: When you determine a Down Bias then look for ITM above where the market is on a push up. When you determine an Up bias then look for ITM trades below where the market currently is on a push down.
C: There should be 40 minutes to one hour left in the trade and I honestly think that closer to one hour will be better for the pricing.
D: Strikes should be above / Below the recent wicks: Not at but above or below the wicks by about 2 Pips minimum ( look at the price action in the trades I am sharing ) watch how close this trade is at the end because this is why we only take strikes above the wicks. Also the ITM ( In the money ) trade should be at $20 Minimum to about $25 potential profits when trading in a live account in my opinion. This pricing will also call you out of forcing trades and in the long run that will benefit your trading. Remember your In the money trades are the market maker or counter party's OTM ( Out of the money trades ) so you want them to pay you as much money as you can get for that trade don't you?
E: Know when to sit on your hands: Avoid low volatility in the markets because this can lead to tighter two hour trades ( even when you are in for one hour ). Avoid times when you do not think you see a clear trend or cycle in the markets. Don't force a trade instead let the market breakout and then fade or take the strong breakout that is shaping up after a squeeze in the price action. Breakouts will usually move 15 - 20+ Pips before they start flattening out and fading so be patient like I covered in this video. Avoid trading when there is news coming before your trade expires. Check on our website first to be sure there is no news in your way.
Link to the news on our site:
F: Always set a take profit for 70 - 80% of the potential profits there is in the trade. You do not want to be sitting there around the end with a tight trade when it is easier to take what the market gives you and benefit from the fact that these are tradable.
========= Nadex Trade 2 ====
This is another video on Nadex 2 hour trades. In this video you can follow along with me as I am doing a live trade on the EURUSD. The trade had about 51 minutes in it when I entered the trade and I got in at a price that I wanted for an ITM ( Nadex In The Money ) Trade. I will be showing the trade setup and explaining the price action that I was trading around at the time I got in. Please note that I made a mistake saying $20 - $50 and what I meant to say was $20 - $25 actually.
Some Key points:
A) Look at the time: This trade was taken on the EURUSD during the first 2 hours of trading in London ( very late at night my time ) this is where a majority of the trading of this pair will take place and that is when the market can move either sharply or out of your favor fast ( But it is great when it moves in your favor on a Nadex ITM ).
B) I will go over this breakout pattern and explain how I used the guides in Channel surfer to confirm and enter the trade.
C) I set a take profit that was 75% of the potential value of the contract and in about 21 minutes I got out because my working order was filled. I think it is important to look at the trade and how the market had to react in order for me to get out early like this but my point is that it can be done in a live account it is just that you need that extreme volatility in your favor ( Vega in options Greeks ) with all that time ( Theta in options Greeks ) remaining. I would rather show visual people then talk about option Greeks honestly I would rather do almost anything than talk about the Greeks so that is all I will say about that LOL.
D) Price action purist should note the tight consolidation and then the Beak out of the tight area to the upside along with the fact that it was early London. This is when I look for price action patterns like this because outside of some news or a random big order coming through there is not often moves in your favor this much and this fast.
My computer was acting up so the video is not in perfect sync but I hope watching some trades like this live and having the base template in front of you will help some people find their way to some good strong trades. The template is called channel surfing and is under Best Mt4 indicators for free on our website.
======== Trade 01 =====
The video above is all about Nadex 2 hour Binary Options. Again I am sharing what I think is the low hanging fruit to trade on the Nadex Exchange. I know that a lot of people like the sexy 5 minute binary options but I think the ITM ( In the money ) trades in the direction of your bias can be a lot easier to execute and trade. This is a trade that I done in a demo account so that I could completely focus on talking out the process and the setup from beginning to end. I was in this trade for about 1 hour and some minutes and that is a good place for me because some of the Theta ( Time ) has ran out of the binary option and but there is enough optionality left for you to get a good price ( $20 - $25 or so ) potential profit if the trade wins. I am covering a lot about how to read the price action on the chart and how to understand what is happening in front of you on a very basic chart. Below are my key take aways.
A: Determine the trend and get your bias and in this example of a 2 hour strategy I am using larger time frame candles ( 1 hour ) on a 15 minute chart to see what is happening and set a bias. 4 out of 5 candles closing down on the hour after the bounce off a very low deviation level the prior day. Then it stopped and bears took back over again. Wait for a day when bears are killing it and then see what the bulls can do and if they fail to move much then that is your bias or vice versa.
B: When your bias is down you want to sell ITM ABOVE some good wicks in the price action. NOT at the wicks but above them because your goal is to setup the most toxic situation that you can for the market maker. Either they will take your money or you will take theirs so do not feel bad about doing this process.
C: I was using my custom indicator the Cross walk and I like to setup mid areas to see when the markets are choppy ( that means to stay out of brackets especially ) or also to find when we are showing some strength what direction are we breaking out of mostly. Crosswalk has weak oscillations with lighter color and grey oscillations to help me spot indecision and choppy areas as well. So I look for strength ( dark colors ) and empty or mostly weak areas on the other side to make price action a bit less subjective for me.
D: I will usually set a working order to take profit early in case at the last minute the trade is tight and against me. You do not have to hold the binary option to the end on Nadex so it is a good idea to take advantage of that when you can and get out for 70 - 80% of the potential value. I show how to do this on a calculator.
E: Also lastly I show a precise way to set your levels so that your level on the MT4 chart will match the level on the Nadex charts and that is very important. You can not pick a strike on your MT4 without knowing where your S/R lines should be exactly.