Nadex ITM strategies - Preventing loss question

#1

Hi guys,

Sorry if this question has been asked but I couldn’t find an answer in the videos or on the posts. I will try to be as clear as possible since I am new to trading Nadex and Binaries.

I have opened up a demo account and would like to use ITM binaries for some premium collections since I still work full time. I understand that ITM collections give you better chances at winning, but you pay a premium for the binary being ITM. I am trying to setup my trade to prevent a loss if the trade goes in the wrong direction and don’t understand how to do so.

For example, let’s say I wanted to trade EUR/USD and the strike I found was EUR/USD > 1700 by 3pm and the current market is at 1710.0. The trade is ITM and assuming I have 30 minutes left until the contract expires. So I BUY the contract for $70 to make $30 upon closing.

To prevent losing the whole $100, I would like to setup a SELL contract if the market moves the other way? I saw in your videos to setup a 1:1 ratio so if the market moves against you, you would place a SELL contract if the market reached 1700 again.

Is there a way to set this up in advance? in case you are not watching the market? This way I would be setting and forgetting about it while I am at work? Or would you recommend a better strategy?

Sorry for the long post but I wanted to make sure I explained myself as best as I could.

Thank you,

#2

Here is an older video but it will basically give you an overview what you need to know.

http://apexinvesting.net/the-nadex-stop-plug-in-training-course/

Using the EUR/USD 1.1780 3pm Sell Strike as an example

Once you are in the trade… click the Stop Watch that is next to the Lighting Bolt (Instant Submit)

That will bring up the Stop Trigger with most of the information auto-filled out

Since the Strike Price is 1.1780 that is what is filled in. Double check to make sure everything is how you want it and then click on the Activate Stop Trigger button at the bottom of the ticket.

Then you should get something like this.

The indicative will be actively monitored and if it reaches the Strike Price (1.1780) an order will be submitted to close the trade. With it being worth around $50

Couple things to keep in mind… Both Nadex and the Stop Trigger HAVE to STAY ACTIVE. If your internet goes out or computer goes to sleep or even if the Nadex platform craps out… the trigger wont fire off.

If you could keep somewhat of an eye on it, that could be a little more reassuring.

Be careful holding a binary until expiration… while the extra $5-6 can be nice… One move while the trade is nearing expiration could wipe out all your profits