I was thinking about trading news on nadex binaries. My strategy would wait for the info or data to come out and then immediately placing a binary trade in the direction the market would go depending on the how the data relates to what was forecasted. Im thinking if you act within a few seconds of the news coming out you could get in on a trade before the new news info becomes priced into the binary and thus you could get a great deal and overtime you would make money on each contract.
thoughts?
edit: was thinking about sniping news events on spot forex but the brokers always freeze or the spreads get ridiculous making effective news sniping hard
Being fairly new to this industry, I’ve previously asked a similar question, along with the use of Straddles/Strangles. Here was the response:
My observations:
I’ve tried what you mentioned, and it does work…somewhat.
If you move fast enough, it’s possible to profit.
There are two issues:
First, I find that the market has already started moving at the very second (or seconds before) the news is announced. If you don’t mind losing a little part of potential profit, then proceed.
Second (and this is important), depending on the market you choose, the direction can change in the opposite way, and you lose. You can try to select an opposite contract, but that leads you right back to the first issue I’ve mentioned. In addition, this seems less likely to work, because you’re now “chasing the rabbit” at this point.
As a whole, if you’re really fast, go for it. Just use the Demo first to see if you can profit this way.
Otherwise, Straddles/Strangles are the best way to go. Even though there is the possibility that the current indicative won’t move enough to both earn a profit and cover a loss, for the most part, they work. Just try to make sure that the contracts you pick are as close as possible to the current indicative to minimize risk, and set take profit orders that are more likely to succeed ($15-$20 seems easier than $150-$200).
Finally, using Apex Systems (like IZSS) was also an answer given to me, concerning Directional Trading. I haven’t made the jump to Elite Membership, but everyone who is an Elite Member loves the systems.
Reason im not doing straddles/strangles is profits are low and over time im thinking i would lose or break even due to fees, im thinking about buying a premium service that gives economic numbers and data almost immediately after they come out and while waiting i would have a ticket open at a ATM or nearly ATM price and insta click sell or buy to snipe the market before the new data is “priced into” the binary contract
edit: key is you probably need to enter the trade around a second after the news result comes out
Believe me, I understand risk of low profits or losing money on the Straddles/Strangles. This is especially the case when you want to maximize profits with limited funds. Concerning fees, I always include them in all of my calculations. I’ve traded in the direction of the news within seconds of the announcement, and it does work. Like I’ve previously stated, there are issues to address, but it can be done.
Are you trying to make larger profits with Straddles/Strangles? I previously suggested that you keep your take profit orders at a reasonable level (if you are even using take profit orders). Keeping it at a basic level has, for the most part, worked for me. If you’ve tried this, has it worked for you?
Considering the purchase of a premium service that gives immediate economic numbers, does this even exist? Will it be more costly than being an Apex Elite Member?
You can get economic numbers at the Apex back office. Just go to “Access Free Tools”, “News”, “Economic Calendar (Forecasts/Actuals)”. You’ll have to refresh the page to get the results. You can also use ForexPros.com and ForexFactory.com (where a refresh button appears within moments right next to the news event).
(I am curious how the more experienced people will respond to this subject matter.)
I found an online service thats 10 usd a month that publishes results in like 10 ms, extremely quick
I find the idea of straddles/strangles ridiculous and unless you are a pro at it you will break even or lose in the long run
im not risking 1k to make 20 bucks (exaggeration) the MM spreads will kill your profits
10 ms? Wow. The only thing is can you make the trade in 10 ms? At that point, you would need some sort of automated program or service to instantly make the trade for you.
Believe me, I understand your view. I do well on Strangles but not very well on Straddles. The training here suggests focusing on Spreads, but I do better with Binaries. (Well, that’s just me.) However, the training on Straddles/Strangles exist to make one a pro. Usually, losses occur because inexperienced traders use them for EVERY trade. There are rules to follow in doing them.
When you mentioned not risking 1k to make 20 bucks, that sounds more like an Iron Condor/Butterfly. Is the IC/IB the actual issue you’re having and not the Straddle/Strangle? If yes, I TOTALLY agree with you. You need to have more money to do the IC/IB. However, if you do have more money, they actually work out better in the long run. Again, it’s all about the training.
spreads are just dumb in my option, its just like trading the underlying with capped risk (and reward)
all the straddles/strangles/ic/ib crap is just stupid to me, i am only interested in one trade directional strategies
oh and once the data comes out I can just press sell or buy on the ticket and insta enter the trade in 2 seconds, i doubt the MMs update the pricing that fast (but i dont know, havent tried it yet lol)
