Straddle 5 Minute Binaries

5minutebinaries
straddle

#1

Hello:

I’ve been wondering if there’s a method to successfully use the straddle strategy on 5 minute Binaries. I’ve played around with the demo account and found some results, but not consistent.

I did learn that it’s best at times of the day where there’s a lot of movements expected. Any suggestions?


#2

Joel, I think you may mean “strangle” We use binaries for strangles and use spreads for straddles. You are correct, you have to get the right pricing on 5 min binaries to successfully do a strangle and it is about the pricing of the binaries at the time which si effected by implied volatility in the market and how the markets are moving. So just like the market does not consistenly always move the same way each day or at times of each day, your implied volatility will not always be consistent each day or even throughout the days. At Apex we talk alot about having multiple plays in your playbook to adjust to the different markets conditions and about being able to read the markets to know and see what the current conditions are and know which strategy to choose at that point in time. So it is the same with Strangles, when there is the proper pricing and strikes and avail and there is volatility in the markets those can be good times for strangles. When the market is range bound, not a lot of volatility, and low volume, then those are times for Butterflies with binaries etc. So it will not always be " consistent" as you asked, it will change as to which strategy you should use and when .


#3

Thank you so much for that information Skeltonmark! That really cleared things up for me!