Good Afternoon, I need some help, in finding a way to quickly determine and know what the Equivalent Tick/Point value translates to the Nadex spreads … compared to that Markets Underlying Market.
QUESTION 1 : For Example… Let’s say I am looking at my chart, and I get an Entry to go Long on GC ( Gold ) , and Gold is trading at 1095.00 on the Underlying So I look over at the " Buy " spreads via my Apex Spread Scanner , and look to buy an ATM spread ( to get as little of a Proximity as needed )
Also, I use an ADR ( Average Daily Range ) indicator to give me a projected and " Likely " move that I can expect any market that I am trading to move, during any given day of trading . So if the ADR for GC is showing $20 on my chart , and GC has already moved up $10 at the time I am looking to go Long… I in theory, can " Only " expect GC to move up $10 in price ( or $1,000 if were trading GC on the outright Future’s contract )
OK … so we now know that we have a projected MAX move of $10 in GC So knowing this … How can I know…
- What Proximity on the Spreads translates into ONLY needing GC to move $1 ( in the Actual Future ) ? Would this be a Proximity of 10 ?
I just want to make sure, that when I get an Entry on my charts and then go to look for an ATM spread … If my ADR tells me that I have a realistic move left in the underlying of $10 ( for GC in this example ) , that the spread itself doesn’t have to move say … $9 , before I start to make a $1 for $1 move via the Indicative/Underlying. If the Spread has to move $9 before I even start to make $1 , and the ADR is showing that a $10 move higher is at the Max of GC’s ADR … then this is a spread I would PASS on.
So Would a Proximity of 1 on a spread on GC , mean that GC only has to move $1 on the Underlying , and thus leaving me with a potential to make $9 on the trade ? 
QUESTION 2: Is there a way to " Swing Trade " using the Spreads ?
Say you entered Long on CL at the price of $48 and by the time CL closes on Nadex ( 1:30 p.m. cst. ) and you still want to stay Long the trade … Is there a way in which you could " Stay Long " a spread on CL ? Or would you have to close out of your spread at 1:30 and then wait until 5:00 p.m. cst. to re-enter into an all new Long spread ?
I hope that my questions make sense,
and appreciate any feedback and help in helping me understand , how to quickly find what spread to trade ( and the spread that replicates ) how I would trade the outright Future contract … but trading it using the Spreads instead
Thanks again - Michael