What is this? Straddle, Strangle, Butterfly... My brain is scrambled

#1

Hi, In the forums someone posted an image to help explain ITM & OTM positions above and below the indicative. So I followed it… What is this? Here is a screen shot:

Also, I give… I cry UNCLE! I am going to have to buy an inexpensive PC to use the scanners. I will upgrade as I make profit. My brain is scrambled trying to do all the research and tech indicators by hand. I did come up with a few things and now that I know about getting in and out of trades using market orders I am able to execute, and have made some profits… and lost about the same. If this is going to work… I need consistent profits and it looks like I will have to use the great scanner tools available, although I must admit all the charts posted look pretty complicated. Any tips on a 500-700$ PC that will do the trick?? Please and Thanks you. :slight_smile:

#2

This is someone doing a strangle and a butterfly at the same time. Not really sure why they would have done this, would need more info on the post and reasons why. Possibly they were thinking they were trying a hedge of some sort, but need some more explanation here. Couple of pointers here:

  1. Unless you are following a leader in the room and understand the system they are using, I would not blindy take trades just because others are taking them. Follow, but know what you are trading and why.
  2. Can you give me some info on what system you are trading with binaries. You mentioned being up and down in your account etc. What system are you trading? How many hours a day are you trading? What markets are you trading?
  3. What type of computer are you using now and how many different monitors do you have? Just a little more info here and we can help give you some better insight and direction :slight_smile:
#3

Hi skeltonmark, Thanks for replying. Apologies ahead if this is tooooo looong. Here is the image I copied from the forum.

I was looking up advice on time decay. I don’t remember who posted it. Your pointers are well taken. I am not following anyone. Would love to have a mentor that said do this, and then this… spelled out.
As far as what I am doing, I have no system. Watching webinars and reading voraciously. I have to wait to get a PC because we are buying property and all cash flow is going there for the next couple of months. When I do get a new PC I will go for the free scanners, etc.

For now I have a TDAmeritrade account (small) and Think or Swim for charts which came with my account. I have been trying to figure out what indicators to put on my charts and so far they don’t make much sense, as I really don’t know what parameters to set up for short term. So I try this one and that one… Candlesticks seem to work so far the best, but I am also trying to figure out some others. I know some indicators are better than others in short term intraday trading.

I came up with a method which seemed to sort of work and it was nice to make 5-15$ profits for 6 trades in a row, and then… I pick the wrong direction and lose 25-30$ a couples of time and wipe out the last hours trading.

My own “invented” method was to place a trade in what I felt the market direction was heading, close to the money or at the money as a market order. Then I immediately open the reverse ticket as a market order (to be instantly filled when I hit the “place order” button. I then watch the chart on a 1 minute time frame and as soon as I see over 5-10$ profit, depending if it’s going my way or stalling I hit place order and grab profit. It almost always goes into profit even if I am wrong about the direction, unless I am really wrong. Hence the 80% profit (small bites) and the 20% loss (big bites). 5 minute binaries mostly.

I am pretty good at “following a recipe” so to speak and would love some simple instructions… do ABC and you can reap the profit. It is honestly confusing. There has to be a way to trade without scanners, but maybe not. I dedicate 3-5 hours a day. I like 5 minute binaries and trades from 20 minutes to an hour. The longer weekly trades get kind of slow for my personality. I used to be a rock climber. :wink:

I keep mixing up my straddles with strangles and butterflies and condors!! I would really like to have a couple of strategies to be consistent with and to practice while I am waiting to get techy with a new PC.

Once I am actually making profit regularly and not just hit or miss, I will gladly join the elite room. In appreciation!!

#4

If you are trading Nadex and aren’t taking advantage of the scanners, you really are making things harder on yourself.

#5

I get it matrixbinary373, and if you read my post you will see I want the scanners, AND they do not work on my computer and buying a new computer is not an option for the next couple of months. So, I am looking for guidance for the way things are now. Like… how, in the olden days, cashiers used to know how to make change when a purchase was made in their head. Now if a transaction is made and the cash register doesn’t tell the cashier how much change to give me, they are lost. For NOW I need to learn how to do this without the tech. It is just the way it is, and it is possible, I do believe. Then, when I get the scanners I will also have a firm foundation and a good understanding.

#6

I understand that and while yes its very important to have a basic understanding of how to get in/out of a trade using the Nadex platform. The scanner allows you to do so much more.

Instead of trying to do everything now… come back when you have a new computer and take advantage of everything.

Instead of trying to come up with your own system, find one of Apex’s that have been tested for thousands of hours and by thousands of users. This way if you have a question about a trade, it will be much easier for someone to help you.

Also was going to suggest that you check out trading Spreads as well. But saw you already have. Smart move!! Binaries have their time and purpose for being used, but can be very unforgiving. Meanwhile, with Spreads, you wont lose $15+ if a trade goes against you a couple of ticks.

Here is a link to the Minimum and Recommend Specs for using NinjaTrader (Apex’s charting software)

https://ninjatrader.com/support/helpGuides/nt8/en-us/?minimum_system_requirements.htm

(Note: Apex currently uses Version 7, but will eventually move over to Version 8. If the computer can run Version 8, then 7 wont be an issue)

#7

Thanks Matrixbinary373, I appreciate your reply and I understand. Sometimes I feel hobbled or blind when I am trading. Today I have I am going up to Best Buy and charging a PC for trading. Thanks for the specs link. I hope it goes well and I am able to learn quickly how to set the scanners up and IZSS for spreads. I used to have pc’s but it’s been years. Moved to mac’s a while ago. I am going to do this because I love and truly desire to trade for a living. I am retired and have several hours and then some to dedicate to it. And my pension is beyond meager. If you don’t mind me asking, what is your success rate and how long have you been trading? Have a great day!

#8

Being able to have a stop loss/ trailing stop makes things much less nerve racking :-).

Success rate is easily 80% +. Sometimes I would get greedy and try and “force” a trade, which almost never worked. But following the rules, have turned out to be quite profitable. Have been able to to turn this into a nice little part time job. Used profits and got myself a new computer last year. As well as was able to pay my car off 2 years early.

I usually will only do 1 or 2 trades a day though.

Have been trading with Apex for about 2 years.

Best of luck :slight_smile:

#9

Thank you Matrix, Your help is great. I bought my new computer and the scanners work really well. The webinars are great and really helpful. I have entered a spread, with a stop trigger. Is this correctly set up to be 15 pips against me to be triggered. I believe so. Take care and happy trails!

#10

Wonderful to hear!

Were you looking to do a 15 pip hard stop loss or a 15 pip trailing stop??

If it was the hard stop, then you should have been good to go.

The scanners really do make trading Nadex so much easier.

Keep up the good work!!

#11

Good Morning, A 15 pip hard stop. Later it moved up and I was around 40.00 profit. At which point it fell and stopped me out! Well, At least I know that works. :slight_smile: I still ended up with a 33.00 profit. But it was an all day trade. I should have let it run however, because after the dip it expired way up. I will study about trailing stops, haven’t got to that part yet. Also wondering what a “price offset” is in the stop trigger box. I am excited, I am learning and I do believe it will come together. Another day… finding my trade.