Can anyone share something that helps them with the 5 min binaries?

#1

Maybe something that helps identify the direction price is moving so you only take trades in that direction… Something that acts as an extra filter to keep you out of losers… time… news, no news… something…

#2

I don’t know about anyone else but for me, it’s all about the rules and letting the market tell you where it’s going instead of you trying to force the market in the direction that you want it to go. The 5 minute binaries are fast but I’ve found that if I stick to the rules, I’m more successful. Aside from that, i stay away from the top of the hour, only get in a trade in the first 2 and a half minutes and most of my trades are ITM with a $12 to $15 profit target. It might not sound like much but it adds up. Hope these tips help.

#3

First…follow the rules. Period. You do not have time to think. My personal choice of contract is also ITM. I prefer 2 to 3 ticks in the money, which leaves me room for $15-$20 to take profit. I monitor my trade and exit if strike is hit to limit my loss. So far, I win more than lose and able to limit losses. Even in a choppy market…I usually end up ahead.

#4

Hi craig, I have had quite a bit of demo experience with TC, and 5 minutes, but am still learning new things along the way. Can you explain what you mean when you say “2-3 ticks ITM”? I have always thought of OTM/ATM/ITM strictly in terms of the price of the binary: OTM is under $50, ATM is around $50-60 and ITM is above $60 (for the buy side). Ive never been able to wrap my head around how the number of ticks correlate with the price. So I guess with a binary being between $0-100, how much is each tick worth that takes it from zero to a hundred?

Also, do you have any pointers for how youre able to able to get out fast enough when your strike is hit wothout using the stop trigger? Because ive tried, and for me its extremely difficult because it seems that in my experience, if a trade is going against you, it may be at your strike for a split second, but if its going against you, it literally just keeps plummeting and I end up “chasing the market” trying to get out, but then its too late. Thanks in advance for the help!

#5

noonie58-First off, the way I trade Binaries is also is part of my style. Quite frankly…I do not care much about what price I receive for my Binary Contracts. What matters to me is the distance the available contract strike is from the current price. I have my own set limits for what I will accept for price of OTM, ATM and ITM.

Using your own numbers for a ATM contract-for a Buy Contract you would enter $60 as your limit (higher end). You will be filled at the best available price of $60 or less. For a Sell Contract you would enter $50 (your number and lower limit) and be filled at $50 or HIGHER. Once again with the best limit price available. Question- If you have gone past your Max Limit Price that you will accept…would you really want the contract anyway???

For entry-use the Bar Range indicator to compute your entry point. For a Buy use the top Bar Range number and add +1. For a Sell use the bottom Bar Range Indicator and -1. This is the number where Trend Catcher tells you to enter and Confirmation. The 2 to 3 ticks I am looking for are based on these numbers. For a Buy–2 or 3 ticks lower is preferred. For a Sell–2 or 3 ticks higher is preferred. Then look for what strike this number is at or VERY near. That is your contract.

I do not use the Stop Loss Trigger.

For Stop Loss I use the same principle for ITM ONLY. For ATM and OTM I do not use a stop Loss. Repeat-NO Stop Loss. On ITM Only-If you Bought at say $70 I exit when my strike is hit. (Sell for about $50 to close trade). Remember that a ATM is worth approximately $50 at the strike?? well if I set my Sell (to close a Buy contract) less than $35 (which is less than $50) I should be able to exit at available best limit. For a Sell contract and Buy to close-set the limit higher than $50, say $70. That is as long as strikes are still available.

Finally, we already know that Nadex prices their 5 minute Binaries 3 ticks(or pips if you prefer) apart. With a little bit of practice and study you should be able to enter and exit at limits you are willing to accept. Don’t chase the binary dollars, instead go after movement via ticks(pips). This method works for entry of OTM, ATM and ITM Binary contracts. You just need to change how many ticks (pips) and which direction. Your choice.

Once again, this is what has been working for me and my style of trading. You may not like having more risk at stake on each contract. ITM contracts win more often but have more risk at stake. OTM win less often and have less risk (and require movement) also. Your choice…you have to decide what works for you. I hope this helps and not completely confuses you.

#6

Craigmac,

Thanks so much for taking the time to answer my questions with such a thorough response! Things sometimes take a little bit of time for me to absorb, but the way you explained it makes perfect sense. Im definitely going to demo demo demo using your ideas with ITM trades. As you mentioned, there is more risk but even so I like the reassurance of the higher probability, and I like that they require little, if any movement. Thanks again for the help!!

#7

Also check the othee tips in system trend catcher 5 min binaries

http://apexinvesting.net/forum/5-minute-binaries-358/#.VTakoiHMNhE

#8

Thanks to Darrell and everyone in these forums (and in the trading rooms)! I’ve been watching videos, taking courses and finally this year was able to get my Nadex account to a level I’m comfortable with and took the plunge to sign up for the trial membership and set up NT, charts, etc. I think these 5 minute binaries are going to be the ticket for me until I can get more experience to try other strategies. Like many others, I have a full time job so I need to work harder at learning everything I can about evening trades. I took a week of vacation to immerse myself this week and by following the rules, I’ve had what I consider some pretty good success so far. What I’ve observed the little I’ve traded so far is that when volume (and movement) are low, get in those ATM or ITM trades and let that time decay work to your advantage to take profit.

#9

I use Bollinger Bands (20), RSI (3), MACD (12, 26, 9) and a 2 minute chart I also go ITM/ATM. If you know how to read those indicators you’ll see the gem in this.

#10

Many, many years ago I used to use BB,RSI, MACD along with Fib Level and a few others when I used to trade options.I would even plot levels for Pivot Points. At that time, that was about all that was available. Today’s marketplace has completely changed and so is the way you trade it.

Binaries are still a favorite of mine. However, I would not be trading the shorter term 5 minutes binaries for Forex Pairs. The odds are against you and the Black out period takes up 30 seconds of the available 5 minutes. Go with the odds.

The very least you should do is increase your expiration amount. and now with Power Plays you can collect you profit even sooner when you have a trade.

As always, always be sure and check the news when trading Forex Pairs.