If im looking to trade a nadex asset(such as a 2hour eur/usd binary) directionally?.I would use a ATM option?and then determine whether I want to put or call?correct??.and also?is this your preferred method
I tried this method. It is not a good method for trend trading. It does not increase my probability of success.
Technically they are not calls or puts (though incorrectly labeled by bucketshops) as nothing can be called away or put to anyone. They are simply buy or sell go long or short etc…
I do not use ATM Binaries for trading unless I am using high statistic probability trades based on historic seasonality and current algo technical patterns combined. This is due to the fact that you are risking $50 to make $50. Which sounds great except for it must stay close higher/lower etc… at expiration and there is little to no room for stop loss or take profits. When trend trading it can go in your direction and turn around easily and close lower.
I personally if trading directional using binaries I either use ITM binaries (ie buy at 75 - let time work in my favor - and have a stop loss if it hits the strike of $50 so i am risking 25 to make 25 etc…) or combine an ITM and an OTM binary using the double binary strategy. I have a few other methods I use as well. I am doing a webinar on these this month on Tuesday nights. I just posted last nights under Double Binary - in the forum - or check bonus webinars series 2 - under education. See multiple webinars and system under education - nadex - bonus webinar - under the forum - systems - i list multiple nadex strategies as well with video trainings on them.
