What is the best way to structure a trade using Nadex products when anticipate a breakout from a trading range when it is unclear what direction may occur from the breakout? For example, if price has been trading in a narrow range of two lines of clear support and resistance, and I expect an move outside of that range but I do not know if it will emerge bullish or bearish, how would I best structure the trade using Nadex products? Would my design be different if I anticipate the breakout occurring in 1/2 hour? 1 hour? 2 hours?
Dual Direction Breakout Strategy
darrell
#2
You would use a straddle strategy. Use a longer term spread expiration the longer you think it will take to breakout. Less time means lower cost and more profit but also means less time for it to move. Also have take profit orders set as soon as you get in.