I’ve been enjoying reading about everyone’s strategies and experiences trading spreads on Nadex and thought I would ask what your favorite type of IC overnight spread is. Do you prefer Forex, Commodity or Indices IC’s? Why?
I’ll start: So far I like Forex IC’s over indices because there’s less jumping around in the middle of the night and they’re great for premium collection (as long as stops are tight). Yeah, they generally have less IV and less premium at entry than indices but you can still make a good profit IF you trade multiple contracts per side. Agree or disagree? What’s your favorite? @skeltonmark@renzo1@MATRIXBINARY373
Honestly, Im surprised I am even trading more than one contract on anything (Account size isnt the problem with the numb er of contracts I use)
While the rewards are nice… Im more concerned with the losses.
Ive never done an overnight FX IC… So I have zero experience. Even though the indices, (NQ in particular) tend to be more volatile. I just feel more comfortable having that extra premium to play around with. And as we have seen, Ive been able to come away with some nice profits (in my opinion) even before the Europe markets open at 3am.
Are you taking the 6pm-3pm dailies? or the 11pm - 7am intradays??
I was to slow last night trying to get into an NQ IC.
It was one of those nights where the premium starts out good but 30 seconds later. $20 disappears
I don’t rlly trade FX much. I make way more money doing IC with the indices bcus as @MATRIXBINARY373 said you have waaay more premium to play with. The one down fall about doing ICs on indices is that they cost more to put on.
If ur doin say 3contracts on FX, the max u’ll make is abt $90-105 and that is if you hold it to expiration and it closes exactly at the floor and ceiling which rarely happens. Your very lucky if that happens :).
Now on the Indices i can do the same 3 contracts and make $60-200 depending on the IV at the time and you can make that b4 the market even opens. I love the fact that i can make tht much and not have to hold it all day. You could make way more if you hold it all day and it expires in ur zone but i just rather not take the risk of losing all the gains i made pre market. So that why i just take the money b4 open if i have it, if not i take a small loss.
Now isn’t a very good time to do these tho bcus of the low IV but when IV increases you can demo trade them. I recommend trading them when you can get $100 worth of premium on both side with 1contract. From my experience that’s the best time.
(Account size isnt the problem with the numb er of contracts I use)
