Futures Problem vs. Underlying

#1

Hi Everybody, I had some family business I had to take care of over the past few months, and now have the time I used to have to dedicate to this, so I was hoping to pick up right where I started.

I’ve now switched to demo-only mode until I’m consistently profitable with binaries, but I had a few questions, if you guys would be okay with helping me out some.

I’ve got the FXCM and AMP feeds setup in Ninja Trader, and I’m definitely connecting them in the appropriate order, as taught in the tutorial.

Last night, I was monitoring the AUS/USD binary, and the future chart for the Aussie dollar was significantly lower than the actual underlying AUS/USD value. Charts were set at 5 minute intervals.

These numbers are arbitrary, but let’s say the indicative AUS/USD was .8998, while the value on the futures chart was .8134. The underlying value never came anywhere near the futures value, although it was trending lower, mainly by a thousandth or two up and down over the course of half an hour.

I was wondering….

  1. Why was the futures value off by so much?

  2. At what point is the futures data feed showing that the underlying will eventually reach that point? In several hours? I’m just not sure how I can reliably use this futures data if it’s off by so much, and the underlying is still increasing/decreasing minute to minute. I can’t discern an entry point that I’d be comfortable with.

  3. How does VOL help me? I understand what it’s showing me; trading volume essentially; I can view that there was a spike in trades a few minutes ago, but how does that help me with regards to entry and exit points right now?

Seeing that the underlying AUS/USD was still moving so slowly, I employed an Iron Butterfly, (the market at the time only gave me like 2-3 strikes apart.) I went to sleep, woke up this morning and both trades had settled with their payouts/profit. I have a feeling I was just lucky.

I guess, does anyone see anything else that I’m missing or maybe where I may be incorrectly using futures?

I would greatly appreciate if anyone could shed some light on these few questions.

Thanks guys! I think I’m getting there!

Jacob

#2

The future has rolled over to December 6A 12-14. It has the cost of carry/interest built into it for the next 3 months this is why the price is different. This is just one of many reasons why you need to use the spike striker indicator to have it analyze all the volume correctly for you.

There is a lot more to spike striker than what we go over. That would take days to go over all the algos in it to do everything it does. We explain the basics of how it works so you can do the trade using the toolkit. But its not enough to do the trade without it. The whole point of the toolkit is to make it easy.

Remember you don’t need to know how a transmission and alternator works to drive a car. Just how to turn it on, use the pedals, shift, and stear etc…

We don’t use the VOL indicator. We use the Expected Volume Indicator in the Apex Toolkit. However it sounds like your talking about spike striker. Which has a whole different variable in it. It knows what math to do and where and lines it all up for you. Do not try to do this on separate charts it wont be near as helpful for you. Also you have to monitor 3 futures charts.

Probably most important And you still need the algo for spike striker monitoring order flow that gives direction. So in short use the spike striker to monitor all 3 time frames volume on the futures while loading your spot forex chart so it can do all three and analyze order flow for you. Without this you will make mistakes that cost a lot more than a subscription and even demoing you will be doing it wrong.