Iron Butterflies on 5 Minute Binaries

#1

So a few traders where asking me last night about how I do iron butterflies on nadex on 5 minute binaries

We know if the bar timer is slow i only do ITM contracts

So that leads to the same conclusion do them on both sides that may be a good time to do an iron butterfly

(this includes a sneak peak at the new scanner)

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#2

Darrell I’ve actually tried to do IBFs on the 5 minutes but haven’t had much luck. When trading at night I typically only see ATM or OTM strikes and if I remember correct trading OTMs thats basically a strangle and not an IBF. And when I’ve traded them during the day I was spending so much on the ITMs that if I lost just one it took numerous trades to make that back up. Any thoughts? I will admit that with the 5 minutes, since theres only 5 strikes to choose from, I was do the deepest ITM… Thoughts? Btw, when will the new scanner be available?

#3

The stop trigger would help, i think.

What are the statistics on this Darrell? How often when the stop trigger is hit does it expire outside the strike and the chances of it coming all the way across the entire range and hitting your other strike (may have gotten out when the other side was hit) have to be incredibly low? I’m talking in general, not for the 5 minute.

#4

I dont use the stop trigger on 5 minutes. This is a 5 min thread so that would not apply.

Also i make sure they are 6 wide not 3 wide on butterfly with 2.5 to 3.5 on both sides

i often leg in

To say you only see OTM or ATM strikes is a bit odd… As every strike is either ITM AND OTM depending on direction

Often there will not be a good one. ie 2.5 to 3 ticks away. Not on both sides etc…

If not just dont take it. Top problem i see often is traders forcing trades.

Also watch all 4 markets at once not just 1.

ITM look for SLOOOOOOOW bar timer :slight_smile:

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New scanner is getting close. Tightening up a few things. Like adding proximity to the trade tracker. It has a lot of cool bells and whistles that will be free with Essentials and Elite memberships like you can tear off the markets - show quad view - multiple markets - tear off the charts and much much more.

#5

Adding the proximity is cool. Things are so fast with 5 minute binaries having the proximity right there for us would help.

Can you PM me the statistics to my question above?

#6

Regardng stats…

There the 5 minutes are open 23 hours a day with 11 expirations an hour on 4 instruments dont have the stats on this.Thats just the 5 min… plus you got 20’s, intradays, dailys weekly’s sort of an impossible question to answer generally. Man’s gotta sleep sometime. It really comes down to which system your doing how close your strike is time of day premium and more…can go on and on and on. But as you know the longer you trade binaries its not a simple answer to say how often does it touch the strike after entered very relative questions with a lot of moving parts.

#7

Tried these last night, 4-0. I noticed that if you are patient and don’t just jump into the trade at the beginning of the expiry you can usually get pretty good strikes. I try to wait until price is centered between two strikes. I also make sure there is no volume (most of the time) and no news. Also, try to get my legs as far apart as I can but this isn’t always possible. Also noticed that price levels that haven’t been tested for awhile seem to hold up pretty well and getting strikes around deviation levels really work.