Has anybody had success trading the news with Nadex? Even with news autoclick software my orders are tossed into the working order bin. Nadex takes soooooo loooooong to open a trade.
Anybody had better luck than I?
Cheers
Nadex and the News
darrell
#2
Depends on how your trading it. We have the news trading plan under news. If your trying to go directional right after the news its going to move fast and you will need an offset (ie higher price on a buy lower price on a sell) or your limit won’t be filled and will end up in working like on any limit order anywhere
Hey Darrell,
Thanks for the reply.
Was afraid you’d say that. I’m not a fan of pre-trading the news. The spreads are always widened in anticipation, but the you never know when the news will be big enough to really move price, let alone be big enough to compensate for the widened spreads of both trades (assuming a straddle or what not).
For the same reason, offsetting price enough to successfully open a trade immediately after the release kind of kills any chance for profit, since generally speaking, one would have to offset the entire spike that one is trying to catch in the first place, and then overcome the spread on top of that.
I’m sensing futility…
darrell
#4
You may want to read the news plan again. As we covee what news normally has a large impact vs small. We review the last 12 months and are usually spot on.
If your waiting till after your to late.
We dont do a lot of straddles
This is only done in large moving news.
Strangles (binaries) on news are limited to usually the ecb press conference after ecb interest rates, on nq before google earnings sometimes as early as 1 pm, oil inventory (often great) and natural gas Inventory, and corn. We get in before it NOT after it.
There are only a handful of news straddles on nadex spreads.
Most are iron condors on news (trainings on news plan page) as most news does not move much.
Trading directionally immediately after a release is hard to do on any instrument simply do to speed of movememt. I even tried servers on the cme floor colocated. Stick to before the news.
The one exception is on higher impact meaning big move events i wil trade 5 min binaries using trend catcher but its very fast trading.
ronin50
#5
I have to concur with what Darrell is saying. Trading into the news is the way to go especially with Iron Condors. In fact just yesterday I used the News trading plan to make some coin into the FOMC on the GBP/USD and the EUR/USD. Both were profitable for a net of $115.40
Here are some breakdowns on the trades (these are Think or swim charts, don’t have an FX feed for Ninja at the moment)
GBP/USD:
EUR/USD:
Capture of my Nadex open positions before expiry:
Transaction history breakdown after settlement:
I also threw one on last night on the USDJPY for the housing starts news, woke $33 richer:
So yes, you can make money trading the news if you follow the plan. The stats on these are thoroughly back tested and profitable over time.
Happy Trading! 