Don’t know if this would be a help to anyone but this is what I have kind of been playing around with and want to know if anyone else has and if so, maybe find some tweeks in the strategy.
Example: AUD/USD indicative is at .74614
Sell strike is .7462 and it is selling for $25 Buy strike is .7457 and it can be bought at $76.25
Potential Profit is $48.75 if expires in-between. But what happens if it goes against you. Say the indicative falls below .7457 and you are now out $76.25 if it expires? You can either sell the Buy position and buyback the Sell position for hopefully a loss no more that $30 or so. But I have been experimenting with a strategy that will allow you to hold until expiration and still only have around a $30 loss but potential to make ~$70.
So this would be the set up. Sell the .7462 strike for $25 Buy the .7457 strike for $76.25 Watch and hope it expires in middle, but say it moves below .7457! Look at next strike below (probably around .7440 or so) and see if you can buy it for around $$75-$85. This way, if it rebounds back in your original butterfly, then you can profit anywhere from an extra $15-25 or if it loses the original butterfly but stays above the hedge, then you only lose $25-$40?
This has worked for be before in demo and the butterfly (original) has demo’d excellent. Thinking about adding this Hedge to the original but didn’t know if someone else has already experimented with this already? I am sorry about the possible semantic confusion, I am self taught on Nadex so I may be saying things or explaining things wrong