Which Nadex market is the best to use a straddle strategy on?
The straddle strategy can be used on any market as long as there is expected movement. That is why it is used on news trades. If the market is flat you will generally win a little on one side of the trade, and lose all on the other side.
If you look at the bottom of the news trade calendar “http://apexinvesting.net/news-trading/” , it will tell you when to use each strategy.
You can also watch the straddle videos in the forum…
Happy trading!!! Brad
There is no best market all the time answer for any strategy.
Strategy - - Straddle - means expectation of a large enough move to cover the total risk and return a profit of ideally 1 to 1 or greater
For this to happen a larger than expected move has to occur
When does this happen - when news reports come in and are different than expectations -
So straddles really are a news based strategy as it is assuming more volatility than what is priced into the risk of the straddle already
ie if there is a 20 tick premium on up side and 20 tick premium on down side 40 ticks of time value (breakeven distance) - then the expected move is 40 ticks - which would land you basically at best at breakeven make 20 on one side lose 20 on the other - so you really need a time when the market will move more than expected - govt news is the best thing to do this on
