I’ve been using the Power Plays in the Nadex Demo with surprising success. There is something that I’ve been doing with the Power Plays recently, and I want to confirm whether or not it is acceptable:
When there are periods of limited activity, long chop, long bar timers, or just basic ranging, i’ve been applying Iron Butterflies and Iron Condors alongside the Power Plays. I’ve been very successful with this. Only a few times I lost when the market finally broke out in a direction (usually when I wasn’t paying attention or walked away from the screen). Are these acceptable with the Power Plays, or am I adding on something extra that’s not part of the Power Plays, or have I just been lucky so far?
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The add ons are not part of the Power Play system itself, but does not mean may not be something that is profitable for you. I think it is great that you are thinking outside of the box and testing these additions. You may be on to something here. keep us up to date on your testing and let us know your long term results over a few weeks of testing.
Just keep in mind , like you said, that once you see chop, we do expect at some point soon for the market to break out, which would cause losses on a butterfly or condor trade. So to be effective you would need to use the shortest time frame possible on these trades with a very close expiration time.
You may find them most effective on potential #4 set ups than anything else. But please keep us up to date on your findings! Great job
Thank you for your compliment. I was afraid I was breaking the 20 Day Power Play Only Rule, but maybe this is a good addition to it.
When looking at chop and particularly the long bar timers, the IB and IC additions were just glaring. Power Play 4 seems to be the most effective, but the breakout factor is the primary problem. So, yes, shortest time frames with close expirations seem to be the best way to handle the breakouts. Of course, one needs to spend more upfront money to do these IB’s/IC’s with the Power Plays, so one with a small account won’t be able to take advantage of this method.
I looked at the additions of Straddles/Strangles, but I didn’t find connections with any Power Plays (maybe someone else can make the connections). I also looked at the connection between Power Plays and major News Events, but the events seem to take priority.
Thanks again for your response. I’ve learned so much from Apex.
Anthony
