Spread Entry

#1

Darrell - is it possible to use the same procedure for setting our stop losses on spreads (in reverse) for entry into a spread?

If we wait for the E bar to complete, we know what the 3 tick entry would be. Could we not set up our tear off ticket the same as we do for stop losses?

So, if we are long and the E bar high is 15200, the entry would be 15203. Could we not add 15 ticks to that (15218) on the tear off ticket to make it a market order. Then, hit submit when the underlying hits our entry price of 15203?

Today I missed a trade as I had to keep updating the price on the tear off ticket and the market was oscillating, then flew off. I didn’t want to chase the trade and thought this would have gotten me in at the right price. Of course this was the only time this has happened and isn’t a big deal, was just wondering…

Thanks, Brad

#2

Brad,

DM is the authority on this, but I think I can answer based on his teaching. He has TONS of videos available for free where he teaches newbies like me. On spread long entries, off an APEX P, after the E bar, if the next one or two bars is 3 ticks above the E that is exactly how I enter. I always enter a nadex “buy” spread 15 ticks higher (E high plus 3 + 15) so I get filled on a market order, ensuring I see a market maker with a book out there at the moment I click buy ( the only exception being trading crude, which is E high + 4 + 15, only if e high is broken by 4 ticks in one or two bars. I never click click click to enter a potential trend following trade 3 ticks above the E, I’m ready to enter. I am pretty sure I learned this from this video:

http://apexinvesting.net/forum/apex-elite-trading-system-nadex-spreads-binaries-99/how-do-you-apply-elite-system-nadex-spreads-[video]-390.html

Once again, I’m a newbie, but wanted to share.

I do NOT use this method on a news straddle spread. Prior to entry I calculate PT (profit target) , check deviation levels to ensure the PT is viable based on deviation levels that may become support/resistance, ensure spread straddle I may be buying and selling is withing my PT, and if it meets the criteria then enter by updating the tickets like you described ( open, update tickets), I enter both sides.

#3

TP- thanks for the response. I have watched all the videos and this is something that only happened once, so it isn’t a big deal.

I have the trade room and scanners on the same computer, and I have NT on another. SO, what happened was the price was changing and then the chat window would pop up as someone in the trade room said something. So, then I would have to pull the window to the side, and then go back to my order ticket, by that time the price had changed.

It was just something that I was wondering about afterwards, if we could do the same as stop losses as entries, that is all. I would expect that in a less volatile market you wouldn’t have to worry about a bad fill, but in something like oil I would imagine that you could face getting filled at a much different price than you wanted.

Brad