Stop Loss rules

#1

I am mainly trading Nadex and had a question regarding rules for stop losses…

For example, on Apex Elite entries the stop loss is 5 ticks beyond the P bar or with Profit Poppers even being 1 tick beyond the P bar…

With stop losses like that on Binaries waiting for that big of a move for a stop loss you could lose $30-$50 dollars before you get out on 1 contract…

So am I wrong in thinking that with Nadex, your stop losses are actually going to be a dollar figure rather than ticks?

If so, if that is the case, I mean even 1 or 2 ticks moves, you are beyond $20 losses. Does that really make it harder to profit since you are probably getting out a lot sooner than if you were trading futures?

Again if that is the case, does trading futures make it easier to profit on these trades?

#2

Your inaccurate in your assumptions you shouls use price not dollars to determine your stops. The market determines the stop not the p/l of a contract. The p/l of a contract has nothing to do with the market.

The issue is the contract you are choosing. We don’t use binaries on Apex Elite entries really ever…so not sure why you are? we use spreads on them but not binaries. That would be sooo slow and take forever there are much more productive trades than binaries on apex elite entries.

However, we do use binaries on Apex Profit Poppers and have very specific selection criteria for strikes and the strike itself is the stop if ITM and there is not one of OTM.

#3

Hi Darrell,

In a previous post you had told me either Binaries or Spreads for Elite Entries…but if you are saying Spreads are the instrument of choice, that’s fine, I will go with that.

But in regards to my assumptions, I was referring to the stop loss rules where it was stated to make a stop above/below the P. My point was if so, for Nadex Binaries, if it is a 14 tick bar, by the time it hit that stop loss, you could be $20-$30+ down before it hits that…that is why I said should I use the profit loss…I understand my p/l doesn’t determine the stop, the market does but if done according to the rules using a binary, it would be a big loss before I got stopped out…that is why I asked if using futures to trade Apex would be better since ticks have a set value rather than Nadex binaries where ticks values varies.

That being said, I will definitely look to use Spreads for Apex entries.

#4

Ernesto, yes Binaries can have a different loss factor based on time decay to expiration and not just on ticks etc. So on Apex Elite MVP we do have some traders that trade binaries on them but very few, it is not recommended. We do recommend futures or spreads more on Elite MVP. Take a look at this video here in the Forum regarding trading spreads with Elite http://apexinvesting.net/forum/spreads-elite-260/#.U_vOSPm-3ZQ

That is on the Elite MVP Entries, Add On’s, BMX Reversals, and MVP Reversals - futures/spreads/forex/stocks/cfds/forwards

Apex Profit Poppers - Binaries and - futures/spreads/forex/stocks/cfds/forwards

Momentum Scalps Binaries and - futures/forex/stocks/cfds/forwards (note only on spreads if bid/offer is narrow enough - ie 2 ticks or less)

Spike Striker - Binaries

10 MIN MVP Binaries, Potentially: futures/spreads/forex/stocks/cfds/forwards

EPC/ETC - Binaries

#5

Ok thanks.