I would like to share the touch strangles that i have been testing. From what i have seen futures have hit profit more than forex pairs but require more risk.
The idea is to buy and sell touch brackets waiting for a trend to occur during the week so that one bracket settles at the floor/ceiling and the other cover the loss of the opposing trade with a set profit defined.
- Touch brackets have a weekly expiry. So you have all week for the trade to occur in contrast of spread that are daily.
- Is a set and forget trade. Does not require for you to monitor the trade since the define risk/profit is set already
- You could loose both sides of the trades if the market reverses before your profit is taken. There is a chance you can get in again at the price you got in but will require double the profit.
- Requires more risk than spreads but you have more time for it to go in your favor.
- The bracket will expire automatically at the floor/ceiling unlike spreads.
Here is an example with a $20 profit. I calculate the profit adding the risk of the opposing trade plus fees and the profit that i would like to obtain. That would be my profit price that i would place on nadex for it to close. Let me know what you think.