Trading TC using Nadex Spreads, some clarification please

#1

Hello all,

I would like to get some clarification on TP and stop losses when using TC target/trend system. In most videos that discuss trading with TC, it is suggested that for a Target trade your take profit should be bar size minus 2 ticks and Stop loss of bar size plus 2 ticks. So, if you are trading NQ on a 12 tick chart your TP for a target scalp would be 10 ticks = $25 at .25 per chart tick and your stop loss would be 14 ticks = $35. If you are trading CL or GC spreads using a 12 tick chart your TP would be 10 ticks = $10 at .10 per chart tick and your stop loss would be 14 ticks = $14. Is that correct? Thank you in advance for your answers.

John

#2

Hi John - your math is correct for converting from the futures contract point price to the Nadex price for the stop losses & take profits.

NQ 14 tick stoploss = 3.5 NQ points or 35 Nadex ticks = $35

NQ 10 tick take profit = 2.5 NQ ponts or 25 Nadex ticks = $25

Similar math for CL & GC when converting from the future pricing to Nadex pricing.

  • Bob
#3

NQ on NADEX now ticks in .1 for $1 per tick. so a 12 tick bar would equal a 10 tick scalp profit target for $10 and a 14 tick stop loss for $14 stop loss per contract. :smile:

#4

So, your TP and SL are 10 & 14 nadex ticks, not underlying ticks for NQ?

#5

All trades on tc on spreads entry and exit are based on the underlying market size ticks.

NQ ES ZC AND ZS Nadex spreads are higher leveraged spreads they tick faster than the underlying. So 14 underlying ticks 3.5 points would be $35 as the underlying market ticks in .25 and their spreads tick in .1

Fdax and ftse are lower leveraged they tick slower than the underlying. At 1 vs .5 so 14 ticks on the underlyinh would be 7 nadex ticks or $7

Others tick the same as the underlying like gc tf ym eu gu eu etc… so 14 ticks is $14

#6

Thank you for clearing that up Darrell.

John

#7

Thanks to every one.

#8

Sorry for the confusion! I was wrong. Thanks Darrell for the clarification! :slight_smile: