New to Nadex and have been trading full time with Nadex for 5-6 months. I primarily trade SPY E-mini (US500) 20-min. contracts. To be successful at trading binaries, what is the minimum price/premium I should shoot for when purchasing a 20-min. binary?
Oscar, a lot of it depends on exaclty what strategy or system you are using and making sure you are using a good risk reward ratio compared to probability. What system are you using? Are you doing OTM-ATM- or ITm binaries?
Skeletonmark,
I am using simple moving averages with bollinger bands (1-min. chart). I mostly trend trade incorporating multiple time frames and normally try to buy on momentum breakouts/breakdowns. Ninety-nine percent of the time I pretty much buy deep ITM binaries and try to shoot for at least $7.00 premium on a trade, but I may purchase as low as $3.25 or as high as $15 if I think the probabilities are good enough. But my losses can be typically between $20 to $40 on any one trade, which can typically wipe out an entire days worth of trading. What do you think of this strategy and what do you advise on becoming profitable? Should my average premiums be higher?
