Hi Apex traders,
I am a new trader that’s trying out different strategies on the 5 minute binaries. One strategy I am currently trying out is buying deep in the money options for $20-$25 and $75-$80, and then getting out once the market gets to about $5 and $95. Since I am doing this type of strategy, I do not trade on the London session, I prefer the Asian session later on in the day, where there’s less spikes and violatility.
However, sometimes even the Asian session goes into extreme overbrought and oversold conditions, causing those deep in the money options to expire deep out of the money really fast. I’ve even seen them majorly switch directions in the last couple seconds.
My question is, what can I do to limit this? What type of news should I look for to avoid these spikes? Also, how long should I wait until I go back into the markets? Are these spikes even due to news? I always get out of the trades once they hit about $50, but since you cannot input a “stop loss” order on Nadex, sometimes the markets moves too fast, that I’m not able get out at $50 and end up losing way more money.
)