Market Overview

How to Trade Binaries With Only 15 Minutes A Day (Series 4 of 4)

In part one of our "How to Trade Binaries With Only 15 Minutes A Day" series, you learned how to use diagnostic bars, with expected volume, and expected range channels to trade with only 15 minutes a day.

In part two, you learned how to apply this system to make money on binaries using this system, by making money on time with premium collection trades. In part three, you learned how to apply this system to make money on binaries with trend collection for lower risk and higher payout trades. And now, in part four, you will learn how to combine the premium collection and the trend collection trades together to maximize probabilities and profits. 

Related: What Is A Nadex Binary Option?

How To Make Money On Time With Binary Options, By Combining Both Premium Collection And Trend Collection

As discussed in parts one and two, making money on a required directional move in the market is known as trend collection, and making money on time passing is premium collection.

A binary option has a value of $0 to $100. Nadex binary options have strike prices.  If you buy a binary, the price you buy at is the risk, and $100 minus that price is the maximum profit potential. If you sell a binary option, the price you sell at is the profit potential, and that price subtracted from $100 is the risk. You can do one or hundreds of contracts at a time depending on your account size and risk management method.

If you buy a binary option that has a strike price under the underlying market's price, then if the market stays flat, moves up or moves down but still expires above the strike price as of expiration, you will be profitable on the trade. (This is known as an In The Money (ITM) buy binary and is used for premium collection.)

OR

If you buy a binary option that has a strike price above the underlying market's price then if the market moves up and expires above the strike price as of expiration, you will be profitable on the trade.  (This is known as an Out of The Money (OTM) buy binary and is used for trend collection.)

You can also do the inverse

If you sell a binary option that has a strike price above the underlying market's price, then if the market stays flat, moves down, or moves up but does not stay above your binary strike price as of expiration, you will be profitable on the trade. (This is known as an In The Money (ITM) sell binary and is used for premium collection.)

OR

If you sell a binary option that has a strike price below the underlying market's price, then if the market moves down below your strike, you will be profitable on the trade with a higher payout on the trade. (This is known as an Out of The Money (OTM) sell binary and is used for trend collection.)

If you combine a bought ITM binary with a bought OTM binary that is known as a long double binary strategy.

If you combine a sold ITM binary with a sold OTM binary, that is known as a short double binary strategy.

If Doing A Long Double Binary Nadex Binary Option Trade, Follow These Steps

Here's an example:

1) The market (i.e. ES S&P 500 Emini Futures) is at 1834 at 9:45 a.m. and the system gives you a buy signal. ((A) Actual Volume exceeds expected volume in the last 15 minutes, (B) with an up close bar, (C) and the subsequent bar breaks that bars high).

2) At 9:45 a.m. you buy a Nadex binary US 500 > 1836 @ 10:00 a.m. -- meaning you are stating that the S&P 500 will be above 1836 as of expiration 15 minutes later.  You buy the binary for a cost of $30.00.  Therefore, the risk is $30 and the profit potential is $70.

In addition, you buy a Nadex binary US 500 > 1833 @ 10:00 a.m. (meaning you are stating that the S&P 500 will be above 1832 as of expiration 15 minutes later.  You buy the binary for a cost of $70.00 therefore the risk is $70 and the profit potential is $30.

If the market expires above 1833 but below 1836, you will make $30 on your 1833 bought binary strike and lose $30 on your 1836 bought binary strike, putting you at breakeven.

If the market expires above both 1833 and 1836, you will make $30 on your 1833 bought binary strike and you will make $70 on your 1836 bought binary strike for a total profit of $100.

If 1833 and below both expires market span then you will lose $70 on your 1833 bought binary strike and you will lose $30 on your 1836 bought binary strike for a total loss of $100.

Now remember, as discussed in parts two and three, you do not have to hold the binary until expiration. You can exit the 1833 binary strike if the market comes down to 1833, exiting at $50, thus limiting your losses. There is no need to exit the 1836 strike on an adverse move against you, as it is an OTM low risk binary with a higher payout. In addition, you can take profits on the strikes, should the market move in your favor, to lock in your profits versus letting the market potentially pull back and go against you before expiration. So you could set a take profit of $95 on the ITM bought 1833 binary with an exit for $50 at 1833 and you could set a take profit on the 1836 binary at $95.

Doing this would allow the scenario to play out the following way:

If the market does not hit take profit or stop loss before expiration, and the market expires above 1833 but below 1836, you will make $30 on your 1833 bought binary strike and lose $30 on your 1836 bought binary strike making you breakeven.

If the market moves down to 1833 and you exit at $50, then the market continues to move down, you will lose $20 on your 1833 bought binary strike and will lose $30 on your 1836 bought binary strike, for a total loss of $50.

If the market moves down to 1833 and you exit at $50, and the market then moves back up and expires above 1836, you will lose $20 on your 1833 bought binary strike but you will make $70 on your bought 1836 strike for a total profit of $50.

If the market moves up enough for you to take profit on your bought 1833 binary strike at $95, you will make  $25 on your 1833 bought binary strike, and then it drops back down and expires below 1836, you will lose $30 on your 1836 bought binary strike for a total loss of just $5.

If the market moves up enough for you to take profit on your bought 1833 binary strike at $95, you will make  $25 on your 1833 bought binary strike and then moves up enough for you to exit your bought 1836 binary strike at $90, you will make $60 on it for a total profit of $85.

Using the exit before expiration method allows you to greatly reduce risk to a $50 loss versus $100, or to a $5 loss, or a breakeven and still have a profit of $85.  This allows you a much better risk-to-reward ratio.

In this case it expired at 1836.75 above your 1836 strike. Therefore, you are profitable on the trade at either $100, or $85 if you took profit before expiration which is always a wise plan.

You can see an example of this chart by clicking HERE.

You will notice the three steps on the 10:00 a.m. expiration less than 15 minutes before expiration: the entry, the strikes, and the expiration price. 

binary_options_nadex_apex_investing_es_s_and_p_500_es_example_buy_nadex_binary_option_buy_signat_double.png

Used with permission from Apex Investing Institute LLC ApexInvesting.com

You now know three different strategies to apply on this one simple system. This allows you to trade for just 15 minutes a day, or just 15 minutes at a time during a busy day.

Remember you can do this strategy at night, during the early morning hours, at the market open, the afternoon or the later afternoon on forex. You can also do this late at night on the Nikkei 225. Plus you can do it during market hours from 3:00 a.m. to as late as 4:15 p.m. on indices and commodities; depending on the instrument you are trading. 

 

 
To learn more about how to trade binary options in-depth and for binary options signals, trading strategies, tools and trade rooms see ApexInvesting.com

Posted-In: apexinvesting binary option signal binary option trading systemBinary Options Education Markets Reviews General

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