Gail realizes that you may have questions on trading binary signals using the Nadex forex instruments. Although Gail is always available to answer your questions, here is a list of the most frequently asked questions.
General Guidelines for Trading the Forex Binary Signals:
- Use a $45 limit order for buys and a $55 limit order for sells. (There are slow periods when you can get the binary for between $35 and $42.)
- If price moves in your direction 2 strikes (eight pips on AUDUSD, EURUSD, and USDJPY or ten pips on the USDCHF), then take profits. Exceptions: GBPUSD, GPBJPY and EURJPY — take profits when price moves one strike in your favor (ten pips).
- Also, if price moves one strike in your favor, consider a breakeven mark on the binary ($5 per contract to cover cost of trade).
Frequently Asked Questions about Trading Binary Signals
- What is the win/lose ratio with the binary signals? The Strategy reports show the historical simulated winning percentage of > 50% on each currency (see disclaimer below).
- Which forex pairs are used for the signals? AUDUSD, EURUSD, EURJPY, GBPUSD, GBPJPY, USDJPY, and USDCHF
- What is the average risk on the signals and how many trades are generated per day? That depends on whether you choose to use ITM (highest risk), ATM (about $45 to $55) or OTM (generally risk is less than $35). If the market is moving average to fast, I choose to use the OTM binaries and increase my risk to reward. However, if the markets are moving slow, I choose an ATM that is $45 or less. On average there are about 50-60 trades per month with the exception of the USDCHF (about 20 to 30 a month). The signals run 24 hours a day on the AUDUSD, EURUSD, EURJPY, GBPUSD, and USDJPY, from 8am till Noon on the GBPJPY, and from 8am to 2pm on the USDCHF.
- Do I let the binary expire? I generally never wait until expiration. I set a profit target (usually $85 – $90 on longs and $10 to 15 on shorts) and sometimes when the chart indicate I exit even earlier. A trader’s job is to manage their risk and take profits, ie if price moves in your direction one strike then exit if it looks like it may go against you try to $5 in profit (breakeven trade). The signals are there as a guide but you are the trader and responsible for managing your trade after entry.
- Will the signals work for other binary options providers? I don’t recommend any binary option provider, except Nadex Binary Options.
- Is there a free trial? No, if you want to test the signals, then you sign up for a month to see if they are suited for your style of trading. If you like them you continue, if not you cancel. It is that simple.
- What do you mean by ATM or ITM or OTM? These are different types of binary options. I highly suggest that if you are not familiar with these terms or the way forex moves, you purchase my latest book, Trading Nadex Binary Options Using Currencies.
- Do I need the indicators? No, the strategy now filters using the higher timeframe with the TradersHelpDesk indicators for trading binary signals. However, you do need to manage your trade.
- What if I sign-up and don’t like the signals? Simple, you send me an email to cancel or cancel directly in Paypal.
- Can I use a different trading platform (like MetaTrader 4) to filter the signals with my own indicators? Of course. MetaTrader 4 or 5 is an excellent trading platform for trading binary signals on forex and you can filter the signals using your own technical analysis. What I don’t recommend is taking the signals blindly.
Disclaimer:*Futures, stocks, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures, stocks, and forex markets.Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, stocks or forex. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. Past performance of indicators or methodology are not necessarily indicative of future results.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.