Gail realizes that you may have questions on trading the 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.
Frequently Asked Questions about Trading the Binary Signals
- What is the win/lose ratio with the binary signals? The binary signals should be considered a tool for trading. As a trader, it is up to you to decide whether to enter a trade using either an In-the-Money (ITM), an At-the-Money (ATM) or an Out-of-the-Money (OTM) binary depending on your risk level. There are no specific rules because the markets move differently everyday. Sometimes using an ATM (based on where price is currently trading) makes more sense then using an OTM (one strike away from where price is currently trading). Additionally, since traders have the option to trade either ITM, ATM, or OTM (I personally would never do the ITM as it has the most risk), there is no accurate way to track the win/loss ratio. While I could simply use the close of the expiration bar to determine the win/loss ratio, I don’t think it is realistic for most traders because traders have different risk parameters and some will use ITM, others ATM and yet others will utilize the OTM. However, during 2016 – 2017, I did track over 600 signals and the average winning percentage for ATM trades was between 50-60%. These results are hypothetical (please read the disclaimer regarding hypothetical results below).
- How many signals are given in a day? Depends on the market and how fast it is moving for that given day. On average there are 15 to 20 signals per 23 hour period.
- Which forex pairs are used for the signals? AUDUSD, EURGBP, EURUSD, EURJPY, USDJPY, USDCAD, USDCHF, GBPJPY, and GBPUSD.
- What is the average risk on the signals? That depends on whether you choose to use ITM (highest risk), ATM (about $50 to $55) or OTM (generally risk is less than $30).
- Do I let the binary expire? I generally never wait until expiration. I set a profit target (usually $85 on longs and $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. 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? The indicators help you filter the signals. While it would be great if trading was as simple as receiving signals on twitter and you make money on every trade, it is unrealistic. Trading will have highs and lows — go back and review the results that I tracked. Although the signals typically ended in the green, there were always a losing week in between. Having losing trades is part of trading. Being able to manage your risk and take profits when warranted makes a huge difference and typically those issues are resolved with having the indicators and reading the charts.
- 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 forex and you can filter the signals using your own technical analysis. What I don’t recommend is taking the signals blindly.
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.