Category Archives: NADEX

Investoo Signals

Investoo Signals Good For NADEX Traders

Investoo.com is a website with a vast library of educational trading videos, indicators and signal systems good for a variety of trading styles. The service is based in England and registered with the FCS, number 82888880. A simple registration will get you access to the introductory level training videos while a one time uprage of $100 will get you the full package. Included are over 300 hours of videos, organized into several courses targeting forex, binary options and CFD’s as well as technical aspects such as candle sticks and strategy. Also included are 3 indicators for MT4 based on PSAR, MACD and Stochastic and all capable of generating signal alerts.

NADEX Binary Options Signals

The goal of the website is to teach beginners how to trade, but they go far beyond that. Traders of any level can learn something from the videos and the indicator signals are a valuable trading tool. They produce easy to follow entry and exit signals that go hand in hand with the video lessons.

The Investoo.com indicators are suitable for trading NADEX binary options. They are MT4 indicator plug-ins based on three standard indicators; Parabolic Stop and Reverse, MACD and what they call the binary options indicator but is really stochastic. The indicators track prices and generate signals as they meet preset criteria, when used along with strategy and confirming/coincident indicators they perform pretty well. The caveat, and the website does not sugar coat it, is that false signals do occur, they offer no guarantees of wild success.
Investoo Video Courses
This is where the videos come in handy, they teach different methods of picking the good signals and weeding out false signals to help ensure win rates better than break even. At least a basic understanding of trend along with the use of support and resistance levels is what I suggest.

In order to use them with NADEX you will have to also need to use MT4, if you don’t have it it is an easy download as well. Once you download the indicators adjust to the time frame you like, the indicator will appear at the bottom and signals will generate in real time. In order to use them to their fullest potential strategy is a must, simply following them blindly will not produce good results. Expiry should be chosen based on the time frame of chart you are using. I suggest at minimum 30 minute candle sticks, I prefer one hour and one day for my trading.


Vist Investo.Com Now For Binary Options Signals

NADEX Binary Options Strategies

Why NADEX Is Best For US Traders

This binary options strategy works

Okane’s 15-30 Minute Strategy

A Binary Options Strategy That Works

“With no knowledge of trading I spent months studying, I read everything that I could find and tested various indicators and strategies. Finally I’ve put together everything that I’ve learned into a strategy that if followed correctly should keep you profitable. It’s important to see the whole picture and remind
yourself of what you are trying to achieve with the strategy you are currently using.

As a newbie this is difficult, suddenly you no longer know what you are looking for and you are simply lost! That’s when you start losing. So keep in mind what you are looking for when you are analyzing your charts. Hopefully with my strategy getting confirmations and spotting a possible trade is simplified. And that is the whole point!”

≈ Okane ≈

Mr. Okane is one my fellow traders over at Communitraders. He first described this strategy for trading 15-30 minute binary options in a forum post that has become on of my favorite on the site. The strategy is based on the RSI indicator, uses two time frames and is trend following.  Originally intended for taking signals on charts of 5 minute candle sticks I think it can also be used with success in longer time frames as well. Okane is trading CySEC style digital options but this strategy will also work well with Nadex and 0-100 options. This is how it works.

The Trading Tools

  • Chart Time Frames – This strategy uses two different chart time frames; 15 minute and 5 minute. The longer term is for determining trends and setting trade direction, the shorter term is for pin pointing entry.
  • Moving averages – This strategy uses three moving averages to help determine the trend. The moving averages are used on the longer term 15 minute chart and are the 50 bar, 21 bar and 5 bar Exponential Moving Averages. 
  • Support and Resistance – This strategy uses support and resistance lines. Lines should be drawn any where and in any time frame that they appear to be important. This tool is not restricted to the 15 and 5 minute charts. Okane uses a support and resistance tool that automatically seeks out potential areas. You could also use Fibonacci Retracements.
  • RSI(4) – This strategy uses RSI (Relative Strenght Index) to pin point entry. It is a fast RSI, set to 4 bars, and is only used to produce signals that follow the underlying trend as set on the 15 minute chart. Signals are only taken on the 5 minute charts.
  • Candlesticks – This strategy uses candle stick charts in both time frame. The candlesticks are used to help identify trends and entry points.
  • Stochastic – This strategy uses stochastic as a coincident indicator. Okane uses it to help determine underlying trend and to confirm his entries and exits.

The Strategy

For this strategy you will start with charts of 15 minute candlesticks. Of course, I recommend using a chart of daily or at least hourly candlesticks first to draw some support and resistance lines first. Once that is done begin with the 15 minute charts, if the current price is near one of the support/resistance lines it could be a negating factor for any signals you get in that direction. Use the moving averages to determine the trend in this time frame. If the shorter term averages are above the longer term 50 bar moving average then the trend is up, if they are below it then the trend is down. Also look for higher highs/higher lows in the case of an up trend and lower highs/lower lows in the case of a down trend.  It is best if both conditions are met as Okane does not recommend using this strategy in a sideways trending market.

Chart of 15 minute candlesticks

Chart of 15 minute candlesticks

Once you have identified a clear trend it is time to wait for the signal set up. The set up begins when the RSI reaches over bought or over sold levels. In the original posting a bearish example is given but this strategy works equally well in both directions. So, assuming a down trend, wait for the RSI to reach over bought. This will happen when the asset price bounces higher before resuming the current trend. Once RSI reaches over bought levels it is time to move down to the 5 minute charts to pin point an entry.

On the 5 minute chart you will need to wait for a confirming signal. This can be a variety of things but will be a signal continuing the underlying trend on the longer term 15 minute chart. Let’s look at the buy signal in the example below. Just prior to the signal the chart is bullish but prices are extended, waiting for a pull back is recommended. Once prices pull back to the moving averages a series of candlesticks confirms support and signals an entry. Once an entry is confirmed binary options with 15 to 30 minutes of expiry are used.

Chart of 5 minute candlesticks

Chart of 5 minute candlesticks

Before entering a trade you need to take support/resistance into consideration. If the asset’s price is close to S/R and your signal is in the same direction you may need to await a break through before opening a position. If the asset prices have already broken through S/R or are in between two S/R levels then trend following signals have a high rate of success. Stochastic is also used at this point. A trade may be indicated by RSI

Some Words Of Caution

This strategy is based on very short term charts. Even though currency pairs are very active in these time frames it is still harder to predict than longer time frames like hourly or daily movements.  You have to be really quick to catch some of the trades. News events can also have a big impact on this strategy and should be avoided until you get a handle on using it. In addition, Bogdan (one of the other Pros at BOTS.com) advises using a longer RSI than the (4) suggested in order to smooth out the line and help reduce false signals. Okane himself will caution you to use stochastic as a coincident indicator when timing entries. RSI may be signalling you to open a position but if stochastic says the move is already played out then you should stay away. An example would be is RSI indicated buying a call position but stochastic was already overbought.

Bonuses To Using Okane’s Strategy

  • Currency pairs with like denominations can also produce similar trades. For example, if a trade on the USD/JPY is working then a trade on the EUR/JPY may work as well. Likewise, if a trade on the USD/JPY is working then the opposite trade may also work on the EUR/USD. In order to take advantage of this you will need to be extra quick.
  • This strategy relies on two time frames to confirm signal. This helps to weed out false signals and even more importantly, pin point the right entry. It really sucks to take a good signal only to get in at the wrong time and have a potentially great trade lose.
  • This strategy has the approval and support of the trading community at BOTS.com and Communitraders.com.

Click here for the full story at CommuniTraders!

Binary Option Updates!

I apologize for the delay in adding this to the page. Okane has been updating his progress and trading account regularly on Communitraders forums but also has been keeping an update on his Google+ page. To check in for the latest results click here. 

Nadex is CFTC regulated

How Is NADEX Different From Other Binary Options

The North American Derivatives Exchange

nadex logoNADEX is the North American Derivatives Exchange. It is an offshoot of IG Markets, an international provider of CFD and other derivative instruments. Currently IG Markets operates in England, Europe and Australia providing traders a platform for trading. NADEX is the North American branch of this network and currently the only CFTC, SEC and OCC registered, licensed and regulated broker or exchange operating in the U.S. and North America. Regulation is important for binary options because it provides a base from which the industry can grow while building trust among traders and service providers. CFTC and SEC regulation is not the only kind of binary option regulation, just the only kind recognized acceptable in the U.S. at this time.

Binary Options Regulation

Several different countries regulate binary options

Several different countries regulate binary options

Other forms of binary options regulation include  CySEC, FSA, FSC, BaFIN and Isle of Man GSC among other local jurisdictions. CySEC has been leading the way in this regard. It is the Cyprus Securities and Exchange Commission and was the first to categorize binary options as a financial instrument. Because of CySEC’s work and member status in the EU CySEC regulated binary options brokers and service providers are able to reach traders throughout the EU and friendly nations through the Economic Passport.

Banc De Binary is one of the leading binary options brokers in this area although they still suck as a broker. BDB was the first to get CySEC regulation and subsequently FSA and BaFIN regulation. The FSA is the Financial Services Authority of England, BaFIN is the financial regulatory body of Germany. Other countries are also getting into the fray of binary options regulation. The FSC of the British Virgin Islands is one. This small island nation is one of the worlds banking/tax havens and a hot spot of the binary options industry. At this time there is no binary options broker, exchange or service legally operating in the U.S. besides NADEX and the limited binary offerings of the CBOE and AMEX.

  • Binary Options Regulation – Futures, options and derivatives trading is governed in the U.S. by the CFTC and the Commodity Exchange Act. Through its mandate to protect U.S. citizens from fraud and unscrupulous trading practices the CFTC has said that no unregulated options or other financial derivatives may be marketed or sold to U.S. citizens. This is why BDB and others have been shutting their doors to the U.S. The SEC’s stance is a little less clear and seems to provide a loophole a few brokers have seized upon.   These loopholes have lead some brokers to offer options on some assets but not on others, usually commodities.

    It seems clear to me that as regulation progresses in other parts of the world it will systematically shut down access to U.S. traders.  Regulation could change at any time and those loopholes could close at any time. CySEC’s recognition of binaries as financial instruments is great for the European and international markets but will eventually keep them out of the U.S. market. There are other sources of “off shore” binary options regulation such as ASIC, FSA and Isle Of Man GSC.

What Can You Trade At NADEX

There are some differences between NADEX and European style options that lie mostly in the types of options traded. With CySEC/European style binary options you can trade high/low, over/under, one touch, 60 second, range and 0-100 style binary options on all the major world indexes, currency pairs and commodities. At NADEX you can still trade all the same underlying assets but they are less types of options to choose from. There are only two kinds of options at NADEX, binary options and bull spreads.

Binary options are a fixed return, all or nothing trading vehicle with only two outcomes. If you win the option is worth $100, if you lose it is worth nothing. The price you pay for each contract will be somewhere between $0 and $100 depending on market conditions. If you pay $45 for an option and it profits you receive $100 for a net gain of $55-fees. Bull spreads trade like a covered call or options spread. They are binary outside the range but pay spot price within the range.

Nadex assets are easy to use and follow

Nadex assets are easy to use and follow

  • NADEX has binary options and bull spreads on all the major stock indexes, 8 major currency pairs, commodities and even some economic events. Each underlying asset is traded through a derivative binary options with an identical value. Some, but not all, have a different name. The S&P 500 is called the U.S. 500 and the EUR/JPY is stilled called the EUR/JPY.
  • Binary Options- NADEX binary options are all or nothing trading vehicles with expirations ranging from this morning to this afternoon, the close of todays session or the close of this weeks session. They are worth $0 or $100 at expiration. You choose from a list of possible strikes and expirations, pay market price and profit the difference. Market price will range between $0 and $100, comes with a bid/ask spread and fluctuates with the movement of the underlying asset.
  • Bull spreads- Bull spreads are similar to binary options but have some distinct differences. In essence bull spreads trade like a future mixed with an option spread. Outside the range of the spread the bull spread is binary, just like an options spread. If it closes higher than the range you get the maximum return, if it closes lower than the range you get the maximum loss. Within the range the bull spread trades like a future and is worth $1 per point. If the bull spread closes within the range but higher than your buy-in point you will receive the difference between your paying price and the spot price at expiration.

Trader Resources At NADEX

nadex webinars mayThere is a complete set of trader tools at NADEX. The set includes the basic information on trading binary options and bull spreads and other more advanced tools. The ongoing education series consists of daily webinars on subjects ranging from strategy to charting and psychology. The platform is easy to use but takes a little getting used to. Once you have taken the tour and gotten familiar with it you will have no problem. There are charts available but I still prefer to use my charts through OptionsXpress.

What Are The Differences Between NADEX and CySEC Binary Options

nadex order ticketLet’s compare NADEX and the general off-shore/European Style/CySEC binary options industry. European style CySEC regulated binary options brokers are not the same as NADEX for a variety of reasons. First, CySEC regulated binary options brokers are more like banks offering high yield investments. NADEX is more like the NYSE or the AMEX. The high yield investments, binary options, are sold directly from the bank(binary options broker) to the client (you). The binary broker makes money by keeping 70-100% of losing trades and a smaller percent of winning trades. Brokers try to keep their books even by matching buyers of puts and calls. When this is not possible they have even resorted to manipulating closing prices in order to keep themselves in the green. These aspects of the binary options industry is one of the reasons it has received so much criticism over the past few years and why there is so much risk of fraud and shady dealings from offshore brokers. This is also why CySEC came into play, to prevent fraud and provide a framework for fair dealing.

Second, NADEX is an options exchange. This means it is a market place, much like your local farmers market.A binary options market place is where binary options traders can come together to buy and sell options. The exchange charges a fee per trade in order to make its money and not a percentage.  The fees are inconsequential when compared to trading CySEC style binary options. NADEX charges $0.90 per contract with a maximum fee of $9 per trade. $100 at NADEX could buy you two contracts with a cost of $1.80. With CySEC if you trade $100 the broker may get $70-$100 of that money if you lose, depending on rebate structure. They may get as much as $20-$30 from the opposite side of the trade if you win.

This difference is one reason why CySEC style binary options are not allowed in the U.S. I know you are thinking to yourself right now if that is the case why are so many brokers still operating with U.S. clients. The answer to this is they are doing so at the risk of themselves and their clients. The CFTC has already shut down several brokers. The leading CySEC style binary options brokers are now shutting their doors to U.S. traders one-by-one as they receive regulation to protect themselves so be careful if you (American Trader) choose to use one.

nadex sell ticketThe third major difference between NADEX and CySEC/European binary options is tradability. CySEC binary options can not be sold (usually) before expiration and are only worth $0 or your predetermined return. NADEX binary options are highly tradable and can be bought and sold at any time prior to expiration. Since the price of NADEX options changes over time your profit or loss will be determined by the difference in opening price and closing price. Another great thing about NADEX binary options is that they can be sold short. That’s right, sold short. Unlike CySEC options which are only debit positions (buy a call if bullish, buy a put if bearish) NADEX options are either debit or credit. You buy the position if you think the market is moving up and will close above, you sell the position if you think the market is not moving up and will not close above. This reason alone makes NADEX more attractive to me simply because it opens up so many different types of strategies that can not be used with CySEC options.

  • The Greeks And Binary Options- The options Greeks Delta, Theta, Vega and Gamma have no bearing on binary options. They do play an underlying role on market value but are not present during trading. You do not have to worry about how far, how fast an asset moves while keeping one eye on volatility and another on interest rates. Binary options close in the money if they are above the strike price and out of the money if they are below it. They only have two values and you receive all or nothing at expiration.

Click Here For More Information On NADEX Binary Options Strategies

Are CySEC Binary Options Brokers Safe

CySEC style binary options and brokers are safe. Trading binary options is a viable method of speculating world markets and it can be done profitably. However, like all financial vehicles, especially highly speculative ones like binary options, they come with risk and should be approached with caution. Be sure to check into any broker before depositing money and make double sure of their withdrawal methods and requirements. I have three CySEC/European style binary options brokers on my short list of approved brokers. These are:

Binary Options Are Risky 

Trading of any kind is risky. I highly recommend that you spend as much time as possible learning about the financial markets, fundamental and technical analysis before you begin any trading. You should also consult a professional and make sure you have the resources to risk money on trading binary options. Binary options are not a get rich quick scheme, it is possible to lose your entire investment or account in one trade.