Finspreads Binaries
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stevespray
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Winning Formula.....
Having played the binaries a bit myself I would suggest that the best way to play is to run winners wherever possible. Two reasons for this. One - You effectively cut the spreads in half and instead of the company making 3% - 4% as you trade in and out they can only make around 2% purely on your entry. Two - When you run a winner you will maximise the potential return from a correct call as a posed to cutting it short.
In my opinion the key with playing the intra day (hourly) binaries is to establish the intra day trend. Never (NEVER!) play against the prevailing trend - its a mugs game. What I like to do is to open the trade right at the start of the hour when the price is still 48/52. If the trend is up then buy the 52, if the trend is down then sell the 48. Keep an eye on the trade but dont over manage it. The idea with a successful trade is to simply let it expire and therefore claim the maximum possible without the company helping themselves to a further spread. In many cases when you trade with the trend this is what happened s - the position simply slowly increases value across the hour that it is open. In the case of a losing trade we want to try and limit our losses before the whole stake is eroded. This again requires a certain amount of skill. I try to avoid trading when the markets are too volatile - volatility seems to introduce an element of randomness which is much harder to manage in terms of the positions. If you want randomness then use a casino as the odds are much tighter. The skill in limiting losses is to recognise when the market is not acting as you were expecting. In such a situation duck out, take your loss and wait for things to return to how you like them. When I looked back at my biggest losing trades I found that they were all trades which kind of gave clues that things weren't happening as planned. There is a saying; "A penny saved is a penny earned" - this is very true with this type of trading. If you buy an up bet at 50 and close it at 30 then you lose 20.... but you also save youself 30 if it goes on to expire at 0.
Most important of all is to remember that losing trades are as important as winning ones and both will occur. If someone says they have a full proof system then they are telling porky pies. There are no easy systems or methods. The best that you can do is to apply tried and tested rules - running winners and cutting losses will always help you.
Steve.
Having played the binaries a bit myself I would suggest that the best way to play is to run winners wherever possible. Two reasons for this. One - You effectively cut the spreads in half and instead of the company making 3% - 4% as you trade in and out they can only make around 2% purely on your entry. Two - When you run a winner you will maximise the potential return from a correct call as a posed to cutting it short.
In my opinion the key with playing the intra day (hourly) binaries is to establish the intra day trend. Never (NEVER!) play against the prevailing trend - its a mugs game. What I like to do is to open the trade right at the start of the hour when the price is still 48/52. If the trend is up then buy the 52, if the trend is down then sell the 48. Keep an eye on the trade but dont over manage it. The idea with a successful trade is to simply let it expire and therefore claim the maximum possible without the company helping themselves to a further spread. In many cases when you trade with the trend this is what happened s - the position simply slowly increases value across the hour that it is open. In the case of a losing trade we want to try and limit our losses before the whole stake is eroded. This again requires a certain amount of skill. I try to avoid trading when the markets are too volatile - volatility seems to introduce an element of randomness which is much harder to manage in terms of the positions. If you want randomness then use a casino as the odds are much tighter. The skill in limiting losses is to recognise when the market is not acting as you were expecting. In such a situation duck out, take your loss and wait for things to return to how you like them. When I looked back at my biggest losing trades I found that they were all trades which kind of gave clues that things weren't happening as planned. There is a saying; "A penny saved is a penny earned" - this is very true with this type of trading. If you buy an up bet at 50 and close it at 30 then you lose 20.... but you also save youself 30 if it goes on to expire at 0.
Most important of all is to remember that losing trades are as important as winning ones and both will occur. If someone says they have a full proof system then they are telling porky pies. There are no easy systems or methods. The best that you can do is to apply tried and tested rules - running winners and cutting losses will always help you.
Steve.
stevespray
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LOL ..... Looks like they've widened the spreads yet again! The quote at the strike was 45 / 55 just now. Keep up the good work boys.
Steve.
PS Why not just make the spread 10/90 and cut out all the messing about???
Steve.
PS Why not just make the spread 10/90 and cut out all the messing about???
stevespray
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More fun and games from Finspreads on this last hourly Dow. They closed their market much earlier than advertised to trap people and stop them from closing a clearly risky bet. To my mind that is outright cheating. Nice work boys.
Steve.
Steve.
Hi Steve,stevespray said:
Interesting read. I trade hourlies too but here's my observations:
1. I always exit the trade before the last expiration minute. I've had my fingers burnt big time by letting the trade expire. once i remember explicitly I was short from 15, couldve come out at 5, didnt hoping for an expiry at 0, but in the final minute market shoots up and I get filled at 100. Also ftse is strnge as the cash doesnt always correlate with the futures so while daily ftse is rising (or falling), the settlement level on the hour is not the IG or finspread quote. eg. if at 10:59:50 daily ftse is 6204-6206, you suddenly see the settlement at 11 am is 6205.9!.
2. Also if you are long for eg and the market is gone your way and with 20 mins to go you can come out at 96, I would. It means you dont have to look at the screen for 20 mins and incase if there is a reversal, one really kicks themselves.
3. I agree with cuting losses short but its so tricky as for eg if you get out at 30 (22 pont loss it can sometimes shoots up and leaves me gutted.