What is the Nadex Edge?
Nadex has different market makers which make up the bid/ask of certain markets. In my example I focus on the Dow Jones Futures (Wall st 30 on nadex)
I look at the binary option side of the trades. I have traded on Nadex a long time and know what "normal" pricing looks like. If you have traded the End of the Week Dow system with me in the past you have heard me talk about expensive and cheap contracts.
The market makers are setting the prices for these contracts based on the % they think it will finish in the money etc...
Since I know the "normalized" price what I am looking for is when the pricing is out of whack. In my opinion they are showing their hand of the direction that the market is about to go in.
If they for example the Dow is at 34055 and they have contracts to purchase at 34079 and 34031 (Which is 24 points away from 34055) If for example you look at buying the 34079 contract which is 24 points Out of the money, and in doing so it would cost you $47. However if you wanted to sell the 34031 contract which is the same 24 points out of the money but that contract would only cost you $40 you know that there lean is to the upside. They are making you pay $7 more for the same # of points out of the money. But if you want to buy it, it will cost you $7 more. That is the Nadex Edge.
I look at out of the money and In the money contracts on Nadex and see if they are showing us the direction ahead of time.
Here is an example of a trade.
INSERT NADEX EDGE EXAMPLE 2 HERE.
When I see they are "showing their hand" and say things are expensive what I do is I would buy the Dow Jones futures in the futures market. I look for 30-50 point profit targets with a 15-18 point stop. (If my trade goes up 15 points I move my stop to Breakeven)
Not every bias is worth trading you want to find the ones that are really out of whack. Not everyday will offer that. Or at least not everyday will I be fast enough to capture the profits.
I have done the Nadex edge with this Leeloo Account starting on Jan 18th. Here are the results....
These trades are ONLY done between 10am-12 noon. So only during the morning session.
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What I am offering is for you to join me in a webinar to watch for the Nadex edge trades. I will place them in my account and if you want to follow along you can do so.
Is this tradeable on nadex as well? Yes though I don't believe that is the best way to trade it. Remember we are looking for times when Nadex is saying the buy side is expensive. So if you buy it on Nadex when it is expensive you could make money yes. But they are NOT saying it will close the contract above those levels. They may only be pricing that the market get to those levels.
So trading it on nadex the prices are already inflated but the futures haven't caught up yet.
Nadex has different market makers which make up the bid/ask of certain markets. In my example I focus on the Dow Jones Futures (Wall st 30 on nadex)
I look at the binary option side of the trades. I have traded on Nadex a long time and know what "normal" pricing looks like. If you have traded the End of the Week Dow system with me in the past you have heard me talk about expensive and cheap contracts.
The market makers are setting the prices for these contracts based on the % they think it will finish in the money etc...
Since I know the "normalized" price what I am looking for is when the pricing is out of whack. In my opinion they are showing their hand of the direction that the market is about to go in.
If they for example the Dow is at 34055 and they have contracts to purchase at 34079 and 34031 (Which is 24 points away from 34055) If for example you look at buying the 34079 contract which is 24 points Out of the money, and in doing so it would cost you $47. However if you wanted to sell the 34031 contract which is the same 24 points out of the money but that contract would only cost you $40 you know that there lean is to the upside. They are making you pay $7 more for the same # of points out of the money. But if you want to buy it, it will cost you $7 more. That is the Nadex Edge.
I look at out of the money and In the money contracts on Nadex and see if they are showing us the direction ahead of time.
Here is an example of a trade.
INSERT NADEX EDGE EXAMPLE 2 HERE.
When I see they are "showing their hand" and say things are expensive what I do is I would buy the Dow Jones futures in the futures market. I look for 30-50 point profit targets with a 15-18 point stop. (If my trade goes up 15 points I move my stop to Breakeven)
Not every bias is worth trading you want to find the ones that are really out of whack. Not everyday will offer that. Or at least not everyday will I be fast enough to capture the profits.
I have done the Nadex edge with this Leeloo Account starting on Jan 18th. Here are the results....
These trades are ONLY done between 10am-12 noon. So only during the morning session.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
What I am offering is for you to join me in a webinar to watch for the Nadex edge trades. I will place them in my account and if you want to follow along you can do so.
Is this tradeable on nadex as well? Yes though I don't believe that is the best way to trade it. Remember we are looking for times when Nadex is saying the buy side is expensive. So if you buy it on Nadex when it is expensive you could make money yes. But they are NOT saying it will close the contract above those levels. They may only be pricing that the market get to those levels.
So trading it on nadex the prices are already inflated but the futures haven't caught up yet.