Using risk to reward when trading Nadex Touch Brackets and binaries is important because the higher the reward the more likely you will be positive for the day. In this example, Gail shows the seven trades that were entered on November 21, 2019. Out of the seven trades, two lost money and five were profitable. The overall winning percentage was 70%.

The trades were on the GBPUSD and EURUSD. Notice that on the EURUSD, there was a short touch bracket and a long binary option. The GBPUSD combined multiple touch brackets and binaries (all to the short side). Both losing trades were on the GBPUSD (one a binary option and one a touch bracket). Two of the GBPUSD binaries made money and the second GBPUSD touch bracket made money.

The long binary option on the EURUSD achieved the profit target. The short EURUSD touch bracket was exited with a profit.

On entry, all trades had an anticipated risk to reward of at least $1 to $1.5. The gross profit for the day was $301 and the net profit (after fees) was $279.