Using the Nadex Touch Brackets and binary options allow traders to maximize their potential profits by combining different expirations. This morning was a great example of the GBPUSD.
The trade setup was to the short side (even though the GBPUSD has been moving up all morning). The higher timeframes indicated a retracement was likely and the lower timeframes confirmed the move down.
Although there was only one trade setup to the short side, here is how I built my trades using Nadex touch brackets and binary options:
- Short at 4:21 am for a 5 am expiration – 1.3136 strike for $$30.50 in risk (two-hour binary) and set a target at $20, resulting in a profit of $49.50.
- Short at 4:22 am for a 6 am expiration – 1.3128 strike for $18.75 in risk (two-hour binary) and set a target at $20. However, as it went under the strike, it hesitated and was forming a potential double bottom with the Stochastics overextended so I exited at $40 resulting in a profit of $41.25.
- Short at 4:23 am using the Nadex touch bracket (1.2913 – 1.3163) for $24 of risk and trade result is still pending.
- Short at 5:00 am using a 5 minute binary option at 1.3131 for $28.25 in risk and a profit of $51.75 was achieved.
The first red arrow indicates the first three entries. The second arrow indicates the entry for the 5-minute binary option.