Using risk to reward increases your chances of being profitable when trading Nadex touch brackets and binaries. Why? Because traders will lose and they need to anticipate the losses ahead of time.

On November 21, 2019, there were multiple trades entered on the GBPUSD and EURUSD forex pairs combining both binary options with touch brackets.

Notice that on the EURUSD both a long and short position were entered. The short position was a touch bracket and the long was a binary option (in case the market went against the touch bracket). Both trades made money.

On the GBPUSD, there were a total of five trades combining touch brackets and binaries. One short touch bracket lost and one made money. One binary option lost money and two made money.

Overall the winning percentage was 70% and traders were profitable for the day. However, also note that the risk to reward on each trade, on entry, was greater than $1 : $1.5. Even though that was not achieved on every trade the gross profit was $301 for the day and the net profit (after exchange fees) was $279.

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