Lazy market
It is much easier to trade volatility than price. Half of the 1.3520 ladder closed at 67.3. All costs covered and some profit booked.
The rest of the 1.3520 ladder closed at 60 just before the NY cut. I think that this downward price move was connected with the option expiry
Another volatility trade with binarystrangle. Payout for each option is 100 pts. Max risk 10.5 pts. profit 89.5 pts.
Very Good trades. Subscribed
Following the big money every time, I don’t get to follow the conventions always though; I try to always get an edge.
If you don’t have an edge you are doomed. Trading is a zero sum game. When you make money someone else is losing.It’s that simple.
Net position of the Non-commercials (speculators) is slightly negative. This is due mainly to decrease in the shorts, but also new longs are open. This could mean that someone used the recent slow upward move to close longs. Bulls should beware. Dovish Draghi or strong NFP could start new leg of the downtrend
I had read your post,it’s informative and includes way to earn money.
Days with major economic events provide pretty good opportunities for volatility trading. That is one of my positions. Long binary strangle. Ladder with 1.3510 strike was closed at average price of 81 minutes after Super Mario’s Press conference. It was clear that EUR/USD is going easier north. 1/3 of the 1.3640 ladder was closed at 45.6, 1/3 at 75.8, 1/3 at 93.7 (10 minutes before the expiry).I will explain in details this position in a video and may be it is time for another book focusing on volatility trading.
Tomorrow I will trade US employment report the same way.
OT binary options are very expensive today. This means that brokers expect higher volatility even for a day with NFP data. There is 25% probability for 100 pips price move in either direction. Don’t forget the stops if you have spot position. Much better way is to trade the volatility with options.
Strangles are usually non-directional strategy for trading of volatility. Sometimes I use strangles with a bias if there is a set up. This time it was test of the 200 EMA. Total cost of the strangle was was 10 pts, for max profit of 90 pts. USD/JPY had to move 10 pips in any direction for period of 35 minutes. 20 minutes before the expiry I bought another ladder for 10 pts. with smaller payout that was sufficient to cover the costs twice.
