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MightyOne
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Postby MightyOne » Tue Oct 06, 2009 3:24 pm

aliassmith wrote:
MightyOne wrote:
aliassmith wrote:
MightyOne wrote:
aliassmith wrote:GBP/USD > 1.5938 by 11am

buy at $25 per option
made $1400 on 19 options

Not sure exactlly how it works yet but it looks interesting.


If you use the closest strike as a reference then you will always know which action to take when it comes time to enter a trade.

Enter 2 strikes higher: More risk, but profits from smaller moves
Enter 3 strikes higher: Less risk, but profits from larger moves

3: 1.5998 <---Long this strike at <10 (buy low)
2: 1.5978 <---Long this strike at <20 (long on low numbers)
1: 1.5958
--------------3's boundary for longs---1.5948 (2's boundary for shorts)
0: 1.5938 <---Current price between 1.5948 & 1.5928
--------------3's boundary for shorts---1.5928 (2's boundary for longs)
1: 1.5918
2: 1.5898 <---Short this strike at >80 (short on high numbers)
3: 1.5878 <---Short this strike at >90 (sell high)

GBP/USD > 1.5978 by 11am:

If close > 1.5978 by 11am option settles at 100
If close < 1.5978 by 11am option settles at 0

If long the 1.5978 strike at 20 and price settles at 100 then profit = 80.
If short the 1.5898 strike at 80 and price settles at 0 then profit = 80.

When long, the price you pay + commission = risk
When short, 100 - Price you pay + commission = risk


MO,

I was looking at it a bit more. You could take strike prices out further
for less risk. You still have the opportunity to exit the trade when you
want.

learning Nadex platform is different than spot.

edit.... almost forgot, spread is about $7/option


I noticed the high spread :shock:

Enter at your price or better.

If the market continues to rise then it will be at the lower end of the next higher strike and the strikes 2 and 3 higher should be available for the price you wish to pay.

If you can get an option 2 strikes higher for <15 then go with that one
or
Just purchase the option 3 strikes higher for <10
or
wait.

6 hour bars or greater + weekly binary = way to go


Seems like it would be harder to do your 5 wins in a row each week with
those timeframes.

edit: GBP/USD > 1.5820 by 3pm EST
Sold 11 options at 82

hedge GBP/USD > 1.6000 by 3pm EST
Buy 11 options at 18


The 5 wins in a row matters a hell of a lot more than each week.

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aliassmith
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Postby aliassmith » Tue Oct 06, 2009 3:43 pm

MightyOne wrote:
aliassmith wrote:
MightyOne wrote:
aliassmith wrote:
MightyOne wrote:
aliassmith wrote:GBP/USD > 1.5938 by 11am

buy at $25 per option
made $1400 on 19 options

Not sure exactlly how it works yet but it looks interesting.


If you use the closest strike as a reference then you will always know which action to take when it comes time to enter a trade.

Enter 2 strikes higher: More risk, but profits from smaller moves
Enter 3 strikes higher: Less risk, but profits from larger moves

3: 1.5998 <---Long this strike at <10 (buy low)
2: 1.5978 <---Long this strike at <20 (long on low numbers)
1: 1.5958
--------------3's boundary for longs---1.5948 (2's boundary for shorts)
0: 1.5938 <---Current price between 1.5948 & 1.5928
--------------3's boundary for shorts---1.5928 (2's boundary for longs)
1: 1.5918
2: 1.5898 <---Short this strike at >80 (short on high numbers)
3: 1.5878 <---Short this strike at >90 (sell high)

GBP/USD > 1.5978 by 11am:

If close > 1.5978 by 11am option settles at 100
If close < 1.5978 by 11am option settles at 0

If long the 1.5978 strike at 20 and price settles at 100 then profit = 80.
If short the 1.5898 strike at 80 and price settles at 0 then profit = 80.

When long, the price you pay + commission = risk
When short, 100 - Price you pay + commission = risk


MO,

I was looking at it a bit more. You could take strike prices out further
for less risk. You still have the opportunity to exit the trade when you
want.

learning Nadex platform is different than spot.

edit.... almost forgot, spread is about $7/option


I noticed the high spread :shock:

Enter at your price or better.

If the market continues to rise then it will be at the lower end of the next higher strike and the strikes 2 and 3 higher should be available for the price you wish to pay.

If you can get an option 2 strikes higher for <15 then go with that one
or
Just purchase the option 3 strikes higher for <10
or
wait.

6 hour bars or greater + weekly binary = way to go


Seems like it would be harder to do your 5 wins in a row each week with
those timeframes.

edit: GBP/USD > 1.5820 by 3pm EST
Sold 11 options at 82

hedge GBP/USD > 1.6000 by 3pm EST
Buy 11 options at 18


The 5 wins in a row matters a hell of a lot more than each week.


Got you!
Trade Your Way as Long as It Makes Money!

frang0nve
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Postby frang0nve » Tue Oct 06, 2009 3:58 pm

Thanks a lot MO!!

Francisco

aliassmith
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Postby aliassmith » Tue Oct 06, 2009 5:08 pm

aliassmith wrote:
MightyOne wrote:
aliassmith wrote:
MightyOne wrote:
aliassmith wrote:GBP/USD > 1.5938 by 11am

buy at $25 per option
made $1400 on 19 options

Not sure exactlly how it works yet but it looks interesting.


If you use the closest strike as a reference then you will always know which action to take when it comes time to enter a trade.

Enter 2 strikes higher: More risk, but profits from smaller moves
Enter 3 strikes higher: Less risk, but profits from larger moves

3: 1.5998 <---Long this strike at <10 (buy low)
2: 1.5978 <---Long this strike at <20 (long on low numbers)
1: 1.5958
--------------3's boundary for longs---1.5948 (2's boundary for shorts)
0: 1.5938 <---Current price between 1.5948 & 1.5928
--------------3's boundary for shorts---1.5928 (2's boundary for longs)
1: 1.5918
2: 1.5898 <---Short this strike at >80 (short on high numbers)
3: 1.5878 <---Short this strike at >90 (sell high)

GBP/USD > 1.5978 by 11am:

If close > 1.5978 by 11am option settles at 100
If close < 1.5978 by 11am option settles at 0

If long the 1.5978 strike at 20 and price settles at 100 then profit = 80.
If short the 1.5898 strike at 80 and price settles at 0 then profit = 80.

When long, the price you pay + commission = risk
When short, 100 - Price you pay + commission = risk


MO,

I was looking at it a bit more. You could take strike prices out further
for less risk. You still have the opportunity to exit the trade when you
want.

learning Nadex platform is different than spot.

edit.... almost forgot, spread is about $7/option


I noticed the high spread :shock:

Enter at your price or better.

If the market continues to rise then it will be at the lower end of the next higher strike and the strikes 2 and 3 higher should be available for the price you wish to pay.

If you can get an option 2 strikes higher for <15 then go with that one
or
Just purchase the option 3 strikes higher for <10
or
wait.

6 hour bars or greater + weekly binary = way to go


Seems like it would be harder to do your 5 wins in a row each week with
those timeframes.

edit: GBP/USD > 1.5820 by 3pm EST
Sold 11 options at 82

hedge GBP/USD > 1.6000 by 3pm EST
Buy 11 options at 18


both are out of the money at -$200 each.
Trade Your Way as Long as It Makes Money!

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cfabian
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Postby cfabian » Wed Oct 07, 2009 2:36 am

Is there a place I can go to further know about binary options? Probably some tutorials would be of great help.

Cheers
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frang0nve
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Postby frang0nve » Wed Oct 07, 2009 3:12 am

cfabian wrote:Is there a place I can go to further know about binary options? Probably some tutorials would be of great help.

Cheers


Hi Fabian,

Did you see my post at page 10 in this thread?

http://kreslik.com/forums/viewtopic.php ... ght=#27279

You'll find an index and link there.

Cheers

Francisco

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***FX-JEDI***
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Postby ***FX-JEDI*** » Wed Oct 07, 2009 11:33 am

Thanks for your reply MO,
I have much to learn..

FX-JEDI,

The area where you marked "momentum reduced" was not momentum. Ok, I marked it momentum because I thought if its body is more then 2x the size of the previous candle then that is a momo candle,

If the candle labeled with a white 4 was not momentum then the candle you marked could not be momentum. this is because its body is approx the same as candle with a 4 marked on it? & is nowhere near the size of the other momentum candles marked

This is why you have to compare to recent non-momentum and then compare the possible momentum candle to real momentum of the past.Ok so I stared at your chart for ages... so now looking at your new examples, I can see that the candles marked non momentum have a small range from their open to close, whilst the 5 you marked with a white thumbs up, for momentum candles their range of open to close far exceeds the rest of the candles on the chart this is momentum, & this is what you compare the possible momentum candle to, is its range of open to close similar to past momentum

The dotted white boxes were mirrors of the open to close connections between momentum and hugging candles. hmm so I assumed that it was, what is the reason behind this, i'm thinking you wouldn't put it on there if it weren't important.

X is used to mark the candle that is being acted upon.

I need to go back & read all your posts again...I am still an apprentice.... but I understand more & more each time I look at them.... thanks once again MO
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MightyOne
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Postby MightyOne » Wed Oct 07, 2009 1:58 pm

***FX-JEDI*** wrote:Thanks for your reply MO,
I have much to learn..

FX-JEDI,

The area where you marked "momentum reduced" was not momentum. Ok, I marked it momentum because I thought if its body is more then 2x the size of the previous candle then that is a momo candle,

If the candle labeled with a white 4 was not momentum then the candle you marked could not be momentum. this is because its body is approx the same as candle with a 4 marked on it? & is nowhere near the size of the other momentum candles marked

This is why you have to compare to recent non-momentum and then compare the possible momentum candle to real momentum of the past.Ok so I stared at your chart for ages... so now looking at your new examples, I can see that the candles marked non momentum have a small range from their open to close, whilst the 5 you marked with a white thumbs up, for momentum candles their range of open to close far exceeds the rest of the candles on the chart this is momentum, & this is what you compare the possible momentum candle to, is its range of open to close similar to past momentum

The dotted white boxes were mirrors of the open to close connections between momentum and hugging candles. hmm so I assumed that it was, what is the reason behind this, i'm thinking you wouldn't put it on there if it weren't important.

X is used to mark the candle that is being acted upon.

I need to go back & read all your posts again...I am still an apprentice.... but I understand more & more each time I look at them.... thanks once again MO


I thought that I would answer your questions with a more in depth chart.

This is the eye-pattern that I use when analyzing a chart:

1-2-3-4: Compare to non-momentum
A-B-C-D: Compare to momentum
Remember everything for later use


A non-momentum price leg or slow anything feels for a better price to enter in the opposite direction

In the second picture 4. should be read: Short Momentum Extended

ImageImage

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MightyOne
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Postby MightyOne » Wed Oct 07, 2009 3:50 pm

If some of you still do not get it...

(MY) Analysis is not about a rigid pattern!

Momentum is not simply a 2x larger bar, but you have to start somewhere.

Analysis answers questions:

Is the market moving up?
Is the market moving down?
How do I define a rising or falling market?

How fast is the market moving?
What does a slow moving market look like?
What does a fast moving market look like?

Is the market being supported or resisted?
Do I consider a line or an area to be S&R?
What type of price reaction is needed for a line or area to be called S&R?

Trading Analysis is completely different:

Do I trade with candle color?
What is color?
Do I widen the open price to an "open area" to define color?
What triggers a trade?
What justifies an exit?
Am I targeting: small pips, small pips to buffer a larger trade, or large pips only?

What is my average draw down on a successful trade?
How far beyond my SL has price usually moved before reversing?
If I move my entry down to the avrg. draw down what % of winning trades will I possibly miss out on?
What % of past losing trades were potentially profitable?
Should I tighten or widen my stop loss?

yada yada..... :roll:

I don't blame the average trader for wanting to just sit down and push a few buttons :lol:

aliassmith
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Postby aliassmith » Wed Oct 07, 2009 4:53 pm

MightyOne wrote:If some of you still do not get it...

(MY) Analysis is not about a rigid pattern!

Momentum is not simply a 2x larger bar, but you have to start somewhere.

Analysis answers questions:

Is the market moving up?
Is the market moving down?
How do I define a rising or falling market?

How fast is the market moving?
What does a slow moving market look like?
What does a fast moving market look like?

Is the market being supported or resisted?
Do I consider a line or an area to be S&R?
What type of price reaction is needed for a line or area to be called S&R?

Trading Analysis is completely different:

Do I trade with candle color?
What is color?
Do I widen the open price to an "open area" to define color?
What triggers a trade?
What justifies an exit?
Am I targeting: small pips, small pips to buffer a larger trade, or large pips only?

What is my average draw down on a successful trade?
How far beyond my SL has price usually moved before reversing?
If I move my entry down to the avrg. draw down what % of winning trades will I possibly miss out on?
What % of past losing trades were potentially profitable?
Should I tighten or widen my stop loss?

yada yada..... :roll:

I don't blame the average trader for wanting to just sit down and push a few buttons :lol:


MightyOne,

I would be happy to push a few buttons if I could make my goal :)

Truth is I am happy with any information you share that helps me achieve my goal of about 35% to 60% a month return. 8)
Trade Your Way as Long as It Makes Money!

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