For entertainment purposes only, go over to YouTube and search for "Brandon Williams binary options". There, to your utter amazement, winning trade after winning trade, taking risks on 3 pip noise moves in 5 min time spans on a dead 3 pm EST AUD/USD currency pair, for example, for 75-80% chance bets of staying in the money (whatever that means on listless, off-hours trading noise).
You'll notice he hasn't shown a trade in over a month. Well, when he admitted that he's got $60K worth of subscribers to his training vids on his website, a very decent side-hustle I would say, what's the point, right?
I like it when you point out the horrible spreads will kill off any perceived long-term odds of having a positive expectancy and then you're the bad person. As this generation likes to say, you're just "being a hater".
That guy and the copy cat marketers like him are making a lot of waves these days. I don't care. More suckers on the exchange will hopefully get the spreads down. Liquidity providers.
Nadex does have awful bid/ask spreads. Just need to pick your spots and go for expiration trades or be consistent and accurate enough to pay for the overhead.
Having said that, making a few bucks trading AUD/USD on 10-20 pip noise with Nadex ITM binaries is actually not that hard. Since Binaries can have fixed cost/payout, the idea is to get on the right side of the r:r ratio or be on the right side of the required win rate or a little combo of both. Then use risk reduction strategies like the equiv of Iron Butterflies or if the range and/or trend is going in one direction, then doing whatever buying selling a higher strike in the same direction is called.
Know the range for the time period, see if price is at near the range, then get in on an ITM binary. Basically risk is 70-75 max to make 25-30 max. That's a loser prospect over time without a risk reduction plan. So either cut'm short if they get down 50 or hedge with something similar to an Iron Butterfly or go same direction with a higher ITM.
I also do a lot of OTM binaries and just set orders to get out on the touch rather than hope/pray for the positive expire. R:R is usually better than 1:1, so again, being on the right side of the required win rate helps. I only do those during expected periods of movement and go for strikes well within the expected range which for currencies is the London open through London close. I set 'em up, go to bed. If they've cashed over night, yay. If not, I evaluate. If ATR is put in , I might hedge out and set up the equiv of an Iron Butterfly or go in the same direction with an ITM if the setup is there.
I do this regularly with f**k around money. I don't trade these for a living or claim that I can make 10000000% in a month. I make more than enough to cover my sushi/saporro habit, though.
Long story short... it is possible to be profitable with Nadex binaries. It isn't anywhere near as easy as the marketing and youtube kids will make it out to be. And the costs are higher compared to other instruments and markets. It's retail land. Just gotta be better than the average retail trader.
