Binary Options Trading Log 6-30-15

Daily Binary Options Trading Log

According to my daily trading plan, the day is supposed to start off with with the DAX "Strudel trade". Today however, I accidentally opened the FTSE 100. I must not have been firing on all cylinders. I didn't realize my error until I was already into the trade. (Note to self---PAY ATTENTION TO DETAILS!!!!!)

The rules for the strategy are dead simple

Select the 7am-9am EST Nadex time period for the Germany 30 (DAX) Index.
If the 7am EST hourly candlestick is BULLISH, then BUY at the first Nadex strike price available BELOW the opening price of hourly candlestick.
If the 7am EST hourly candlestick is BEARISH, then SELL at the first Nadex strike price available ABOVE the opening price of hourly candlestick.

FTSE 100 (9AM)

First I checked upcoming news events and then daily then hourly charts. Then I looked deeper at the 15 and 5 minute charts. The candles looked good, a bullish move up so I entered 10 added another 10 when I got a better price a few minutes later.

Trade Details:
Contract: FTSE 100 (Sep) >6513 (9AM)
Expiration: Tue Jun 30 09:00:00 EDT 2015
Direction: BUY
Quantity: 10
Price: 85.00

Trade Details:
Contract: FTSE 100 (Sep) >6513 (9AM)
Expiration: Tue Jun 30 09:00:00 EDT 2015
Direction: BUY
Quantity: 10
Price: 83.50

10 minutes later I wanted to add to my position, I was comfortable with my previous strike so I entered for 10 more. Only I later realized after that I had chosen the wrong strike. This strike was too close for me and not within the rules of the trade as it was not below the current hourly candle.(Note to self---PAY ATTENTION TO DETAILS!!!!!)

Trade Details:
Contract: FTSE 100 (Sep) >6528 (9AM)
Expiration: Tue Jun 30 09:00:00 EDT 2015
Direction: BUY
Quantity: 10
Price: 80.25

The trade had began to reverse direction so I exited the last position I took as I felt that move would continue. I wasn't comfortable with the strike and had taken it by mistake so it was easy to convince myself to puke out. It took 15 minutes before it reached my strike. The trend reversed with out crossing the strike but I had already puked. So its $112.5 Loss + $18.00 in Fees = $130.5 Total loss on the trade.

Trade Details:
Contract: FTSE 100 (Sep) >6528 (9AM)
Expiration: Tue Jun 30 09:00:00 EDT 2015
Direction: SELL
Quantity: 10
Price: 69.00

Ten minutes after the the candle hit my strike we were in a strong reversal I felt would hold to expiry.  I saw the opportunity to make up my loss on the previous trade.  I entered 2 more positions

Trade Details:
Contract: FTSE 100 (Sep) >6543 (9AM)
Expiration: Tue Jun 30 09:00:00 EDT 2015
Direction: SELL
Quantity: 60
Price: 4.50

Trade Details:
Contract: FTSE 100 (Sep) >6528 (9AM)
Expiration: Tue Jun 30 09:00:00 EDT 2015
Direction: BUY
Quantity: 20
Price: 86.50

All 3 strikes were held until expiry for a full profit.

TRADE Contract: FTSE 100 (Sep) >6513 (9AM)
Expiration: Tue Jun 30 09:00:00 EDT 2015
Direction: BUY
Quantity: 10
Price: 85.00
Contract: FTSE 100 (Sep) >6513 (9AM)
Expiration: Tue Jun 30 09:00:00 EDT 2015
Direction: BUY
Quantity: 10
Price: 83.50
Contract: FTSE 100 (Sep) >6528 (9AM)
Expiration: Tue Jun 30 09:00:00 EDT 2015
Direction: BUY
Quantity: 20
Price: 86.50<
Contract: FTSE 100 (Sep) >6543 (9AM)
Expiration: Tue Jun 30 09:00:00 EDT 2015
Direction: SELL
Quantity: 60
Price: 4.50
P/L $150.00 $165.00 $270.00 $270.00
FEES $18 $18 $18 $18
TOTAL $132 $117 $252 $252

 

$252 + $252 + $132 + $117 - $130.5 = $622.5

FTSE 100 (11AM)

The hourly candle for 8 am was bearish.  I had feeling this trend would continue based on the chart and weak volume so at 9:25 am I picked a strike above the close of the hourly candle. The trend continued and I held to expiry for a full profit.

Trade Details:
Contract: FTSE 100 (Sep) >6535 (11AM)
Expiration: Tue Jun 30 11:00:00 EDT 2015
Direction: SELL
Quantity: 20
Price: 13.75

$275 - 18 = $257

Summary

Overall I feel I traded well but my attention to detail caused me to have my only loss on the day. Also I am not sure if it was the right move putting on 60 contacts to make $252. That is a lot of risk for so little. I could have just doubled up on the 6528 strike and I would have made more with less fees and a whole lot less risk. The lesson here is do the quick math on on the risk.  $662.5 + $257= $879.5 total profit. Not bad for 4 hours work.

 
Keyword: binary options trading log, FTSE 100, DAX, NADEX
 

OK you have read this far thank you so much! Now its your turn to take action. Tell me what do you think I can do improve my trading? Tell What will you do this week to improve yours?
Dustin Donham

Dustin Donham

Webmaster / Trader / Marketing Guy at Forex Forge
Dustin is a humble student of the markets, traveler & all-around badass. When not trading he works with private clients to improve their online marketing efforts. Fo sho.

He enjoys outdoor activities, a perfect day for him would be a trek to remote waterfalls followed by a some whitewater paddling or a bike trail ride.
Dustin Donham

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