Binary Options Trading Log 7-13-15

Daily Binary Options Trading Log

I keep my track of my trades on this daily binary options trading log. Let's discuss them. We will look at my entries and exits and my decision making / thought process along the way. Usually I make two trades a day, the 7-9am DAX Strudel Trade and the 9-11am FTSE Brunch trade.

I love trading these 2 trades because they are back to back time frames and the rules for each strategy are exactly the same. The strategy for these trades was given to me by Cam White on his blog The Inquisitive Trader. Sometimes I take two or even three positions on these trades if it makes sense. Focusing on these two trades a day has done a few important things for me.

  1. Prevented me from over trading.
  2. Focused me on mastering a trade.
  3. Focused me on 2 instruments only the DAX & FTSE.

Wait I thought this site is about trading Forex Binary Options?

We will get to that but for now I am mainly trading the DAX and the FTSE. I do practice trading the 5 Min binary currency pairs usually only for an hour a night...

Today I missed the DAX trade. I had some useless Army training to attend that was summarily cancelled as soon as I arrived. Typical government efficiency. Then a meeting after that kept me from getting back in a timely manner to see if I could take a trade. Oh well some times its better not to force things and sit on your hands... remember holding cash is a position too. So when I finally got in and checked the news this is what I saw.
Keyword: binary options trading log, FTSE 100, DAX, NADEX

OK you have read this far now its your turn... Please give me a comment. Where do you think I can improve. Are there any sustains?

 

News 7-13-15
Today's news events

 

 

There was a pretty clear day news wise... I thought the 0900 meeting may have some effect on the FTSE but none was felt... check out the Investing.com calendar for the days news events. I usually only set the filter on the calendar to look the relevant currencies and med to high profile events.  You can so that by selecting the filer option above the calendar.

9-11AM FTSE "Brunch" Trade

 

I opened up my hourly chat. I had seen that the Euro Zone had again voted to bail out Greece for a 3rd time over the weekend. I knew this would cause a spike in the market and sure enough there was a huge opening gap up on that news. See that huge green candle? There is your gap up.  So the rules for the FTSE trade are pretty simple. If the 9AM candle is confirmed green (bullish) then buy the strike just below the open of the 9am candle. If it is red (bearish) then you sell the strike just above the candle.

FTSE 1H-7-13-15 0945
FTSE 1H Chart at 9:45 AM

 

So here i am looking at this chart and everything is telling me I am gonna see a bearish candle for the 9am candle close.The MACD indicator and Stochastic seemed to indicate a downtrend forming. so I dig into the 5m chart to see what I can come up with as an attractive strike to sell. Looking back the market had fallen to the 6668 price and hovered sideways with slight whipsaw for the last several hours. I decided to sell strike nearest too the last high (resistance) before the fall.

FTSE 5M-7-13-15 0934
FTSE 5M chart at 9:44 AM

 

Your order was executed on: Mon Jul 13 09:30:45 EDT 2015. The details of your matched trade are shown below for your reference:

Trade Details:
Contract: FTSE 100 (Sep) >6683 (11AM)
Expiration: Mon Jul 13 11:00:00 EDT 2015
Direction: SELL
Quantity: 10
Price: 22.00

 

The market continued its sideways action. So 40 minutes after I took this position I set a working order to take 10 more contracts should the price rise to be more favorable $25. This is one of my weak areas, picking a good entry and having the patience to wait for it. My instinct said to set it at $30 but I set it at $25.

FTSE 5M-7-13-15 0948
FTSE 5M Chart at 9:48 AM

 

A few minutes later price rose and I was filled....

Your order was executed on: Mon Jul 13 10:09:26 EDT 2015. The details of your matched trade are shown below for your reference:

Trade Details:
Contract: FTSE 100 (Sep) >6683 (11AM)
Expiration: Mon Jul 13 11:00:00 EDT 2015
Direction: SELL
Quantity: 10
Price: 25.00

 

Price continued to rise so I took advantage and bought another 10 contracts... The 6683 line had held since 0320 am that morning and I didn't think it was gonna break it now.

Your order was executed on: Mon Jul 13 10:18:11 EDT 2015. The details of your matched trade are shown below for your reference:

Trade Details:
Contract: FTSE 100 (Sep) >6683 (11AM)
Expiration: Mon Jul 13 11:00:00 EDT 2015
Direction: SELL
Quantity: 10
Price: 33.50

FTSE 5M-7-13-15 1019
FTSE 5M Chart at 10:19 AM

So now I was into the trade for 30 contracts at an average price of $26.83 a contract. I had an opportunity to get in at over $50 a contract on this top of this price rise. Imagine if I had the patient to wait. Instead of buying in early. As they say hind sight is 20/20 the trade could have easily plummeted and I would have been left to take a lower strike and maybe not at such a good price..

 

As I watched the market crested and thankfully began to fall. That's another good thing about this trade. It ends as the mornings trading starts to taper off for the lunch hour. Just when I breathed a sigh of relief it started to head back up. It was a little to close for comfort so I took profit for $340 with 4 minutes left to expiry. What I noticed later really jerked my chain...

FTSE 5M-7-13-15 FINAL

 

 

 

 

On the chart above the price look uncomfortably close to my strike... this caused me to get nervous and close out my trade early for less than half of what I would have earned had I held on too at expiry.

Your order was executed on: Mon Jul 13 10:55:59 EDT 2015. The details of your matched trade are shown below for your reference:

Trade Details:
Contract: FTSE 100 (Sep) >6683 (11AM)
Expiration: Mon Jul 13 11:00:00 EDT 2015
Direction: BUY
Quantity: 20
Price: 14.50

($26.83 - $14.50) 20 = $246.6 Gross

Your order was executed on: Mon Jul 13 10:56:03 EDT 2015. The details of your matched trade are shown below for your reference:

Trade Details:
Contract: FTSE 100 (Sep) >6683 (11AM)
Expiration: Mon Jul 13 11:00:00 EDT 2015
Direction: BUY
Quantity: 10
Price: 14.75

($26.83 - $14.75) 10 = $120.8 Gross

After I had closed this trade I bounced between the hourly chart and the 5 min chart. When I came back on the 5m chart what I saw shocked me.. There is no way I should have closed out that trade! I basically screwed myself out of another $400.  Next time I will take closer look at my chart... I don't know why the zoom was at the other level the entire trade but it was. My strike was never in danger!!!!!!!!!!!!

 

FTSE 5M-7-13-15 FINAL CLOSE
Arrow shows my exit... FAR below my strike.

 

 

 

 

Summary

I really need to work on my entry.. if I had gotten a better entry I would have carried half the risk. You only need 20 contracts at $40 to make $800 vs 30 at $26 to make $780 yet you about $1000 more to make less money. I also need to make damn sure I looking at the best view of the chart. That knee jerk reaction I had cause me to miss out on a full expiry. Still half is better than none.

$367.4 Gross - $18 fees = $349.4 (-87.35  25% Tax Rate) = 262.05 Total Profit.

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 me what will you do 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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