Least /Most Volatile Currency Pairs
Below you will find a chart comparing currency pair volatility. This is good to know if you are looking to develop an OTM strategy set on a daily expiry. When looking to develop a strategy you need to think about a few things. What pairs have the most range in a day? the least? Also below you can see the average daily range in pips per pair.
More recently pulled data shows pip change in daily range but not order.
NADEX Pairs 7-20-15
Currency Pair Volatility OTM Strategy
As the chart shows the GBP/JPY is most volatile currency pair traded on NADEX. EUR/GBP is the least volatile. I know of one trading service that charges a large fee ($600) to teach you how to make money off of OTM trades. The pair they are trading? The GBP/JPY.
Their basic strategy is as follows. At 11PM EST place a straddle trade 60-80 pips out from the current price on the next day's 7PM EST expiration. Pretty simple stuff. I back tested this strategy for 6 months from June to Jan 2015 and found it to be an overall winner. But it had large periods of draw down. A few times the strategy lost 12-14 days in a row. But keep in mind this was using the 80 pip threshold and no risk management. Because its an OTM the high return covered the long draw downs.
Do your own back testing and see what you come up with. Personally I think if you wait to place the trade when there is a med to high impact news event affecting these pairs to hit the next day, you will have a much better chance of success.
Here is a chart for NADEX pairs
Its also good to know if trading a five minute binary that USD/JPY is the least volatile with AUS/USD a close second. Of the 4 currency pairs on the NADEX 5 min binaries and GBP/USD is the most volatile.
Here is a list places you can find this information that are kept up to date.