It all begins with a plan.. as the saying goes “If you fail to plan, you plan to fail” so I sat down an I thought about how I had been trading. Mostly I had been practicing on 5 minute binaries. What I needed was a bit more structure. Before had read that having a written trading plan is critical to the success in trading. The clearly defined rules of a plan help to keep you out of bad trades. So I sat down and formulated the daily NADEX trading plan you see here.
Lets face it trading the 5 minute binaries are probably the hardest NADEX trade you can do… definitely the most stressful. One of the issues I knew I was facing was over trading. So I looked to take fewer trades and for a plan that would give me less stress and flexibility through out the day. Here is what what came up with. You can also download the plan if you like. Trade it or modify to fit your trading style. Also Apex Investing has a daily news trading plan you can follow.
Daily NADEX Trading Plan
| STRATEGY | TIME (EST) | INSTRUMENT | MIN TARGET | RULES |
|---|---|---|---|---|
| TRADE PREP | 630 AM - 7 AM | CHECK ECONOMIC NEWS AFFECTING THE INSTRUMENT MAKE SURE CHARTS SET UP PROPERLY CHECK DAILY, 4H, 1H, 30M 15M TO GET A SENSE OF TRENDS |
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| STRUDEL/DAX | 7 AM - 9 AM | DAX | $20 P/C | 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. |
| BRUNCH/FTSE | 9 AM - 11 AM | FTSE 100 | $20P/C | SELECT THE 9AM-11AM EST NADEX TIME PERIOD FOR THE FTSE 100 (FTSE) INDEX. IF THE 9AM EST HOURLY CANDLESTICK IS BULLISH, THEN BUY AT THE FIRST NADEX STRIKE PRICE AVAILABLE BELOW THE OPENING PRICE OF HOURLY CANDLESTICK. IF THE 9AM EST HOURLY CANDLESTICK IS BEARISH, THEN SELL AT THE FIRST NADEX STRIKE PRICE AVAILABLE ABOVE THE OPENING PRICE OF HOURLY CANDLESTICK. |
| BREAK | 11 AM - 11:30 | |||
| TRADE PREP | 11:30 AM - 12PM | CHECK ECONOMIC NEWS AFFECTING THE INSTRUMENT MAKE SURE CHARTS SET UP PROPERLY CHECK DAILY, 4H, 1H, 30M 15M TO GET A SENSE OF TRENDS |
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| CARET ITM | 12:30 AM-1 PM | ES/NQ/TF/YM | $20 P/C | WATCH INDICES ON 15M CHART, LOOK FOR VOLUME TO FALL OFF AS PRICE RISES GOING INTO LUNCH. BEARISH CANDLE & FISHER TRANS WILL CONFIRM REVERSAL FOR A FADE. BUY STRIKE ABOVE MARKET. |
| IRON BUTTERFLY | 12:30 AM-1 PM | ES/NQ/TF/YM | $20 P/C | WATCH INDICES ON 15M OR 5M CHART, LOOK FOR FLAT MARKET ALONG WITH VOLUME FADING. BUY STRIKE ABOVE/BELOW. |
| BREAK | 1 PM - 730 PM | |||
| TRADE PREP | 730 PM - 8 PM | CHECK ECONOMIC NEWS AFFECTING THE INSTRUMENT MAKE SURE CHARTS SET UP PROPERLY CHECK DAILY, 4H, 1H, 30M 15M TO GET A SENSE OF TRENDS |
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| SAUSAGE/SUSHI | 8 PM - 11PM | EUR/JPY | CHECK ECONOMIC NEWS FOR EUR OR JPY OCCURING BETWEEN 6-11PM AT 8PM PLOT HIGH AND LOW PRICE ON FROM 6PM - 8PM USING REGULAR CANDLES ON 15M CHART DRAW HIGH &LOW LINES ON CANDLE BODIES FOR A SELL AFTER 8PM, IF A CANDLESTICK CLOSES BELOW THE 6PM-8PM SUPPORT LINE, THEN SELL ON THE CLOSEST STRIKE PRICE AT OR ABOVE THE SUPPORT LINE FOR A BUY AFTER 8PM EST, IF A CANDLESTICK CLOSES ABOVE THE 6PM-8PM RESISTANCE LINE, THEN BUY AT THE CLOSEST STRIKE PRICE AVAILABLE AT OR BELOW THE RESISTANCE LINE. YOU CAN PLACE A MARKET ORDER IF YOU WANT YOUR ORDER FILLED IMMEDIATELY, OR YOU CAN PLACE A WORKING/LIMIT ORDER IF YOU WANT TO ADJUST YOUR RISK/REWARD. PRICE IS NORMALLY TESTED HEAVILY BETWEEN 9PM 10PM YOU MAY WISH TO WALK AWAY DURING THIS POINT AND COME BACK AROUND 10PM -10:15PM EST PAY ATTENTION TO THE TREND DIRECTION AND NEWS. |
Have you ever sat down a wrote out your own daily NADEX trading plan? If you have not you really should consider doing so. Putting together a trading plan will help you have a clear goal and be more focused going into your trading day. Setting the time, strategy, price levels and profit targets are key. It will help you to be a more disciplined trader if you have clearly written rules for each trade. Sean Jantz of BTG makes a daily battle plan of the trades he intends to take. His daily plan seems to vary depending on the market conditions. Of course my trading plan is only a guide, I too have to adapt to changing market conditions as needed.