Going to read up as much as I can but looking for some real-world advice / experience....
We all know that standard BO trading is hampered by trading against the dealer. They have no reason to allow you to be successful long-term as it costs them money in most cases. Agreed?
So, if you have a successful BO strategy how easy is it to adapt it to work in Nadex or Forex? Presumably that depends on the strategy.
Here's an example using a fairly typical BO strategy:
- if conditions are right at the close of a candle (let's just say it's no more complicated than an arrow saying "call" or "put"), I place a £10 trade for 5mins (approx 80% payout)
- if I win, great - I get £8 profit
- if I lose, I then trade the next candle at £12.50
- if I win that 2nd trade, I recoup the £10 lost on the 1st trade and end there at breakeven, and wait for the next setup
- if I lose, however, I then trade the next candle at £28
- if I win, I recoup the £22.50 and end there at breakeven, and wait for the next setup
- if I lose, I accept losses of £10+£12.50+£28, and wait for the next setup
So there is potentially a 2-step martingale involved, but let's assume the strategy was successful enough that the wins on the first candle outweighed the losses and made it worthwhile. Whether the strat is good / bad / indifferent isn't the issue here.
The advantages of BO with this strat are that:
- you have a fixed expiry time so know exactly when to enter a trade, how long before you get a win / lose outcome and when to enter the next candle if necessary
- you know exactly how much you will win / lose at all times, so can calculate 2nd or 3rd candle amounts exactly to cover previous outlay
- it doesn't matter what amount you're right or wrong by: a losing 1 micropip candle costs you no more than a losing 10 pip candle
I have no experience of Forex or Nadex but they seem widely regarded as much safer options for making long-term profit, as you're battling other traders and not brokers. However with a strategy like that above - based on black and white criteria and knowing exactly how much you need to trade to recover losses and how much profit you will make each time - I'm not sure if it can translate to Nadex or Forex.
Does anyone have any constructive thoughts on this? Or experience of adapting a martingale-style strategy to Nadex / Forex? Or best of all, a BO broker that loves you to win £150 each day and pays up without question (ha ha ha ha ha.......)?