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  1. #1
    Legendry Member Michael Hodges's Avatar

    How To Choose The Right Expiry/Timeframe for NADEX Trading !!!

    I get asked this question a lot, in one form or another. . . How do you choose the right time frame charts for weekly NADEX expiry, or what time frame chart should I use for 20 minute, or what is the right expiry if I'm using the 5 minute charts. Basically, my answer is this, there are two methods of choosing the right expiry/chart time frame with trading NADEX.

    The first is to choose a certain expiry that you always trade, and then adjust your charts so that you have a proper view. It makes no sense to use 2 minute charts for end of week, same as it doesn't make any sense to use daily charts to trade 5 minutes. The easiest way I think, is to pull up the chart of your asset/expiry. This chart will include all the strikes available for the expiry, you can adjust your time frame until the strikes are clearly visible, not all smashed together or with some hidden. That should be the right, or right enough, time-frame for trading that expiry.

    The second method would be to choose what time frame you want to trade, as in which time frame of chart you like to use best, and then use an expiry to match the signals you are getting. For example, if I'm using the daily charts for signals I may use end of day, mid-week or end of week, depending on the signal and the day of the week that it is. If I were to use say the one hour charts I might do end of the week or mid-week, but also shorter expiry such as end of day, or one of the intraday expiries. If I were to use the 5 or 10 minute charts I would definatly not use the end of week, maybe the end of day, but probably mostly the intraday expiries, and maybe the 20 minutes.

  2. #2
    Junior Member DrSpec's Avatar
    I've got a probably silly question about this, but when you refer to, say, a 20 minute trade, does that mean you are looking for trades that will expire in 20 min, or are you looking to get in and out in a 20 minute window of some longer period trade?

    Question relates to both the above when choosing timeframes and all the other threads about "5 minute trades" and so forth.

  3. #3
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by DrSpec View Post
    I've got a probably silly question about this, but when you refer to, say, a 20 minute trade, does that mean you are looking for trades that will expire in 20 min, or are you looking to get in and out in a 20 minute window of some longer period trade?

    Question relates to both the above when choosing timeframes and all the other threads about "5 minute trades" and so forth.
    This is a fantastic question! The answer is yes, it applies to both. Choosing the right expiry, time frame of chart, strike price etc is a tricky process. Sometimes a signal looks good on a say a 2 minute chart of prices but the strikes will be different for a 5 minute, 20 minute, mid-morning, mid-day, mid-afternoon, end of day and end of week expiry. This means you can take at least 2 approaches, either use the 20 minute charts and wait for signals there, or find the expiry with strikes that look good relative to your chart/time frame and target trades with the 20 minute time horizon. Does this make sense?

  4. Thanks DrSpec thanked this post

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