Enter the "Iron Butterfly" Strategy - Nadex *Read the Description*

In this video I cover one of my favorite strategies for Nadex binary options strategies, the "Iron Butterfly". This is a slightly edited version of the video originally published on January 10, 2015. Enjoy! Please Note: In the video I show some images and make reference to Apex Deviation levels, the Apex Stop Trigger and Apex Binary Spread Scanner. It is important to note and understand that these tools are the creations of Darrell Martin and APEX Investing institute and I recommend you go straight to the source at www.apexinvesting.com to learn how to use the tools. As an active trader I use these tools every day and can assist in guidance of use with the tools but please know that you need to go to Apexinvesting.com to get them and fully learn how to implement and use them. Apex investing also has a vibrant trading community and excellent forum with over 500 hours of free education. The majority of what I have learned comes from Apex Investing and Darrell Martin. Its important to acknowledge our influences and friends! Please know this video is all suggestive and for educational/blog purposes only. Trading futures and options involves risk and you can lose money. All trading decisions you make are yours, and yours alone. Please seek outside council on all financial decisions. Thank you.

Comments

1. So basically I could do these all night long on the 2 hr trades when the markets are quiet and only have to hit a few to make nice$$$ because of the built in risk management. I could be studying most of the time and just jump on every 2 hrs and take like 10 mins to set up the trade correctly.
2. seems like this strategy always works at night crazy. 11pm aud/USD
   
   i only hold until 20 minutes till ex.
   
   I'm on the west coast.
3. Chris: Do u use this IB strategy on other time periods (besides lunch) & other products (besides indicies)? If so does this strategy work equally well in other flat periods of the day and on currencies & oil or gold? Also, the Apex stop trigger u mentioned, do I have to be a PAID subscriber to access that tool? Thanks
4. Excellent presentation. I likes how u incorporates Apex material with BTG's material. Job well done!
5. Thanks a lot for this clearly explained strategy!
6. Good stuff! Nice presentation. 😀
   
   I would do these all the time, but stopped because it seemed like there was less premium available in the binary options. Do you still do these? I may revisit this strategy.
   
   Again, nicely done!
7. Great video, thank you. I have a couple of questions. I will try this strategy in demo account. My first questions is regarding the entry point and if it is used to determine if I won or lost. For example, current price is 2046. I bought >2042 @ 19 and sold >2051 @ 77 and the expiration is 10 hours down the road. Those two contracts are in-the-money, I'm waiting for time-value to increase to take profit. Lets say, at the time of the expiration, the price is @ 2043. Would I win on both sides? regardless of my entry price as long as both buy and sold statements are true at expiry. Also, when I am selling on Nadex, am I buying a 'put' contract? Thanks you and I'm pretty sure I've watched some of you videos on apex.
8. Okay, I was thinking about this strategy in detail today at work. I was trying to figure out the possible ways to lose money. I came up with two:  1. If you're trading during a time of very low volume, it's possible your stop won't fill & you could lose the full amount on one side. This might happen if you're trading multiple contracts. One pair I looked at had a total volume of just over 800 in a one-hour period (USD/JPY) at 1am to 2am EST. Of course if I'm watching it at the time, I could do a market order & see if that gets me out........    2. What if the options were about to expire? Nadex takes the deep "in the money" trades away as it gets close to expiry. Does the strike close to the market price close early? I'm thinking it's possible for all trading to be shut down in the last minute or two, and THEN the market pops outside of one of my strikes. This is probably another rare occasion. I can't wait to try this strategy. This coming week, I'll be trading it after midnight & after 12 noon EST. I'm going to study the pairs & different time frames over the weekend to find the best pairs & times to trade. I think when I get up to 5+ contracts, all I need is one successful trade per day to earn a great living. I'll get my prices just right in order to break even or make a gain. If needed, I could tweak the prices to 26/74, 27/73, or somewhere in between those numbers.
9. BTW, I want to thank you for this great video & visuals. I like the idea of having protective stops to minimize my risk. If I can win both sides or lose virtually nothing, I'd take those trades every day! The only problem I can see is if BOTH stops are hit, but I'd hopefully be trading at times when the market isn't very active.
10. When your stop is hit, don't you have to have someone on the other side of the trade for the order to be filled?
11. Very exciting stuff, thank you so much for the clear and simple explanations.