The Reward to Risk Ratio Math is Another Edge to the PERPETUALPOPS NADEX Trading Signals Method.
Risk to Reward Consideration when trading the NADEX Day Spread.
There are two different types of days spreads essentially. You have the small one and then you have the big one . Then you have multiple ranges for the small one. And then you have 1 range for the big one.
With the small range NADEX daily spread you usually have one that is close by current price giving you an entry right at the edge of that spread. This gives us a good reward to risk ratio.
That said, when we are slightly out of the money or at the edge of that spread there’s usually some premium involved that we have to overcome by expiration. Now you don’t have to overcome that premium by expiration if price goes in your favor strongly and far surpasses the spread range, you can just take your profits early. The premium will vary on what instrument you are trading. Some have less premium than others, which is good.
When you trade the big spread, if you were going to enter right around where it’s opening at around 6pm, then you’re going to probably be in the middle of that spread and have roughly a 1:1 reward to risk ration. You can enter that spread later when price is closer to one edge versus the other thereby giving you a better reward to risk ratio as per NADEX output calculations of reward-to-risk ratio. So with PERPETUALPOPS, even thought the signal is scheduled to come out a little after 6pm, we can wait up to midnight to put on the trade, because sometimes we get a better entry for the direction we are trading and so thereby, on the big spread, you could have a better reward to risk ratio.
Additionally, if you know what you are doing, you can use the PERPETUALPOPS Trading signal service as a base and take profits early. Or you can trade bounces the other way at significant support and resistance points for more potential profits.
And speaking of reward to risk ratios, we can also target a slightly out of the money day binary option on NADEX with PERPETUALPOPS NADEX Day Spread signals service. Why? Because the Russell 2000 can put in good momentum moves the next day, easily surpassing an OTM strike in our favor.
We also have a Forex version of PERPETUALPOPS here called PERPETUALPOPS-FX
Now when we are entering on close like we do with the PERPETUALPOPS NADEX signal service which is not on close but on open when NADEX opens back up, what we are doing is taking a high probability bet based on our trading systems for the next days direction. So then, what we need to do is that we have to have a good reward to risk ratio already preset chosen for our position especially since we are going for expiration the next day.
But keep in mind that you can take profits at any time if you happen to be logged in. If you have the near full profits and you are watching the markets, then why not take them because sometimes the markets bounce the other way.
Yet, this PERPETUALPOPS system that we are using on this trading signals service is designed so you do not have to manage your trade throughout the day. Seriously.
This system is designed for minimal effort on purpose. We made this system for ourselves in order to generate cash flow while working on a bunch of other things. And we just decided to roll it out as a trading signal service in hopes to help a bunch of people potentially generate some nice cash flow. So if you want to take advantage of this opportunity then:
Join the PERPETUALPOPS NADEX Signals Educational Series from Best Trading Signals.net
This email series of messages will be focused on education pertaining the PERPETUALPOPS NADEX Trading Signal Service and concepts, tips, understanding, related to optimizing success in trading the NADEX Day Spreads.