Fun fact about Nadex

So, I was under the incorrect belief that we were able to set up a “stop loss” on my current trading strategy. I don’t know how I missed it in my Demo testing, or why I thought that it was working, but, none the less I was wrong. My belief was say you take an order for EUR/USD > 1234.00 and bought in at 40$/ticket Sell. To prevent greater losses at a future date, I thought you could open a reverse order at a MktPrice of 60, and set your loss to execute and liquidate at $20. Pretty reasonable thought process in case trends go to heck. Turns out they fill you immediately when you place a reversed direction order instead of waiting. So instead of waiting to see if the trends actually do fall the wrong way, I instantly created a 20$ loss when I was actually at a 8$ loss at the time.

This isn’t a complaint against Nadex or anything, I blame that largely on my fault for not carefully making sure that would happen in Demo. After talking with the Nadex support staff, I totally understand why and do appreciate the instant execution when you wish to cut your losses right NOW, just unfortunate they don’t have a system in place to cut out later. Their mentality is what if the market only dropped because of a quick spike, you could lose out on the opportunity for the rebound if there was, say, a day or even a few hours remaining until expiry.

So just a fair-warning to anyone that’s using or planning on using Nadex. Make sure you fully test your strategy in Demo to understand how their controls may differ. Yesterday and that trade add up to my 4OTM trades in a row after a nice week of almost all ITMs. Very happy with this exchange and hope others are too.

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