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  #11  
Old 04-17-2015, 12:31 PM
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Does NADEX just exist for speculators or is it used for institutional investors to hedge? Or is it just small potatoes enough with not enough liquidity for the automated traders to come in and wipe out your edge?
it is designed for the retail little guy trader. nothing can be automated and there isn't nearly enough liquidity to put any kind of real money (6 figures+) into trades. I know many people that trade on NADEX and combined they only do a fraction of the volume I do on average. The vast majority that trade on NADEX lose money.

Basically NADEX collects the commission, 90 cents per contract up to maximum of 9 bucks, then the market maker collects the spread and takes the money retail guys lose. It is really not in their interest to attract institutional smart money guys as traders but as their trading volume grows (and it is growing rapidly), I can see getting some big players in as market makers. Depending on how they program their algorithm to make the market, it may end up diminishing my edge even if spreads were to decrease. But this could be years down the line or might never happen, who knows really.

The market makers in there right now certainly have exploitable edges when their algorithm is mis-pricing the options. And since most people either haven't figured this out or don't have the discipline to stick to a strategy, there's still a lot of money out there being lost every day to keep everyone happy.
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Old 04-17-2015, 04:14 PM
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1. on NADEX from July 2013 to year end 2013 I made $43,300, in 2014 I made $1,400, and YTD 2015 I've made $48,500. In my stock/futures account, probably I'm up $13,500 YTD 2015. 2013 and 2014 didn't make much or lose much in that account so consider it a net wash.

I think its awesome when people go out on a limb and try something new... but why quit a lucrative career for really small income?

Just curious
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  #13  
Old 04-17-2015, 04:23 PM
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I think its awesome when people go out on a limb and try something new... but why quit a lucrative career for really small income?

Just curious
because I hated going to work every day and I love trading. But you are right that I won't continue like this indefinitely. It'll either scale up or it won't. If not, do what I have to do.
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Old 05-05-2015, 03:39 PM
MathGeek92 MathGeek92 is offline
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I see. I basically do both.

I trade usually once a week. make enough on options trades (posted elsewhere) that I make 25 bps to 50 bps per week.

While I may be under water on a MTM basis on some of my trades (because I get assigned), I make enough income on my cash that I don't have to work.

However, i enjoy expensive red wines, so basically I blow lots of money on fine drink. that makes me work so that I can pay the bills AND drink what I want.

Keep us posted on your success. i may pick your brain fromtime to time to learn more.

Best of luck!
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  #15  
Old 10-03-2015, 07:09 PM
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up over 150k so far this year and 100k of that was just since June 1st. I limit my trading to 8-10am and 3-7pm, rest of the day I usually go to the beach or play poker since there's a nice poker room about 15 minutes from me. I've found that less trading has helped my results significantly. 3 years ago when I graduated college I was working for the state government making 32k/year - I made that in September alone. Funny how things work sometimes.
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Old 05-08-2016, 05:12 PM
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Bumping this I have been looking to possibly start trading on these instruments this year.
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Old 05-09-2016, 09:07 AM
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Bumping this I have been looking to possibly start trading on these instruments this year.
you have an idea of what strategy you're going to use?
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  #18  
Old 05-09-2016, 10:11 AM
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Colymbosathon ecplecticos Colymbosathon ecplecticos is offline
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you have an idea of what strategy you're going to use?
He's no doubt planning to buy underpriced ones and sell overpriced ones. Of course, the person on the other side of the trade (who obviously is less knowledgeable) is doing the same thing.
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  #19  
Old 05-09-2016, 10:37 AM
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He's no doubt planning to buy underpriced ones and sell overpriced ones. Of course, the person on the other side of the trade (who obviously is less knowledgeable) is doing the same thing.
there's no person on the other side of the trade. it's an algo that determines pricing. you're just trading against a machine essentially.
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  #20  
Old 06-06-2016, 04:40 PM
2A.or.not.2A 2A.or.not.2A is offline
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up over 150k so far this year and 100k of that was just since June 1st. I limit my trading to 8-10am and 3-7pm, rest of the day I usually go to the beach or play poker since there's a nice poker room about 15 minutes from me.
wow, talk about a dream life.
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