Nadex Trade of The Day- Trading The Sausage and Sushi Strategy

TradingPub Admin | March 26, 2015

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If your work schedule doesn't permit you to trade during normal working hours, here's a trading strategy you can use in the comfort of your home around the dinner hour. For the 2 past months, I've been testing an evening trade with the EUR/JPY that has been remarkably consistent. This strategy for trading Nadex Binary Options came from Krystal Comber, CEO and founder of

The working name used for the strategy was the "8pm-11pm EST EUR/JPY Asian Session" strategy. But that's a mouthful to write and it's boring. After testing this strategy with a group of fellow Nadex traders, we decided to rename it to the "Sausage & Sushi" trade.

Almost every night, the EUR/JPY behaves quite predictably, and if you can draw support and resistance lines,this strategy can greatly enhance your trading consistency.

The rules for trading the "Sausage & Sushi" Strategy are quite simple:

  1. Log on to Nadex, and select the EUR/JPY currency pair with the "Daily 11pm" expiry.
  2. At 8:00pm EST, draw horizontal lines at the highest price (resistance) and the lowest price (support) between 6-pm-8pm on the 15-minute chart for the EUR/JPY. Draw your support and resistance lines on regular candle bodies, and not the wicks. Use regular candlesticks, and not Heiken-Ashi candlesticks.
  3. Be aware of any economic news occurring on the EUR
    or JPY from 6pm – 11pm EST. Refer to or Forex Factory to view economic news.
  4. For a SELL – After 8pm, if a candlestick closes below the 6pm-8pm support line, then  SELL on the closest strike price at or above the support line. You can place a market order if you want your order filled immediately, or you can place a working/limit order if you want to adjust your risk/reward.
  5. For a BUY – After 8pm EST, if a candlestick closes above the 6pm-8pm resistance line, then BUY at the closest strike price available at or below the resistance line. You can place a market order if you want your order filled immediately, or you can place a working/limit order if you want to adjust your risk/reward.
  6. That’s it!  Price is normally tested heavily
    between 9pm – 10pm EST –You may wish to walk away during this point and come back
    around 10pm -10:15pm EST.
  7. Always pay attention to the trend direction and news.
    If the market is sideways and staying within the high and low range you may want to avoid taking the trade.  Also if the spread between 6-8pm support and resistance is very skinny, it's best to stay away from this trade.This is why I like to watch the Keltner Channels and
    Fisher Transform on ThinkorSwim (TOS) or the EMAs and Ichimoku cloud on the Nadex charts.

Last night's "Sausage & Sushi" trade (March 25, 2015) presented a good OTM opportunity:

6:00pm - 8:00pm EST: The EUR/JPY established RESISTANCE at 131.092 and SUPPORT at 130.993. Support and resistance lines for the 6-8pm time period were plotted on the 15-minute chart at these levels.

8:00pm - 11pm EST: Within the first 15-minutes after 8pm, the EUR/JPY broke through the support line, gapping hard below the T-Line (8EMA). Using the rules of this strategy, this triggered a pending/working SELL order from the nearest NADEX strike price above the support line (131.00).

There were 2 SELL strike prices to consider:

  1. SELL at 131.20: This was the safest strike price, but it was very deep into the money. If a market order was placed, it would have required risking $92.50 for a $7.50 reward. I placed a working/pending order risking $70 to make $30. For this order to fill, it would require the market to move upward significantly for a fill. With almost 3 hours left in the trade, anything is possible.
  2. SELL at 131.00: This order was much riskier, since the support line was barely below this strike price. The market price for a SELL order was $45. meaning I was risking $55 to make $45. While those are better risk/reward odds, the market was straddling that line, and it felt a little too risky.

Sometimes you just have to trust the strategy. After 2 months of trading the strategy, the rules hold up with great frequency. The decision was made to SELL at 131.00, but a working/pending order was placed, risking $40 to make $60.
Trade Details:

Contract: EUR/JPY >131.00 (11PM)

Expiration: Wed Mar 25 23:00:00 EST 2015

Direction: SELL

Quantity: 1

Price: $60.00

1 contract was sold, with a maximum risk of $40 and a maximum reward of $60. Now it was time to be patient and let the market grind upward to fill the order.

The order filled at 8:42 pm when the market moved up sharply. From that point forward, the SELL order was never threatened, except for a brief period at 10:10pm. The market moved back down and traded sideways before it expired and settled safely in the money at 11pm.

This trade yielded a gross profit of $60 per contract, less $1.80 in exchange fees for a net profit of $58.20. The pending order at 131.20 never filled.

In backtesting, demo trading and now 2 months of live trades, I am learning to trust this strategy because it has been remarkably consistent. A sincere thanks to Krystal Comber for sharing this strategy. If you can draw support and resistance lines, you can trade the EUR/JPY "Sausage & Sushi" trade tonight!
About Krystal Comber:

Krystal is the founder of  SlickTrade provides live trading rooms, signals and setups for Nadex, IG Group and Forex traders. Krystal provides the following services:

  • Video tutorials for trading with Nadex
  • Winning strategies with detailed instructions
  • ThinkorSwim (TOS) workspace setups and indicators
  • Live trade signals
  • A private Facebook group and chat group
  • A personalized online trading journal that helps you track your trading activity
  • Live support


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Watch Krystal Comber Explain the "Sausage & Sushi" Trade:


Click on 5-Minute Nadex Chart to Enlarge