Binary Options Educational Examples

[emiuqam]

This thread will be for posting educational/informational examples of trading binary options.

[emullujogic]

To start off with here is an example of a flat choppy market from which I have been avoiding for the most part last week. Seems this CHINA issue has spooked alot of institutional money and kept it on the sidelines. When faced with such I lower my leverage and trade less. I was even in the red last week not by much still could not find the edge on trades so mostly just stayed out. Many charts appear of similar fashion last week...

[enventanype]

See the thing with China i no this does not happen every day but when it does , im guessing it has a knock on affect with all sorts of trading ..And just a case of avoiding it while it calms down .

[Esielmoca]

Right I avoided it but at the same time tried to figure out where the money was statistically. I ended up finding if I traded 1-5 min trades using CYLON with a 2 step martingale and "High Roller" money management I could make up the slack I was feeling since my ALGOs were all but useless under those conditions. My stats for 1 day of trading were 17-6 about 73% with an around 30% growth. Now the "High Roller" MM uses 5-10% a trade in a 2 step martingale and risk 1 to gain 2-5x weekly with very short but very frequent trades. On average statistically I should win 2-3 out of 4 weeks in these ranges. So lets say you have 10k and you use 1k of that week one you do great and make 2k on top of it week 2 you do even better and make 3x or 3k on that and week 3 you do horrible and you lose 1K and the 4th week you make a bit over 1k. +2k +3k -1k +1k at the end of the month you are up +5k on your 10k so 50% using the 10% trading capital of which you keep 90% in the bank right... See the thinking involved here is about risk vs reward more then anything else. You always plan to limit your downside before you ever start. At the end of the month you then start over with 15k so now using 10% of that is 1,500 5/10% a trade rinse repeat but maybe This month your numbers are not as good and you lose -1k first week make +2k next week +1k week after that and then -1k the last week for +1k overall. Then start again next month $16,000.00 x 10% = trading capital $1,600 ect ect ect...