3 Binary Options Trading Strategies For Beginners

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Here are 3 different strategies that I use, choose one based on your risk appetite. This strategy is for those who are new to this game and want to build up their capital slow and steady. The point of this strategy is to minimize risk and wait for the perfect setup on the chart. Draw binary option trading strategies and secrets fibo from point 1 to point binary option trading strategies and secrets for a down trend, and vice versa for an uptrend. Your target is In order for the signal to be fully valid, there has to be a retracement to between 50 — Higher the retracement goes, stronger the signal.

In the example above, the retracement happens next to the number 2 in the up left corner. And money management suggestion for this strategy is to take 2 equal bids per day for 20 days. Binary option trading strategies and secrets you lose, start with the last set of bids:. You should reach around 5k in profits within 20 days, and next month just start over or carry on from where you left.

The semi conservative strategy involves trades per day. The rules are the same as for the conservative strategy, only with one exception: We take the trade at Fibonacci projection level as well as Now, for level trades, I would advise not to binary option trading strategies and secrets the trade with more than 6 minutes to the expiry. Use the same money management as with binary option trading strategies and secrets strategy, but your earnings will increase faster.

Now, the below strategy is a very aggressive one that defines the means of sane trading. This strategy represents the use of price cycles and Fibonacci sequence in fast trading. Trades are not binary option trading strategies and secrets taken at levels and And Fibonacci levels are drawn for every binary option trading strategies and secrets. This strategy also exploit the full potential of value charts. Above you learnt what you are hunting, where to find your prey, and how to bag some prey steady and safe.

Now, we will go after the BIG 5. Now, change your zigzag indicator parameters to 2,1,1. How many short-term price cycles do you see now? Each of these cycles is a Fibonacci sequence with a high-low-retracement-projection-reverse. Look at the chart below:. Within each price cycle between 3 points there are on average 3 ITM trade setups during normal volatility trading conditions. This strategy will produce around setups per currency pair per day, so use it wisely, and be very sure to learn it by heart before you jump in full steam.

The 3 strategies explained here work for all currency pairs, commodities, stocks and indices. However, even with the conservative strategy, a trader can produce excellent results if they trade assets, and take 2 high probability trades per asset per day.

Click here to read my next and last post in this mini series. Conservative Long-term Strategy This strategy is for those who are new to this game and want to build up their capital slow and steady.

They key here is to be patient until all 3 factors line up. The entry rule is: And your target is trades per day. If you lose, start with the last set of bids: The rules for entry are the same as with the conservative strategy: And remember, You have to stick with the entry rules. Aggressive Strategy Look at the chart below, how many price cycles do you see? Look at the chart below: Now it binary option trading strategies and secrets complicated and wonderful: The Fibonacci is drawn between points 1 and 2 in light blue and marked on value charts the last high and low, 1 and 2 respectively.

Now we have the levels and wait for the retracement which can be a wick, or a full candle. Above the retracement area is the white box marked by 3, and the green candle underneath touches that box.

The setup is ready when the retracement candle is followed by a red candle in the direction of the trend. This is marked by the light blue rectangle. So this is our first breakout candle of this specific sequence. This is marked by 3 PUT on the chart above. We enter PUT 10 seconds before the close of this candle because it will be followed by a bearish candle, or bearish candles which will reach level Fibonacci level This trade is represented on the chart by 1 PUT.

The last bearish candle hits Fibonacci level As usual leave comment below if you have any questions. Click here to read my next and last post in this mini series Further reading: Trading Binaries with the Fibonacci Tool.

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Binary options are unique options products that allow investors an opportunity to earn returns based on movements in the market that can be considered short term in nature. Most trading strategies are designed to capture returns based on a directional moves in the investors favor. The return is calculated based on the degree of that movement. Most analysts that back-test trading strategies are looking for specific criteria that allow them to feel confident in the results, as well as, show robust historical profits.

In general, conventional analysts are looking for a strategies in which there are more winners than losers, but more importantly a solid profit factor. The profit factor examines the win to loss ratio, and combines this with the amount won in each trade compared to what is lost.

This calculation creates a numerator where the average of the number of wins in the time series, multiplied by the average amount won, and the denominator is the average of the number of losses multiplied by the average loss. A profit factor of 1 means that for every dollar speculated, an investor should expect a dollar returned.

Since the payout profile of binary options is the same despite the amount won or lost on a trade, only the winning or losing percentage is relevant.

The first strategy is a breakout systematic strategy that shows historical results where there are trades. This strategy has 65 winners and 35 losing trades. In the above two strategies, conventional analysis would conclude that the first is worthless while the second was concrete. On the other hand, using the first strategy for binary options trading is likely to produce a significant winning strategy as the profits are fixed, and the amount won on a trade is generally close to or equal to the amount lost.

Traders who want to design a system to trade binary options, should consider back testing systems that are geared to this type of performance. Many of the current binary options brokers have a payout profile that is close to 83 cents for every dollar used to speculate on a trade.

Binary options trading is designed to use leverage and a payout style where the number of winning trades outnumbers the number of losing trades. This works very well with breakout strategies, and sharp mean reverting strategies, but might be less effected with long term trend following strategies. The unique payout of binary options makes conventional strategies less effective, and creates the need to find strategies that fit the payout profile produce in the binary options market.

Brokers Guide Login Open Account. Forgot password Remember me. The Secret to Analyzing Binary Options Strategies Binary options are unique options products that allow investors an opportunity to earn returns based on movements in the market that can be considered short term in nature. Binary Options Demo Brokers.