When you start mastering binary options trading, you unwittingly turn to more experienced traders for help, read hundreds of articles, watch video clips that show the process of making trades. In short, you are doing your best to understand which strategy to follow in the trading process. To a large extent, the choice of tactics depends on the trader’s mood, the availability of a deposit, a sense of excitement or lack thereof. Today you can use a strategy Darvas BOX, tomorrow you will like something else.
It is clear that during the preparation for real trading, the demo account has seen a lot of different trading tactics and the deposit has repeatedly “subsided”. However, there have been some takeoffs, too. We have to test different tactics – from moderate to aggressive. And among all of them, I would like to highlight one that, although it differs from other tactics in terms of risk, often brings quite significant profit. We are talking about the strategy of the binary options trader – Martingale.
Probably, those traders, who have ever traded in the Forex market, have repeatedly encountered such a strategy and found it, though tempting, but quite risky. By the way, many brokers are not very happy with traders who use this method in their trading and even prohibit its use. With binary options brokers, everything is much easier, here you can and should use Martingale. The essence of the strategy of a successful binary options trader, Martingale, is that each subsequent trade must be larger than the previous one in money equivalent. Thus, it is assumed that each new deal will overlap the possible losses of the previous orders.
It is worth noting right away that there are quite a few options for Martingale on binary options and each trader adjusts this method personally for himself, his habits, deposit size, market situation, etc. We will announce the details of the method that has been tested over time and is successfully used by many traders. So, first of all, we define the trading instrument. “Martin”, as a rule, is used for currency pairs and preferably those with good volatility. Accordingly, the yield on the selected pair should be the maximum: 80%-90%.
Now, as for the value of the option. Each subsequent trade in the “order” should be greater than the previous one. The coefficient 2.5 is used for this purpose, i.e. the value of the current option is multiplied by this indicator. This is how the value of the next option is obtained. For example, the first option you buy for $1, but it closes with a loss. The next trade will be of larger volume: 1*2.5 = $2.5. You can round it up to $3 for convenience of calculation. The next trade will be calculated in the same way: 3*2,5 = 7,5$, here we round it too. The main thing is to understand the principle. By the way, you can round it up as well as down.
Tips for traders
- The main points of a binary options trader’s strategy, which should be remembered:
- Trading on volatile pairs with maximum returns;
- Trading during the daytime when the volatility of assets is the highest;
- When calculating the value of the subsequent trade, apply the coefficient of 2.5;
- Beginners can use “five-minute” (5-minute timeframe, option expiry time is similar), experienced traders can work on a 1-minute chart with a contract term of 60 seconds.
- As a rule, users of this strategy conclude no more than six deals in a row, because there may be a long trend and no one gives a guarantee that the market will be on your side in 100% cases and all deals will bring profit.
Use reliable brokers, such as FINMAXBO. Gambling is better to resist and clearly meet all the conditions of the strategy of an experienced binary options trader, then the trade will delight you with positive results.