Forex trade results using binary options overnight resulted in a total of 23 trades with 19 winning trades and 4 losing trades.
Forex Trade Results – Remember the Rules
The rules for entering the binary options are quite simple:
- Signal gives you a heads up that the trade may come in.
- Wait for price to approach the signal price.
- When price reaches the signal price, risk should be between $45 and $55.
The check marks on the charts below identify the winning trades for the 45-minute minimum expiration. The red “X” identify the losing trades. The chart shows all ten forex symbols that the binary options signals follow so you will need to expand by clicking on the chart.
The exit is dependent on the trader’s preference. Some exit early (my preferred method), while others allow it to expire. Some brokers only allow expiration but Nadex Binary Options allow for early exit or expiration. Using the results from above, 83% of the trades were winning trades with 17% losing.
Also, remember with binary options, price movement is not a requirement to make money. As long as the indicative price stays either above or below the strike (depending on whether you are long or short), then the binary option makes money. The example below shows that Gold moved very little yet profit was achieved.
The binary options signal for Gold on June 20, 2016 at 12:13 PM New York time was:
- Point A indicates the market
- Point B gives you the price should be (find closest strike price)
- Point C gives you a minimum expiration
Since price was 2 points away from the signal, I began checking out the binary options. The daily binary offered a 1290 strike price (3 ticks from the signal). Then I simply wait for price to approach 1290.
My binary option for Gold resulted in a risk of $56.75 (I was a few ticks off the 1290 area):
I exited Gold when premium reached the $15.75 price area:
In other words, Gold barely moved yet both the Gamma (how fast the premium was changing) and Theta (time decay) were working for me and I simply took advantage of it.