Three trades on Forex Market using binary options results in profits, even after losing one trade because I entered late. The trades were on the AUDUSD, EURUSD, and EURJPY forex markets.
3 Trades on Forex Market Using Binary Options
The first trade was on the AUDUSD forex market. Price had tested both the ATR and lower range lines. However, I was one bar late on entering. The binary option trade had a risk of $25.75 per contract. Although price went slightly in my favor, it then reversed and expired under the strike.
Then the EURUSD binary option setup. Price was at the ATR and potential hidden divergence was forming. This trade had a risk of $30.25. I immediately set a profit target of $15 (always go lower on targets when shorting a binary option). A few minutes prior to expiration my profit target was achieved resulting in a profit of $54.25 per contract.
The EURJPY had the same formation so a short was also entered on it with a risk of $24 per contract. Again, a profit target was set for $15. Again the profit target was achieved resulting in a profit of $61 per contract.
The results for the three trades on Forex Market, per contract, on the forex market are listed below. Since we were using low risk, even a loss doesn’t eat away our profits.
- AUDUSD, loss of ($25.75)
- EURUSD, profit of $54.25
- EURJPY, profit of $61
Net Profit: $83.50 (based on one contract each after exchange fees)
The trades on Forex Market were very specific:
- Price was at an ATR and entry was in the direction of the range lines (there are exceptions to this rule)
- There was either potential divergence on the Stochastics (following price bar action to identify it with the Stochastics) or the Stochastics was in harmony with price
- Risk was low enough that I could anticipate at least a 1:2 risk to reward ratio
Trading the forex market using binary options cannot be easier than following the TradersHelpDesk indicators!