The binary option signals results for this week and the last nine weeks are below. Although the rules below use the ATM strike, the trader has the option of using either the ATM or OTM strike, depending on their risk appetite.
Binary Option Signals Results – June 22, 2018
The week ending June 22, 2018, shows there were a total of 66 signals issued. Out of the 66 signals, 43 were profitable and 23 were losers, producing a 65.15% winning percentage. Also remember that the signals run from 7pm EDT to 3pm EDT on 8 different currencies that are offered via Nadex. The rules for measuring whether a trade was marked as a winner or lower are also posted below.
The binary option signals results do use the following rules for determining whether a trade is profitable or negative:
- Always use a two-hour binary option that has a minimum of six 15-minute bars remaining (an hour and a half), although some of the signals will only have five bars, they are still measured in the results.
- When the signal is sent, choose the ATM binary and set a limit order of $45 for longs or $55 for shorts.
- On the EURUSD, USDJPY, AUDUSD, GBPUSD, and USDCHF, if price moves two strikes in your favor, then consider taking profits (strategy takes profit).
- On the EURGBP, GBPJPY, and EURJPY, if price moves one strike in your favor, then consider taking profits (strategy takes profit).
Binary Option Signals Results – Last 9 Weeks
The results for the last nine weeks are also posted below. There have been a total of 571 trades — 381 winning trades and 190 losing trades, producing an overall profitable percentage of 67%.
During the last two weeks, I have received two emails regarding the signal service and wanted to share both — as they show the sentiment from the traders using the signals.
Trader #1: I’m sure I am doing something wrong and maybe I assumed for the amount of your service the signals would not require the amount of trade management needed but I cannot afford the service after this month’s subscription. I am down too much money to continue. (Received on June 18, 2018).
Trader #2: Your high quality, consistent signals specific to the Forex market I like to trade (around the clock) is making me a better, more profitable trader. I’ve read your Trading Nadex Binary Options Using Currencies, consistently watch your videos and learn something from each and every one of them. Thank you for a great quality signal service. My Traders Help Desk journey is just starting and appreciate finding a mentor to grow with towards my dream of “Full Time Trader”. I’m an OTA (online trading academy) graduate, been trading 7 years and now putting it all together trading binary options while learning from a professional trader. (Received June 14, 2018).
Two different traders with two very different results. One quits because he is in a losing and didn’t realize the “amount of trade management needed”, yet the other trader is willing to continue because “they are making him a more profitable trader” — remember each one receives exactly the same signals being sent to both.
The rules that are used to measure the success or failure of the signals are very specific (outlined above) and require no analysis but it does require that you monitor the trade (ie if the trade moves 8 pips (or 10 pips on the EURJPY, AUDJPY, GBPJPY, GBPUSD), profit is taken. Otherwise, the trade is counted as a full loss. The signals also trade through market reports (although I forewarn everyone via twitter and email). Additionally, using a 5-minute chart to filter negative trades can be used but does require analysis using either the TradersHelpDesk indicators or the standard Stochastics in Nadex.
While not every trade will expire In-the-Money, we know from prior results that at least 60% do. So let’s see what the equity curve could potentially look like using these basic rules with the 65% profitable trade percentage from this week:
- ATM $45 of risk entry
- Capturing $27 in profit on 40% of profitable trades
- Capturing $55 in profit on remaining 25% of profitable trades
- Allowing 36.83% of the trades to lose the full risk ($45)
- Total trades is 600 with 221 losing, 240 capturing $27 in profit, and 139 trades capturing the $55 in profit
- $2 exchange fee
The red circle highlights the initial drawdown ($580) and then the equity graph recovers and proceeds to actually start making money. It also highlights trading in a nutshell. Although it is easy to say “losing is part of trading” the graph above highlights the concept, which is why I use it. Initially, the trader lost $580. He has a choice — stop trading or continue. If he stops, then there is no opportunity to recover or improve. If he continues through the drawdown, then at the end of the 600 trades, he potentially has recovered the drawdown and has a profit of $2,789 (average profit per trade $4.74).
Additionally, using money management guidelines, the trader should not risk more than 5% of his account. While generally all the signals do not kick off at the same time, on Friday there were five signals issues with an hour of each other. Risking $45 per trade, that adds up to a total risk of $225 on the five trades. Using money management that means, if taking all five trade signals, the trader would need at least a $5,000 account (trading one contract each).
If the trader opts not to trade all five signals at the same time, then they may chosen to enter the one trade that loses while the other four win — yes that happens. Or the trader chooses only to trade the GBPUSD signals or only the USDJPY signals. Of course, if those currencies are not moving or are in congestion, then the trader could have a really bad week.
While experienced traders realize that the binary option signals are designed to make trading easier, your job still exists — implementing money management rules, monitoring the trade, and above all taking profits that the markets are offering. Some weeks are hard because the market isn’t offering much, some are easy because the market is offering full payout but your job as a trader remains the same.
If you are thinking about signing up for the signals, then think about this. The first month, maybe two or three, you should be in demo mode to make sure you understand the signals. That’s three months at $199 per month or about $600. Second, if you don’t understand the signals, then email me and I can answer your questions regarding the signal. Three, if you are just looking to “try out” the signals to see how much you can make, then save yourself some money and don’t sign-up. While the signals have an excellent profitable percentage, following the rules will be hard and you are likely to have a drawdown at the beginning.
Trading is not like having a part-time job where you put in X amount of hours and receive a paycheck. It more like being self-employed where you don’t know if you are going to have a paycheck at the end of the week, so you manage your money using sound money management guidelines and you take the profit that is on the table when possible.
You can sign-up for the binary signals for $199 per month. You do need to have a basic understanding of the binary signals and preferably use the Nadex Binary Options as they are designed to work with the Nadex model. Additionally, while having the indicators is not a requirement, you can filter the signals further by having the indicators and even utilize the Out of the Money binaries, which lowers your risk even further. Plus, if you purchase the Diamond Package, you receive ten hours of personal mentoring with Gail.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.