Learning how to trade forex using risk to reward as an edge is the topic of Gail’s latest video.  Using the forex binary options signals (based on Nadex binary options model), Gail shows how the signals did for the month of November on both a weekly and overall basis.

How to Trade Forex Using Risk to Reward as Edge

The results used in the video are based on the rule set for trading the forex binary options, which are:

  • 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, AUDJPY, and USDCHF, if price moves two strikes in your favor, then consider taking profits (strategy takes profit).
  • On the GBPUSD, GBPJPY, and EURJPY,  if price moves one strike in your favor, then consider taking profits (strategy takes profit).

The weekly results for the month of November were:

  • November 2, 2018 – 73.08% profitable
  • November 9, 2018 – 65.91% profitable
  • November 16, 2018 – 54.76% profitable
  • November 23, 2018 – 80% profitable
  • November 30, 2018 – 67.31% profitable

The overall monthly profitable percentage was 62.39%.

Additionally, if learning how to trade forex using risk to reward, as shown in the video, a very small change can make a difference.  In this example, Gail went from 61.50% to 61.83% (a difference of only .33) and the impact on the equity graph in the simulator was substantial.  That’s the edge when using risk to reward.

You can sign-up for the forex binary signals for $199 per month.  You do need to have a basic understanding of the forex binaries 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.

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.