Trading weekly binary options in the live trading room this week results in 3 winning trades and one losing trade. However, following the trades also show that trading less results in more profits.
Trading Weekly Binary Options
Most of last week, during the US session, the setups just did not come in as they should. In fact, Monday, Tuesday and Wednesday resulted in no trades — the markets were simply not doing what we anticipated. However, on Tuesday morning around 6am, the following trades were entered:[sociallocker]
- Long EURUSD Weekly Binary at 1.0975 for $26 in risk
- Long Wall St 30 Weekly Binary at 16825 for $30.75 in risk
- Short Gold Weekly 1228.5 for $35 in risk
Then during the live trading room, a Long Crude Weekly Binary Option was entered at 34.75 for $12 of risk. We had evaluated the dailies but the risk was too high on most of them so we opted to look at the Weekly and surprisingly was able to enter within $1 of price for only $12 of risk.
Since these were Weekly binaries, there was no real need to be at the computer watching every tick. Price had ample time to move in our direction.
The price at expiration, with payouts, for the trades on Friday were:
- EURUSD 1.09978 (greater than 1.0975 that we anticipated) = $100
- Wall St 30 16966 (greater than 16825 that we anticipated) = $100
- Gold 1270.473 (greater than the 1228.5 short that we anticipated) = 0
- Crude 35.92 (greater than the 34.75 that we anticipated) = $100
Actual profits are calculated by subtracting the risk we paid on entry from the payout. Using this calculation the profit realized on each trade (trading one contract) were:
- EURUSD $73.75 (100-26.25)
- Wall St 30 $69.25 (100-30.75)
- Gold -$35
- Crude $88 (100-12)
Or a total of $196. The exchange fee for each trade round-trip was $1.80 or a total of $7.20. For an overall net profit of $188.80, again trading one contract each.
The total risk on all four trades was $111.20.
The net profit was $188.80.[/sociallocker]
Dividing the net profit by the risk gives us a return on investment of 170% for the week.
By limiting our trades to just a few weekly binary options because the market was not moving as we anticipated on the smaller timeframes, actually made us money without the need to be constantly monitoring trade positions. Of course, knowing that we were in trades on longer term charts probably also helped to wait for a better setup on the intraday charts, as well.