Your capital may be at risk. This material is not an investment advice.
We now consider the example of a popular trading strategy on 15-minute chart. 100% Profitable Strategy consists of well-known and reliable indicators, so to understand its signals will be really easy. Money management is also simple, but with the use of the Martingale method for outputting transactions in profit. Thus, miserly mathematical calculation gives us 100% profitable trades. And come with us the power of mathematics!
Characteristics of the 100% Profitable Strategy
- Platform: Metatrader4
- Asset: Any assets
- Trading Time: Around the clock
- Timeframe: M15
- Expiry: 15 minutes
Indicators included in the 100% Profitable Strategy
Heiken Ashi – a well-known candlestick indicator that smoothes the price chart. Green candle indicates the upward trend, red – on a downward.
BB Alert Arrows – simple arrow indicator. It gives signals to the increase and decrease prices of corresponding arrows up and down. Indicator also provides notification by using the alert signal.
MBFX Timing – tricolor oscillator that shows the current direction of the market trend. Green indicates the upward trend, red – to downward trend. Yellow – transition, usually indicates the presence of the flat.
Rules of trade by 100% Profitable Binary Options Strategy
- Wait for a GREEN BB Alert arrow
- Heiken Ashi should change to GREEN color
- MBFX Timing should be GREEN and going upwards
- Wait for a RED BB Alert arrow
- Heiken Ashi should change to RED color
- MBFX Timing should be RED and going downwards
The main thing is not to trade immediately after the arrow on the chart, given that BB Alert indicator repaints values in real time.
Application of the Martingale system (Money Management)
According to the Martingale method, any loss-making series of transactions can be turned into a profitable. But in practice, only the initially profitable strategy will be profitable for the Martingale system. Therefore, special attention should be paid to the correct calculation of the maximum number of trades and the size of the investment.
The size of the investment depends on two main factors. Firstly, it is necessary to take into account the percentage of the payment of the option. The smaller the size of the payment, the sooner will increase the investment size. So, in your best interest to trade highly profitable assets. For example, as a broker Alpari, where profit margins of 75-80% for option validity period of 15 minutes (read more HERE).
Secondly, the calculation of trades depends on the need to bring in profit position or just to breakeven. Again, the larger investment – more profit. But it is necessary to find a balance between the size of investment and profit. Is too big investment, too bad, because you can simply run out of money on deposit.
For example, your initial investment is $10. The percentage payout of the option – 70%. Then, if you want to each transaction to be able to make a profit that is equivalent to the first investment, a chain of three of trades will look like this:
- Trade 1 $10. Profit – $7. Loss – $10.
- Trade 2 we again want to make a profit of $7, but we need to pay off the loss of $10 from the first investment. That is profit of Trade 2 should be $17. $17 * (1/70%) ~ $ 24 for the second investment.
- For the calculation of Trade 3 follow the same principles. Total loss at the moment is $34 ($10 + $24). So, a third the size of the investment should be $59, the results of which we will get a profit of $41. Thus, we cover the overall loss of $34 and get the profit corresponding to the initial investment – $7.
In general, this system is very unlikely to obtain three consecutive losing trades. But if it happens, the best solution is not to risk further and take the loss and begin a series again.
Order to secure your deposit, take it a rule never to open more than three of trades. It is best to at least a month to practice on a demo before trading on a live account. If your demo account, you often have to open more than three Martingale trades, then in the trade are clearly something wrong, and the system needs to be improved.
Most often this occurs when traders do not take into account the fundamental factors in the trade. Therefore, another important rule – do not enter the market for 30 minutes before and after a major news release. Always keep on hand the economic calendar or write a trading plan in advance for the week ahead. So you can protect yourself from sudden market shocks when every technical analysis simply does not work.
In the archive RSI_Extreme_Binary_System.rar:
- BB_Alert Arrows.ex4
- BB_Alert Arrows.mq4
- Heiken Ashi.ex4
- Heiken Ashi.mq4
- MBFX Timing.ex4
- 100% Profitable Martingale Strategy.tpl