"Binary Gambit" - Binary Trading Strategyoptions on important news. Like all others, it has its advantages and disadvantages. She has her fans and opponents, which is largely determined by the nature of the trader. Let's try to figure out what this strategy is, what results can give and to whom it suits.
Trading on the news
Trading on important news has itsfeatures that attract some traders and scare others. Its characteristic feature is increased market volatility, which can bring both high profits and big losses. On especially important news, the price may change by tens of points per minute, which in the normal situation has to wait several hours. Not surprisingly, traders who are looking for any useful information about how to make money on binary options, try to learn how to trade it on the news in order to get the maximum profit in the shortest possible time.
News comes out almost every day, sometimes2-3 times a day. Each broker has a page with a calendar of events for the day and week, where news is marked with one, two, three asterisks or other icons. The more icons, the more important the news - serious price movements usually give news marked with three icons. One of the most important news is the number of people employed in the US non-farm sector, Non Farm Payrolls. Traders call this news Non Farm, it is published every first Friday of the month at 15:30 Moscow time. On the price chart, this moment is highlighted by a strong surge.
The essence of the strategy "binary gambit"
Before the release of important news, a trader mustto conclude two transactions: for purchase and for sale. That is, in one or two minutes, Put and Call options with the same amount of investment should already be purchased. For example, the minimum allowable amount for the purchase of an option with many brokers today is 30 rubles, and many newcomers start with it in order to minimize losses in the learning process. We immediately buy a call option for this amount and put. At the same time, we expect that the price will fly sharply to one side and the corresponding option will bring us profit. But the opposite option will bring a loss, where is the profit? Yes, but the loss is much smaller than the profit, if you chose the broker correctly (see below). For this reason, it is not possible for all brokers to trade using the Binary Gambit strategy, but only for those that meet certain requirements. The final profit will be equal to the difference between winning the first option and losing the second. Let's look at a specific example for an investment of 30 rubles.
Strategy on a specific example
Suppose the option premium is 80%, inIn this case, the gain will be 80% of 30 p = 24 p. The loss on the second unprofitable option depends on how quickly we close it - the faster this is done, the smaller the loss will be. Suppose we closed a losing option in one minute and the loss on it was 20%, this is 6 p. That is, the total gain was 24 - 6 = 18 p. or 60% of the amount invested. It is clear that if we bought an option in the amount of 1 million, then the profit would be appropriate - the numbers are different, but the essence of trading is the same. Specific premiums and loss amounts are set for each broker, they need to be carefully studied and find the most profitable options, since even the same broker may have different remuneration and loss rates on different assets (currency pairs, stocks).
Advantages and disadvantages
Strategy "Binary Gambit" attracts firstturn its simplicity. There is no need to do a serious analysis of the market, which may take several hours in a row, professional skills and knowledge are not needed. Indicators are also resting while we are trading on the release of important news using the “Gambit for binary options” strategy. Even a person far from trading can start earning right away - it’s enough to understand the technical side of the issue. This is an absolute and big plus.
Strategy profitable over a large spantime, if not change the amount of investment. It will not give 100% result - such systems do not exist in nature. That is, it will not be possible to do absolutely no losses, but in the long term the result is consistently positive, albeit small. This strategy may well serve as a guide for those who do not yet know how to make money on binary options.
As so, you ask, because the system seems to bewin-win - the price is sure to go one way or the other, that is, up or down. This is the main disadvantage of the strategy - unfortunately, the price does not always go only one way. Very often, especially in the summer, when volatility in the market drops slightly, the price of the news makes in a matter of seconds a twist in one direction and immediately in the other, leaving traders only to regret their losses.
After expiration time - forthis trading system is 15 minutes - the price returns to the point from which it started. One of the options will still win, because at least one or two points the difference will be. But in this wild hoax, when the price just flies here and there, it’s unreal to understand where it will stop. Therefore, it is impossible to understand in time which option will be profitable and which one should be closed. As if watching the ball on the roulette table. The end result in such a lot will be unprofitable, however, the loss will be less than the profit during the normal course of the price. Due to this, in the long run, the strategy still gives a positive result.
Another problem with trading in this trading system is slipping or requotes, which is essentially the same, although it differs slightly.
Requotes and slippage
Requotes and slippage - impossibilitybroker to process user orders due to too rapid price movement. Let us explain this in relation to the strategy considered in the article. You have bought two Put and Call options with an expiration time of 15 minutes. There was a news that caused a spasmodic price movement down. This means that the Put option turned out to be profitable, and Call was unprofitable, and we need to close it, the sooner the better, which we are trying to do. But until our order reaches the broker, the price has already changed (remember the huge volatility). And the order cannot be executed at the price originally stated by us.
Information about this comes back to us fromoffer to close an option at a new price, less profitable. As long as we agree and report this to the broker, the price is gone again. This can go on for quite a long time (on the scale of news trading) - up to several minutes. By this time, the loss on our call option may approach the size of the premium on the put option and the profit will be minimal, if it remains at all.
The logical question is whetheruse in trading "binary gambit" and how to trade, if the broker does not provide such an opportunity. The answer is simple: you need to choose the right broker and connect only high-quality high-speed Internet. At this trader should not save if he wants to work professionally.
Expectation of strategy
For the reasons described above, the "BinaryThe gambit does not give 100% of the results and the profit on it is quite modest. If you are promised and guaranteed a profit of 500% per week, this will be a deliberate lie. Such a percentage of profit will most likely not be given by any strategy. but a stable result. A “binary gambit" meets these requirements. In the long-term, it still turns out to be profitable if you do not change the amount of investments.
How to choose a broker
Only in the Russian market works no lesshundreds of forex brokers and binary options. How to choose the right one? Let us set aside ethical issues (reliability, payout of winnings) and focus on the technical side. You need to choose a broker who gives you the option of early repayment of a loss-making option with a minimum loss amount. Without this condition, trade in the “Binary Gambit” system becomes simply impossible.
Strategy reviews
In the network you can meet different opinions, but there isthem and some common points. So, many traders, often newbies, remain disappointed with a small percentage of profits compared to what they were promised. The real profit, judging by the reviews, ranges from 20% to 40% per week. All traders are almost unanimous that if you strictly adhere to the rules and the amount of investment, the deposit will not be drained, which can already be attributed to the absolute advantages of the system. Often in the reviews of the "Binary Gambit" mention the simplicity of the strategy, which does not require special knowledge and long training.
