Binary Options Club

Trading using the Martingale principle is constantly found in binary options for newbie’s courses, even though in terms of the number of lost deposits it takes first place with a huge margin from competitors. New strategies and advisers are constantly appearing, "smart martingale" methods and other strange things. The binary options market also did not stand aside, and in this article, we will try to understand whether there is a profitable martingale trading strategy or is it just a marketing technique for receiving money from traders.

Briefly about the strategy. The term comes from the world of gambling and provides for an increase in the volume of the current bet compared to the previous one to compensate for past losses. So after losing $ 10, we have to bet the next one at $ 20 and so on. It should be noted that this technique is prohibited in most casinos and gambling houses. Let's finish our tour of history and move on to binary options .
BO are divided into 5 main trading types: Cash or Nothing, Assets or Nothing, One Touch, No Touch, 60 Seconds. Most of the platforms offer just 2 of them: Cash or Nothing and 60 Seconds. Each one has its own rules and advantages. READ MORE HERE.

Considering the options for using Martingale on binary options , you should always remember that the size of the profit in this market is fixed and does not change during the entire term of the option. There is a binary trading platform that allows you to close transactions before the expiration date with a smaller profit, but this is rather an exception to the rule.

Excluding turbo options, the profit margin is less than 100% and this does not allow closing previous loss-making transactions by simply doubling the volume of the next, as is done in the Forex market. Here are examples of options:

Equity options, which are the most common type of equity derivative, give an investor the right but not the obligation to buy or sell a call or put at a set strike price prior to the contract’s expiry date.

FLEX and LEAPS options offer investors increased flexibility in terms of contract customization (such as expiration date, exercise style, and exercise price) and time frame (with expirations of up to three years out).

Download free BinaryOptionsStrategyLibrary.mqh and place it in into folder \Include ([path to your MetaTrader 4]\MQL4\Include): The free library will provide several functions to build your Binary Options strategy easily and to communicate with the Binary-Options-Strategy-Tester. See Binary-Options-Strategy-Library for more details of the library.

In order to be able to make profits, the only solution is to learn how to recognize the market, learn to use the platform and the charts, learn what are the best strategies, learn how to behave like a trader.
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//--- input parameters input int period_fast = 5 ; //Fast MA value input int period_slow = 10 ; //Slow MA value input ENUM_MA_METHOD method_both = MODE_SMA; //MA method input ENUM_APPLIED_PRICE applied_price_both = PRICE_CLOSE; //MA applied price.

As you can see, to compensate for losses and profit, strategy for binary opti ons need to use a coefficient of 2.2, which is higher than on Forex, where doubling the volume is enough. This fact places high demands on the size of the deposit, and with an average option yield of less than 75-85%, the use of martingale becomes even more expensive and risky.

Another important rule on the Digital Options is that this "bet" has an expiration time. So, we also need to choose and set up when it ends (by choosing an expiration time). This expiration time can be 1 minute, 5, 15, 1 hour, 1 day, etc.

Let the series begin with the EUR / USD option, closed with a loss of $10 and a planned profit of $8.5 (85% of the option amount). To compensate for losses and make a profit, the next transaction must have an income of $18.5 = $10 (loss on previous option) + $8.5 US (profit 85%). After the calculation, we get the volume of the second transaction equal to 22 dollars, check the profit: $22 * 0.85 (85%) = $18.7.