In this article I want to focus about one important aspect of the assessment of money management for online trading.
As you well know to have earnings in the long term it is important that profits are greater than the losses. One of the most important tips is to use a money management that may create a risk/return ratio of 1/3.
So if you decide risk 1, you need to look for a return of at least 3 times the investment.
As I mentioned in the previous article (read here), binary options with the strategy to “interlocking” can create high returns with success rates of only 30%.
The strategy provides for the opening of interlocking 2 opposite positions with positive difference. In this way each pair of investment risk will have a maximum of 15% of the capital and a potential gain of 150% (calculated values by the broker TradersLeader )
Which is the best time-frame to be used for interlocking strategy?
To ensure that there is a positive difference between the 2 options to buy I suggest to always move on graphs H1, seeking a market trend and then a support or resistance.
Step 1 – The Market Trend
To find the points on the graph from which we can develop a trend to be exploited for financial markets suggest using our custom indicator TrendGT that creates trend arrows.
Step 2 – Support / Resistance
After the position has gone to gain at least 20 pips and the trend stops on a support or resistance (depending on the maturity choice), you will need to open the second binary option of opposite sign.
Step 3 – Wait for the deadline
to be continued …