Categorized | Binary Option Strategy

How To Formulate Your Own Binary Option Strategy

I understand that some of you do not trust courses that are available online due to a lot of lousy courses that are created by marketers. Therefore I decided to write this post to show you exactly how you can formulate your own binary option strategy like what I used to do in the past.

I used the exact same techniques below to formulate the 3 strategies that I am using to trade everyday which is taught in my Binary Option Mastery course.

1) Decide on a General Strategy

Everything must start from something and therefore before you can formulate a reliable strategy to use, you must have a general strategy to start with.

You must first decide whether you want to trade in the direction of the trend (Trend Riding Strategy), trade against the trend (Reversal Strategy) or trade based on the repulsion of the support and resistance (Repulsion Strategy).

For me, all my strategies are based on the repulsion of important support and resistance levels.

If you take a look the trading chart, you will find that the price is moving in the form of waves and the formation of the waves are based on the repulsion of major support and resistance level.

In case some of you do not know what is support and resistance, let me tell you a bit about it.

Support Level 1

Resistance Level 1

In fact, if you take a close look at the 2 pictures above, you will realize that they are about the same line. This is because the past support will turned into new resistance.

Personally I will suggest that you create a general strategy based on the repulsion of important support and resistance level as there are more trading opportunity available for such a strategy.

2) Decide on the Indicators To Use

Now that you have decided on the strategy to use, you should now decide on the indicators to use.

It is almost impossible to trade without the help of indicators and if you decide on using the repulsion strategy, there are a few indicators that you must used as these are indicators that provides very strong level of support and resistance.

In fact, I have written a post before on these indicators and you can read them from the link below.

/category/binary-option-indicators/

Of course, there are still a lot of indicators available and you can still choose those you personally prefer. What I have written is just a guide for you.

However I do not suggest that you use more than 3 indicators in a strategy as it will be very complicated and you will find that you do not have much trading opportunity.

3) Decide on an Entry Signal

Now that you have the indicators at place, you will need to decide which is the entry signal you want to take.

If you are using the 200 EMA and MACD indicator, you can consider entering when the price hits the 200 EMA and there is a MACD flip.

The above is just an example to show you what could constitute an entry signal. Therefore you need to decide on an entry based on the indicators you are using.

4) Back Test Your Strategy

Once you have your indicators in place, you will need to test out the performance of your strategy.

First of all, you will have to move back to at least 2 months from the present date and do a paper trade.

As you scroll the chart, you will record down the outcome of each individual trade entry based on your decided entry signal.

Then you do a rough calculation of your profit and loss based on 75% payout for each individual months and a trade size of $100.

For example, your strategy wins 30 times and loses 20 times.

Profit = 30 x $75 = $2,250
Loss = 20 x $100 = $2,000

Your total profit is $250 for that month.

You should do the calculation for 2 months and you will only accept the strategy if it is profitable for both months.

The key here is you must have a strategy that wins every month.

The amount of profits depend on your own preference. Some people may find $250 too little while some people are okay with it.

Personally, I find it too little but everyone has their own appetite for money.

5) Fine Tune Your Strategy

If you are satisfied with the earnings, then you can go ahead to trade with the strategy you have formulated.

If you are not satisfied with the earnings, you can then test with various indicators or adjust your entry or adjust the settings of your indicators.

This is what I called fine tuning of a strategy. In fact, the most tedious part of formulating your own strategy is here. You will have to spend a lot of time testing with different combination of indicators, testing various different entry time and testing by adjusting the settings of your indicators.

Once you have made an adjustment, you should go back to step 4 to test your strategy for another 2 months to see if your strategy can make profits that is up to your expectation.

The whole process can easily be around 3 to 6 months and for me, it took me 6 months to formulate a total of 3 strategies that can allow to trade in any market condition. The reason why I decided to formulate my own strategy is because I had bought quite a number of lousy courses and joined several signal services that do not work at all. These are the works of marketers and it really frustrate me.

Initially I just formulated one strategy and I find that there are limited trades every month and slowly I formulated another 2 strategies to give me optimum amount of trades everyday.

The whole process can be tedious but it is definitely worthwhile once you manage to formulate one profitable strategy. The feeling is indescribable as you know that you have a way to make consistent income from then on.

It has been 3 years from 2012 to 2015 and I am still enjoying the fruits of formulating my own strategies.

There are not many income in this world that I can say is recession proof but I am glad that I have found 2 such income, one from forex trading and one from binary trading.

With this skills, I can be sure that my son do not need to work for people in future as I can just impart this skill to him and he will be able to make money without having to do a day job.

This is something that I am proud of. Instead of parents leaving a lot of money to their children which in turn got spent away either in luxurious items or lifestyle, I will rather teach them how to fish so that they can feed themselves for the rest of their live.

For those of you who do not have the time to formulate your own strategy, you can take a look at my Binary Option Mastery Course which comes with a 120% refund policy.

The main purpose of this policy is to take the risk off you. This is to show you how confident I am about my own strategy and how true is my monthly performance report.

As long as you find one fake winning trade for the KB5 that I have posted on my performance report, I will refund you 120% of the course fee. I have tried my best to take the risk off you and if you are still wary about the course, there is nothing I can do.

However for those of you who are totally new to trading and not sure if you can understand the course. Please rest assured that the course is explained to you in a very simple manner that even newbie can understand and follow.

All you need is to follow my instruction to setup the indicators required and then look for the setup that I teach you in the course, you will be able to make money.

 

Disclaimer

Binary Options carry a high level of risk to your capital due to the volatility in the underlying market. These products may not be suitable for all investors. Therefore, you should ensure that you understand the risks and seek advice from an independent and suitably licensed financial advisor.

This covers all information in this website, and no further information provided within this website or through correspondence with the author or webmaster on any platform is intended to supersede this disclaimer

7 Responses to “How To Formulate Your Own Binary Option Strategy”

  1. Chris says:

    Thks Kelvin for sharing this post. However I have already taken your course and is already making my second month of profits from trading binary option.

    I was pretty skeptical about you for a start as I don’t believe that a real trader is willing to share his strategy with others. I am glad that I am wrong and I can now impart this skill to my children like what you say.

  2. Kelvin says:

    Hi Chris

    Hurray

  3. Danny says:

    I just want to tell you that I am already in my second week of profitable trading after taking your course.

    Great Stuff!

  4. Tan says:

    Thks for the post.

  5. Jason says:

    I have a question for you Kelvin.

    Is your course ipad compatible? I like to access everything via my ipad and will like to know this before I get into your course.

  6. Caden says:

    I just want to drop you a message to tell you how much I love your course.

    You made everything seem so easy and I love the way you teach. By the way, I have made 6 winning trades and 1 losing trade so far with what you taught me.

  7. Kelvin says:

    Hi Caden

    Glad to hear this from you.

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