There
is a strategy for catching those massive spikes. I used to play it on FTSE and Wall Street. *goes to find his notes*
Here we go.
It's what I call
ShadowNinja's Binary Hourly Switch Method (it works for the Twenties and Fives and the rush is even bigger).
1/ If percentage drops to under 20% before halftime (30 minutes for hourlies) and hovers then buy if FTSE Daily indicates rise.
Buying low controls risk, acting as stoploss of 20-30pts in case system crashes. (Have lost lots playing binaries when my PC crashed!!) If FTSE Daily moves in one direction then hovers, then changes direction in 3 consecutive FTSE Daily ticks then it's a good indicator. If no hover and FTSE Daily indicates continual move, then obviously don't buy. Buying after the halfway mark is more risky because there are less switches from 0% to 100%. It is the way of binaries.
2/ Set mental rolling stoploss as 20% less than max profit hit during a climb.
Don't be greedy or could lose any gains if it switches again.
3/ Stoploss at 5pts below.
Never lose more than 5 points (£10 for £2/pt) in a trade. In reality this becomes 10 points (£20 for £2/pt) because of reaction times!
4/ Stay away if: huge swings (eg over 100% as can only trade trends) or not much movement (variation of only 10% for several minutes makes it difficult to make any money)
5/ Use Moving Averages on Advanced Tick Chart with FTSE daily.
Can determine if it's about to switch or point of inflexion or if it's still continueing to move in the same direction.
6/ Do not buy after halftime as it is most likely to have decided its direction even if it does move around a lot.
Usually too risky but check FTSE Daily chart for gems.
7/ This works with Twenties.
8/ If massive drop or a lot of volatility on the Twenties, slow it down by using Hourlies.
9/ Do not trade the trend.
This system works for switches only. Use end of day figures for trading the trend.
10/ Greed and impatience = loss.
Profit could rise but it could fall and be lost. Impatience makes you think you have to be in every trade.
The reward/risk is about 5/1 and the probability is about 70%
when you time it right.
If you lose your money, don't blame me. Binaries are hard work. I did turn £50 into £500 in a couple of days. Also lost it in a couple of days. That gives you an idea of how tricky binaries can be. In theory, if you were ultra disciplined and had a bit of luck on your side, you could turn £20 into about £5000 in one day, playing FTSE and Wall Street hourlies, Twenties and Five Minute Frenzies. You could probably work this method on FX and so on, if you have enough hands and eyes, and crank that target to £10k a day. Hey, can you feel the excitement and greed? Did you feel your eyes widen? That's the feeling of you about to lose a lot of money. :cheesy:
If you are undisciplined, faint-hearted and easily excited, this is not for you.
If you are not sure about the meaning of my notes, don't ask me to explain. I don't quite understand them now; made a lot of sense at the time.
-Darren
PS
Binaries are deadly. Good luck.
PPS
Don't blame me if you lose your money and the shirt off your back. If you do make a killing, mine's a pint. Ta.
