The Binary Parabola

8/18/2019 The Binary Parabola

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The inary

Parabola

Reproduction or translation of any part of this work by any means, electronicor mechanical, including photocopying, beyond that permitted by the copyrightlaw, without permission of the publisher, is unlawful. This e-book cannot beresold.


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RISK DISCLOSURE STATEMENT

Trading any financial market involves risk. This e-book, the website and its

contents are neither a solicitation nor an offer to buy/sell any financial market.

The contents of this e-book are for general informational and educationalpurposes only (“contents” also means the website and any email

correspondence or newsletters related to said website).

Although every attempt has been made to assure accuracy, no expressed orimplied warranty is given as to its accuracy and no liability is accepted for erroror omission. Examples are provided for illustrative purposes only and shouldnot be construed as investment advice or strategy.

No representation is being made that any account or trader will, or is likely to,achieve profits or losses similar to those discussed in this e-book.

Past performance is not indicative of future results.

By reading this e-book, subscribing to associated mailing lists or using thewebsite, you will be deemed to have accepted these terms in full.

The author, the e-book, the website and its representatives do not and cannot

give investment advice, nor do they invite customers to engage in investments.

Every effort is made to ensure that the website is available 24 hours per day,but no liability will be accepted if, for any reason, the site is not available.

The information provided in this e-book is not intended for distribution or useby any person or entity in any jurisdiction or country where such distributionor use would be contrary to law or regulation, or which would subject anyassociated entity to any registration requirement within such jurisdiction orcountry.

Hypothetical performance results have many natural limitations, some of whichare mentioned below. No representation is being made that any account willor is likely to achieve profits or losses similar to those shown. In fact, thereare frequently sharp differences between hypothetical performance results andactual results subsequently achieved by any particular trading program.


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One of the limitations of hypothetical performance results is that they aregenerally prepared with the benefit of hindsight. In addition, hypotheticaltrading does not involve financial risk and no hypothetical trading record cancompletely account for the impact of financial risk in actual trading. Forexample, the ability to withstand losses or to adhere to a particular trading

program in spite of trading losses, are material points which can also adverselyaffect trading results.

There are numerous other factors related to the market in general or to theimplementation of any specific trading program, which cannot be fullyaccounted for in the preparation of hypothetical performance results, all ofwhich can affect actual trading results.

The right to change these terms and conditions without notice is reserved. Youcan check for updates to this disclaimer at any time without notification.

The content of the website and this e-book are copyrighted and may not becopied or reproduced.


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TABLE OF CONTENTS

PREFACE .............................................................................................................. 5 WHAT ARE BINARY FOREX OPTIONS? .................................................................. 6

THE TRADING STRATEGY...................................................................................... 8

SETTING UP METATRADER ................................................................................... 9

THE STRATEGY RULES ........................................................................................ 12

HOW TO TRADE“UP” ............................................................................................. 12

HOW TO TRADE“DOWN” ........................................................................................ 13

TRADING EXAMPLES ......................................................................................... 14

TIPS FOR TRADING ............................................................................................ 19

MONEY MANAGEMENT..................................................................................... 20

FINAL THOUGHTS .............................................................................................. 22


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The Binary Parabola Preface

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PREFACE

This objective of this e-book is to help dispel rumors and generalmisinformation currently found on the Internet regarding Binary Options.

The system described is the result of solid testing plus a lot of trial and error.

It is not intended to be a history lesson on trading or the currency markets.Neither will it describe what specific currency symbols mean or how tocalculate the value of pips - that information is not relevant to trading BinaryOptions but, if those subjects interest you then all the knowledge you couldpossibly wish for is WIDELY available on the internet - all just a simpleGoogle search away.

What you WILL find in this e-book are the essential things you need to knowto make a consistent, daily income... and, truthfully, what else do you reallyneed?

So… please read the content of this e-book carefully - take the information

on board, analyze it and use it to your advantage.


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The Binary Parabola What Are Binary Forex Options?

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WHAT ARE BINARY FOREX OPTIONS?

Binary Forex options are very similar to stock and commodity futuresoptions:

1) You pick an instrument/symbol2) You pick a direction (up/down)3) You pick an expiry time4) You pay a premium5)

They expire “in the money” (you win), or They expire “out of the money” (you lose)

However, there are some subtle differences between regular andBinary Options:

1) You decide the premium2) Your “in the money” return is agreed before proceeding

The main advantages of Binary Options over normal trading (Forex,stocks, commodity futures, etc.) are:

a) you only need to be correct regarding direction – thedistance that price moves in your favor is irrelevant… up is upand down is down – it does not matter whether you are correctby 100 pips or 0.1 pips

b) your risk (the premium) and reward (the payout – anagreed percentage of the premium) are both fixed and known in

advance

To put this into context, assume that you are watching a specificcurrency pair i.e. EUR/USD, and feel that the value of that pair isabout to fall.You decide to consider a 15 minute expiry, $20 "down trade" and areoffered an 80% return.


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The Binary Parabola What Are Binary Forex Options?

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You accept the offer which means there are now two possibleoutcomes:

1. When the option expires (after 15 minutes), your prediction was

correct and you receive $36 (your original $20 premium + $16...the 80% return stated)

OR

2. Your prediction was wrong and you get nothing i.e. you lost your

$20 premium

…hence the term “Binary Options” – two possible outcomes!

You are either correct (making a gain), or incorrect (losing thepremium paid).

The important point to remember is that right is right and wrong iswrong!

What does that mean? Simple - if you take an "up trade" then priceonly needs to be above your entry price when the option expires toreceive the full return (70%/75%/80%/85%, etc. offered)... it doesnot matter how far above.

This is very different from Forex trading where your return is relativeto how far price moves in your favor.


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The Binary Parabola The Trading Strategy

8

THE TRADING STRATEGY

Ok... so now to the heart of the matter.

This is where the mystery ends and you learn how to make an ALMOSTguaranteed daily return by trading binary options.

With all of the hocus-pocus and tales of “secret methods”, “angry floortraders”, “Russian rocket scientists”, etc. that proliferate, you will probably

be stunned to discover that you only need the simplest of financialindicators and some very basic mathematics to succeed as a Binary Optionstrader!

And the secret is… (drum roll)…

Parabolic Stop and Reverse (widely known as the PSAR indicator)

Shocked? Disappointed? …well, that is life!

As you will eventually learn, the simplest of approaches are often far moresuccessful than the complex ones.

All you need to trade this system (other than a Binary Options account)is a copy of the MetaTrader 4 trading platform to provide you withsignals, and you can obtain that for free by requesting a demo accounthere: https://www.tallinex.com/open-account/

So, to work…

https://www.tallinex.com/open-account/https://www.tallinex.com/open-account/https://www.tallinex.com/open-account/https://www.tallinex.com/open-account/


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The Binary Parabola Setting Up MetaTrader

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SETTING UP METATRADER

After installing your MetaTrader 4 platform, open the application and youwill see some default charts.

To avoid clutter, delete those default charts by clicking the red [X] in thetop-right of each chart window.

Next, click the “New chart” button…

…and select “EURUSDecn” from the “talFOREX” sub-group.

When the chart opens, click “M1” in the tool bar to switch the chart tothe 1-minute timeframe:


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You should then click the “Candle view” button and also the “Magnify”

button once or twice to make the chart more readable:

If all is well, your chart should look like this:

If you find the grid distracting then press Ctrl-G on your keyboard tomake the chart look like this:


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Finally, expand the “Indicators” list in the Navigator panel by clicking thelittle [+] to the left of “Indicators”…

…and scroll down to find “Parabolic SAR”.

When you find it, right-click the name with your mouse and select “Attach to Chart” from the context menu that appears… and your chart

will look like this:

…and that is all you need to trade this system!


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The Binary Parabola The Strategy Rules

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THE STRATEGY RULES

There are only two directions you can trade… up and down.

These are known as “up trades” (or “CALL options”) and “down trades” (or

“PUT options”).

How to trade“UP”

Wait until a candle closes and the green PSAR dot has switched from beingabove the candles to below – these are “trigger candles”.

Several “up trade” trigger candles are shown below:

The rule is simple – once a trigger candle has formed and the body of thatcandle is black, open a 60-second up trade in your Binary Options platform.


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The Binary Parabola The Strategy Rules

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IMPORTANT: You *must* wait until the trigger candle has closed and thenext candle has started drawing before taking your Binary Options trade asthe PSAR indicator is based on closed candle prices.

How to trade “DOWN”

The rules for a “down trade” are simply the reverse of the “up trade” rules.

Wait until a candle closes and the green PSAR dot has switched from beingbelow the candles to above – these are “trigger candles”.

Several “down trade” trigger candles are shown below:

Once a trigger candle has formed and the body of that candle is white, opena 60-second down trade in your Binary Options platform.

IMPORTANT: You *must* wait until the trigger candle has closed and the

next candle has started drawing before taking your Binary Options trade asthe PSAR indicator is based on closed candle prices.


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The Binary Parabola Trading Examples

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TRADING EXAMPLES

As you will soon realize, this strategy offers a vast number of tradingopportunities each day - typically 100+ trigger candles on EUR/USD alone!

We will now look at those example triggers and see how things panned out…

1) PSAR above + white body = DOWN triggerResult: Lose

2) PSAR below + black body = UP triggerResult: WIN

3)

PSAR above + white body = DOWN triggerResult: WIN

4) PSAR below + white body = Invalid triggerResult: No trade


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5) PSAR above + black body = Invalid triggerResult: No trade


7) PSAR above + white body = DOWN triggerResult: WIN



Starting with a $200 account and trading $5 per time with an 80% tradepayout would have resulted in the following:

$-5 + $4 + $4 + $4 + $4 + $4 + $4 = $19 gain in 90 minutes

Obviously, you could trade larger and make a lot more, but the point here isto show how successful the strategy can be.

But you do not just have to trade static amounts – you can also implement a “recovery mechanism” in the event of a losing trade (or 3).

Consider this scenario (that preceded and runs into the examples above)…


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1) PSAR above + white body = DOWN triggerResult: Lose

2) PSAR below + black body = UP triggerResult: Lose

3) PSAR above + black body = Invalid triggerResult: No trade



6) PSAR below + black body = UP triggerResult: Draw – assume lose

7)

PSAR above + white body = DOWN triggerResult: Lose



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So what if you had traded that time period with that same $200 startingaccount and trading $5 per time again with that 80% trade payout?

$-5 + $-5 + $4 + $4 + $-5 + $-5 + $4 = $8 loss in the same 90 minutespan.

So what if there was a better way? One that allowed you to mitigate losses…

Luckily, there is!

The method is known as “progressive staking” and, though often maligned,

can be an excellent approach if used sensibly.

The concept behind progressive staking is to increase the trade size after a

losing trade with the objective of either breaking-even, making the intendedprofit or nullifying the loss.

To use the “break-even” approach, with an 80% expected gain, trade sizesfollowing each loss would be as follows:

Initial trade $5

After 1 loss, trade $7

After 2 losses, trade $15



The first winning trade would then recoup all of the accumulated losses.

Using the example above, the results would be:

$-5 + $-7 + $12 + $4 + $-5 + $-7 + $12 = $4 (rather than $-8)

To use the “initial-profit” approach, trade sizes following each loss would beas follows:


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Initial trade $5





The first winning trade would then recoup all of the accumulated losses andbank the profit expected from the initial trade.


$-5 + $-13 + $23 + $4 + $-5 + $-13 + $23 = $14 (rather than $-8)

Finally, to use the “full-profit” approach, trade sizes following each loss would

be as follows:

Initial trade $5





The first winning trade would then recoup all of the accumulated losses andbank the profit expected from the initial trade for each of the losing trades.


$-5 + $-13 + $28 + $4 + $-5 + $-13 + $28 = $24 (rather than $-8)

To simplify using the above methods, a spreadsheet to calculate thesequences in provided.

As you will see from the spreadsheet, the “break-even” approach is a muchsafer solution to staying in the game, but everyone will have their own

attitude to risk so all three methods are included.


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The Binary Parabola Tips For Trading

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TIPS FOR TRADING

When trading, have MetaTrader open with the chart of your preferredcurrency pair and have your browser showing the 'Trade' page of your BinaryOptions account.

The time in the Market Watch window of MetaTrader should be quite close to

the time in your Binary Options account, but do not be overly concerned ifthere is a difference of a few seconds.

Select the 60-second option for your preferred currency pair (EURUSD is agood general choice).

Enter the amount you wish to trade.

Wait for a trigger candle to suggest whether price should go UP or DOWN.

Place an "up trade" or "down trade" as appropriate.

Could things get any easier?

Details about funding, etc. are explained on the brokerage FAQ page, butthey will have live-chat staff to assist you.


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The Binary Parabola Money Management

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MONEY MANAGEMENT

There is not much to say here except to go “slow and steady” .

Regardless of how much you deposit, never bet the farm on one trade!

Instead, stick with a sensible number that allows you to withstand a runof losing trades and also allows you to use the progressive stakingsystems comfortably if you want to - that way, you can stay in the gameand profit (unlike the majority of Binary Options traders!)

A good rule of thumb is to limit your trades to 2% of your accountbalance.

If you open your account with $250, that would equate to $5 per initialtrade and, with 100+ potential trades showing up each day, it is quiterealistic to expect 10 net wins - especially if the progressive stakingmethods were used.

On that basis (and assuming an 80% payout), this is what you couldachieve from this strategy over 20 trading days (one calendar month):

Day Balance Trade Profit 1 $250 $5 $402 $290 $6 $483 $338 $7 $564 $394 $8 $645 $458 $10 $80

Week 1 gain: $288

6 $538 $11 $887 $626 $13 $1048 $730 $15 $1209 $850 $17 $13610 $986 $20 $160Week 2 gain: $608


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The Binary Parabola Money Management

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11 $1146 $23 $18412 $1330 $27 $21613 $1546 $31 $24814 $1794 $36 $288

15 $2082 $42 $336

Week 3 gain: $1272

16 $2418 $49 $39217 $2810 $57 $456

18 $3266 $66 $52819 $3794 $76 $60820 $4402 $89 $712

Week 4 gain: $2696

21 $5114


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The Binary Parabola Final Thoughts

FINAL THOUGHTS

If you have read this far then it shows that you are serious about makingmoney and changing the life you are currently living.

With that in mind, please take time to master this trading techniquebecause it can serve you for the rest of your life.

Get used to waking up each day and knowing that you have multiple profitopportunities ahead of you.

The laws of this trading strategy WILL NEVER CHANGE - They aremathematical... scientific... they will remain constant, regardless of whathappens in the markets.

This is the most perfect "side business" you could ever start - one thathands you super-sized gains in minimal time.

Like any business, you will have losses, but they will pale in comparison tothe many winning trades you will enjoy... and the progressive stakingsystems can effectively nullify them so they hardly even cause a bump onyour road to financial security.

Good luck in your trading career - remember to reward yourself with theindependence and freedom that accompanies success.

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The Binary Parabola

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