Strategy "Binary Gambit": description, advantages and disadvantages
"Binary Gambit" is a strategy for trading binaryoptions on important news. Like all others, it has its advantages and disadvantages. It has its fans and opponents, which is largely determined by the nature of the trader. Let's try to figure out what kind of strategy it is, what the results can give and to whom it fits.
Trade on the news
Trade on important news has its ownFeatures that attract some traders and deter others. Its characteristic feature is the increased volatility of the market, which can bring both high profits and large losses. On especially important news, the price can change by tens of points per minute, which in the usual situation one has to wait several hours. It's no wonder that traders who are looking for any useful information on how to make money on binary options try to learn how to trade on news to get the maximum profit in the shortest possible time.
News is published almost every day, sometimes2-3 times a day. Each broker has a page with a calendar of events for the day and week, where the news is marked with one, two, three asterisks or other icons. The more icons, the more important the news - serious price movements give news usually marked with three icons. One of the most important news is the number of people employed in the non-agricultural sector of the United States, Non Farm Payrolls. Traders call this news "Non Pharma", it goes out every first Friday of the month at 3:30 pm Moscow time. On the price chart, this moment stands out with a strong surge.
The essence of the "Binary Gambit" strategy
Before the release of an important news trader shouldconclude two transactions: to buy and sell. That is, in one or two minutes, the Put and Call options must already be purchased with the same amount of investment. For example, the minimum allowable amount for buying an option from many brokers today is 30 rubles, and many beginners start with it in order to minimize losses in the training process. We immediately buy the call option for this amount and Put. At the same time, we expect that the price will sharply fly to one side and the corresponding option will bring us profit. But the opposite option will cause a loss, where is the gain? Yes, but the loss is much less than the profit if you chose the right broker (see below). For this reason, trading with the "Binary Gambit" strategy is not possible for all brokers, but only for those that meet certain requirements. The final profit will be equal to the difference between the win on the first option and the loss on the second. Let's look at a concrete example for an investment of 30 rubles.
Strategy on a concrete example
Let's say the option premium is 80%, inIn this case, the gain will be 80% of 30 p = 24 p. Loss on the second unprofitable option depends on how quickly we close it - the faster it is done, the less will be the loss. Let's say that we closed the loss option in one minute and the loss on it was 20%, it is 6 rubles. That is, the total gain was 24 - 6 = 18 p. or 60% of the investment amount. It is clear that if we bought an option worth 1 million, then the profit would be corresponding - the figures are different, but the essence of the trade is the same. Specific premiums and loss amounts are set by each broker, they need to be carefully studied and find the most beneficial options, since even the same broker interest and loss rates may differ on different assets (currency pairs, shares).
Advantages and disadvantages
The strategy "Binary Gambit" attracts in the firstturn by its simplicity. You do not need to do a serious market analysis, which can take several hours to a number, do not need professional skills and knowledge. Indicators also rest, while we trade on the release of important news using the strategy "Gambit for binary options." Even a person who is far from trading can start earning right away - it's enough to understand the technical side of the issue. This is an unconditional and big plus.
The strategy is profitable on a large gaptime if you do not change the amount of investment. It will not give a 100% result - such systems do not exist in nature. That is, it will not work without losses at all, but in the long term the result is stably positive, albeit small. This strategy may well serve as a benchmark for those who do not yet know how to make money on binary options.
How so, you ask, because the system as ifwin-win - the price will necessarily go in one direction or the other, that is, up or down. This is the main minus of the strategy - unfortunately, the price does not always go only one way. Very often, especially in the summer, when volatility in the market falls a little, the price of news makes for a few seconds sway in one direction and then to another, leaving traders only regret their losses.
After expiration of expiration - forThis trading system is 15 minutes - the price goes back to the point where it started. One of the options will still win, because at least one or two points will be the difference. But in this wild whistle, when the price just flies back and forth, it's impossible to understand where it will stop. Therefore, it is impossible to understand in time which option is profitable and which one should be closed. It's like watching a ball on a roulette table. The end result in such a lot will be unprofitable, however, the loss will be less than the profit at the normal course of the price. Due to this in the long term, the strategy still gives a positive result.
Another problem with trading on this trading system is slippage or requotes, which is essentially the same, although it differs little.
Requests and slippage
Requests and slippage - impossibilitythe broker to process the user's orders because of too fast price movement. Let us explain this with reference to the strategy considered in the article. You bought two Put and Call options with an expiration time of 15 minutes. The news came out, which caused a spasmodic price movement down. So, Put's option turned out to be profitable for us, and Call is unprofitable, and we need to close it, the sooner the better, which we are trying to do. But while our order reaches the broker, the price has already changed (remember the huge volatility). And the order can not be executed at the originally announced price.
Information about this comes back to us withthe offer to close the option already at a new price, less profitable. While we agree and inform the broker about this, the price has gone again. So it can last quite a long time (in the scale of the news trade) - up to several minutes. By this time, the loss on our call option may approximate the size of the Put option premium and the profit will be minimal, if at all.
A logical question arises whether it is worthUse the "Binary Gambit" in trading and how to trade if the broker does not give such an opportunity. The answer is simple: you need to choose the right broker and connect only high-quality high-speed Internet. This should not save the trader, if he wants to work professionally.
The expectation of a strategy
For the reasons described above, the "Binarygambit "does not give 100% of the results and the profit on it is quite modest.If you are promised and guarantee a profit of 500% per week, this will be a notorious lie, which is most likely not given by any strategy. , but a stable result. "The binary gambit" meets these requirements: in the long run, it still turns out to be profitable if you do not change the amount of investment.
How to choose a broker
Only in the Russian market does not less workhundreds of Forex brokers and binary options. How to choose the right one? Let's leave aside ethical questions (reliability, payment of winnings) and we will concentrate on a technical side. It is necessary to choose a broker, which enables early repayment of a loss-making option with a minimum loss amount. Without this condition, trading on the "Binary Gambit" system is simply impossible.
In the network you can find different opinions, but havethem and some common points. So, many traders, more often beginners, remain disappointed with a small percentage of profits compared to what they were promised. The real profit, judging by the reviews, ranges from 20% to 40% per week. Virtually all traders agree that if you strictly adhere to the rules and the amount of investments, then the deposit can not be drained, which can already be attributed to the unconditional advantages of the system. Often in the reviews of the "Binary Gambit" mention the simplicity of the strategy, which does not require special knowledge and long training.