The “Good Martin” strategy for binary options: a high-risk approach with simple rules
@DavidTraderSignalsBinary options are one of the most popular forms of participation in financial markets. There are various strategies for binary options trading that help traders make informed decisions and increase their chances of success. One of these strategies is the martingale method, on which the “Good Martin” strategy is based.
1.Description of the strategy
The principle of the martingale method is quite simple: if a deal fails, the bet doubles and a new deal is made in the opposite direction. For example, if we put $1 on the “Put” option (decrease) and the forecast did not come true, we immediately bet on the “Call" option (increase) with a bid twice as high, that is, $ 2. If this forecast is not successful, the next bet will be four times higher than the previous one, and so on. This approach allows you to cover losses and make a profit when the forecast becomes correct.
However, it should be noted that this method of trading involves high risk. To use it, it is necessary to have a sufficient deposit that is able to withstand a number of doubling rates. In addition, since the “Good Martin” strategy is based on short-term trends, the preferred timeframe is M5 (5 minutes) to avoid noise on the price chart. It is better to choose the type of chart in the form of Japanese candlesticks with a color designation: bullish candles are green, bearish candles are red.
When to use the “Good Martin” strategy for binary options? It is recommended to trade during the European and American trading sessions, when there are clear trends and high activity in the market. Night time (Asian and Pacific trading sessions) is not recommended, as sideways movement prevails at this time.
2.Strategy Signals
The signals for entering the market using the “Good Martin” strategy are relatively simple. The trader enters the market based on the color of the previous candle, regardless of the time of the signal.
Consider an example of trading:
•Opening a trading platform;
•We are waiting for the end of the current candle;
•Let's assume that the candle is bearish (descending) and has a red color;
•We buy a Put option with a bet of $ 10 and an expiration date of 5 minutes, with the opportunity to make a profit of 80%;
•After 5 minutes, our forecast turns out to be wrong (a green candle appears), and we lose $10;
•At the moment of opening a new candle, we immediately buy a Call option with an already increased rate of $ 20 and the same expiration date;
•Let's assume that our forecast was not confirmed again this time (again a red candle), and after losing $20, we immediately place a bet of $40 on the decline;
•Our forecast is confirmed, and we make a profit of $72 ($40 rate + $32 profit (80%)), covering all losses (first trade of $10 + second trade of $20 = $30 losses);
•The net profit from trading in this case is $42 ($72 – $30).
A very good profit in 20 minutes?
If our forecast is confirmed the first time, and we make a profit of $18 ($10 bet + $8 profit), then we immediately enter the same position with the initial bet. If there is a trend in the market, and candles of the same color follow each other, then we enter each time with the initial bet size, increasing it only in case of an unsuccessful forecast.
However, you need to remember that the number of unsuccessful trades can reach 8-10 at a time, and your deposit must be ready to withstand a constant doubling of the position. The progression is as follows: 1, 2, 4, 8, 16, 32, 64, 128, 256, 512 and so on. This means that in order for your deposit to withstand 10 consecutive losses, there must be more than $512 in the account at the time of the last transaction.
3.Conclusion
Thus, the “Good Martin" strategy for binary options is associated with very high trading risks, which can lead to the loss of a deposit of $ 1,000 in less than an hour.
However, it should be noted that such a series of losing trades is extremely rare, and mostly Japanese candlesticks form trends, especially during the day.
In general, the “Good Martin” strategy for binary options is an extremely profitable trading strategy with a high level of risk that the trader assumes.