Contents:The worldwide financial market is huge. The overall number of traders watching the price action an a daily basis exceeds hundreds of thousands if not millions. All of that people are using the same instruments to trade, the same types of analysis to predict the market. Sometimes people go too far in their wish to make accurate forecasts and they use too complicated ways. For example, some of the traders put so many technical indicators on the chart and they can not see the price behind them. It’s ridiculous. Have you ever had a thought that the profitable binary options trading has to be much more simple? This trading strategy for binary options has been invented exactly in this way.
What is the DoubleUp Strategy?
One of the main advantages of the Double-up trading strategy is in the simplicity. You do not need to have a degree in the financial or mathematics field. Nothing about reading news with too complicated terms analysing enormous number of factors influencing the price. There’s no need to make multi-level mathematical calculations using mathematical formulas. And this trading strategy does not require any technical indicators, filters, settings etc. It is simple like double-up.
How to use Double Up Strategy?
The main idea is based on the nature of the market price action. Have you ever noticed that the prices move like waves. Always. Up and down. Of course, there are some periods when some assets move in one direction. But these periods do not last long usually. So before starting the trading, you should use wait-and-see mode at order to understand the volatility level of the market in this exact moment. Once you are sure that the market is not going one way, you can start trading.
Next point is that you have to choose ONE direction and it does not matter whether is it going to be PUT or CALL. The main requirement is to use the same button all the time.
And the last requirement for DoubleUp trading strategy for binary options is to enlarge the volume of your next bet multiplying it by 2.2 in case if the previous bet was lost.
If you like this strategy, you might also be interested in this Guppy Trading Strategy
Example of a Double-Up Strategy
This coefficient can be enlarged if you have an account deep enough. So, for example, you make a bet of $1 and it’s been negative. The second must be $2.2, the third $4.84 and so on. As long as the market is always volatile, you will get your profit sooner or later. The probability that all of your trades will be negative is ultra low, just because the market is going up and down almost always. Let me guess your next question. Why do we double-up the volume of the next trade deal if the previous was lost? That’s the main trick of this strategy. Once a deal appears to be profitable, it returns ALL the losses from ALL the previous negative deals. In addition, it also gives a small but stable profit. The effectiveness of this trading strategy is in the fact that YOU NEVER LOSE. But the main rule is not to be greedy and come back to the starting point after every profitable deal. So for example, if you started with $1 and you have got a profitable position with $8 volume, you must come back to $1 after that.
This trading strategy is suitable for ANY timeframe and ANY asset, whether it’s going to be EUR/USD, GOLD, or Mexican Peso. The nature of every instrument on the financial market is the same. Coming back to the timeframes, the more effective ones should be ultra-short ones, like 1 minute or 5 minutes for instance. But this trading strategy works well also for longer periods.
One more condition to be noticed. Your account balance must be deep enough in order to withstand several levels of negative outcomes. The best amount of your deposit should be more than 5 levels. An example of the calculation is listed below. We use PUT options for EUR/USD currency pair (85% profitability), we start from $10 and we use 5 minutes timeframe here.
If you use Double Up the maximum profit you can generate will be 1020$ plus deposits while the maximum loss – 60$ providing the ratio for reward-to risk of 420$:60$ or said in other words – 7:1. This value itself is truly impressive because experts recommend seeking 3:1 or higher.
The total amount of the account balance should be around $1000 for this example, which is a rather bad scenario according to our experience because in most cases we get profit on the third or the fourth level.
Well, you might say that such a profit is comparatively small considering the total amount of money used for all of the deals. But the trick of this trading strategy is that YOU NEVER LOSE in case if you follow all the rules and if you have deep enough account balance to trade.