RekonX: Trading Binary Volatilities 24 By 7

Hi All,

I was away for a while from writing and posting due to my exams. Now, I am resuming by posting my trading logs on binary trading. In last one year I got hundreds of requests on sharing my trading tools, techniques etc, by I could not find much time explaining them.

So, I am thinking doing it much more interactive way this time. I am opening a WhatsApp group so you can join, discuss and share your thoughts easily.

I will have weekly target to achieve, along with that few practical methods we will be applying in case we are failing on the target.

We are going to maintain an excel worksheet for all executions.

We will explain why we are taking trades based on statistical model developed on various randome indices.

We are going to use a reputated binary broker, information will be shared on the WhatsApp group.

In the mean time you can go through my previous works.
Binary Options 24 BY 5
Rekon's Binary Option Trading with M15 Chart
Multi Time Frame Analysis for Spot and Binary Options
Rekon Xs and Market Scanner for Spot and Binary Options

Cheers!
Rekon
Join the WhatsApp group and post your observations here

So, as a tool we are going to get a MT5 platform for trading as this is mostly used by everyone. Otherwise, if you want a web terminal, or mobile app for IOS and android those are also available.

Benefit of all these platforms are you need not to stop yourself due to limited access, rather use them as per your convenience.

All these volatility indexes are live 24 by 7, so it is easy to meet your weekly target!

I just want to recap the old says here - understand your risk capital first and allot them in a way so that they come back to you in double and keep the rotation going on so that they keep on multiplied!

Risk Capital and Trade Volume has direct relationship .

Less Risk Capital = Low/Lowest Volume = Sufficient Margin for Capital = Low Risk

The method I am explaining here, is Low/Medium Risk but does not suits high risk game.

A. We will explain this for growing Low Capital using Low/Medium risk on the Risk Capital, Check the trade size for Risk Capital <= 100 USD.

To stay in the game, you need to ensure positive return on your investment (ROI) on your Risk Capital.

How much it should be? Let's be realistic, if you are in a hurry on getting money out of it you need bulk cash first, but I am not considering them because then the whole thing gets converted into gambling even if you are a pro player in this industry and knows technical and fundamentals as back of your hand, you risk on your capital you are gambler!

I would rather prefer a slow pace to build my Risk capital into a money inventory by securing periodic return and accumulating them.

Here is a sample computation on keeping track of your return.

Next, I will be explaining the below points.

A. Download instruments data from your trading terminal.
B. Understand data points.
C. Develop statistical model.
D. Do Time Series Analysis.
E. Check volatility
F. When to Trade
G. What to Trade
H. Do's and Don'ts.

Please subscribe the thread and stay tuned!

Before, I go to the technicals. Here is how I set my weekly target. Leave the market as soon as the target is achieved or keep the trading volume to minimum.

This method is called earn back the expenses: You create a log for all your daily expenses in a worksheet and try to cover last week expenses with your trading skill.

Ideally you should maintain a gap of 1 week or be at par on recovering the daily expenses.

So, week ending on 12th march - you should have a target on covering the expenses occured during (1 to 5th - Always close the prior month and carry forward the remaining +/- in next month)

Here is a calculation showing how you should approach on trading with your capital < 100 USD while targetting earn back your last week's expenses.



Calculation showing recovering $239 back in 7 days time.

So, what I have done here is using my order scripts I have placed 4 buystops and 4 buy limit orders as the H4 candle shows upward movement. Trade direction should be on same direction.

The profit targets are (1000, 2000, 3000 and 4000) from the same point. So all these eight positions may get active during this 4 hours. We will discuss what to do next in case of failure.

Most likely, one or two positions will close within 5 mins of the trade execution, but before the higher profit positions get closed, the instrument may do fluctuations, to avoid this we will also place a sell stop just near the opening price of the H4 candle and set the take profit near last H4 candle. The volume will be sum of the opened buy volume.

When you have done a trade balancing like this your equity will not run-off even if the trade direction got change. Although, you need to be more accurate on the entry points, trading time, exit points, adjusting the positions etc.

For all these we will take help from statistics and avoid random entry and exit in market. We shall discuss on this later.

Alright so here is the summary of all actions happend in last 2 hours!

4 buy stops (0.01 volume each) with profit 1000, 2000, 3000 and 4000 points got TP hit
4 buy limits (0.01 volume each) with profit 1000, 2000, 3000 and 4000 points got TP hit

1 Equity saver Sell stop (0.07 volume as per ATM buy volume) placed within 30 mins of buy pending orders with 10,000 points got TP hit

1 repositioning of sell stop (0.07 volume) is not filled so we need to delete it.



Updated position:

So, statistics wise we got 100 points extra in this session due to additional sells stop. If we able to get 300 points from each session then we will be able to meet the target in 6 days!

So, every day 4 sessions atleast.
Execute 8 orders - 4 limits and 4 stops
Target H4 candle
Target H2, H3 for trade execution while H1 is most of the time decider of H4
In next 30 mins in H2, place an equity saver order opposite of main orders with equal volume
Close all positions as soon as all main positions are closed
Adjust / Hedge for open trades

So, here is an optimistic ROI from this trading style.

If we get 5% ROI from each session that will be good enough for this model to success.

A new H4 candle is opened. We will check next hour for trading opportunities.

In next session,

Instead of using wide take profits such as 10,20,30,40 we are going to narrow them down to only 10 points and place total 8 orders limit and stop.

Placed, 4 BuyStops and 4 BuyLimits

While posting this, all buystops are executed and closed at TP!

But the return is not much because I used only 10 points TP which is very less for Random 100 index! I got only 0.4% return on the positions while my session target is min 5%.

In this kind of situation, we should not chase the market, rather we should close the other pending orders which are not executed and wait for the next session!

Next session would be at 2:30 AM IST time - which is the last session or you can say 6th session of the day which I am not going to attend. Tomorrows first session is starting at morning 6:30 AM, I am going to aim for that. Post that next session would be at 10:30 AM, I can attend that as well. Later in the evening I will try to attend at 10:30 PM.

Session 1: 6:30 AM IST
Session 2: 10:30 AM IST
Session 3: 2:30 PM IST
Session 4: 6:30 PM IST
Session 5: 10:30 PM IST
Session 6: 2:30 AM IST