The betting binary options guide.com
Gambling strategies are a special type of trading strategy that can help you make money with binary options without having to predict what the market will do next.
All you have to do is find a situation in which you will make money regardless of what will happen. In this guide, we explain how to execute a gambling strategy with binary options.
For this purpose, we will answer these questions:. With the answers to these questions, you will be able to make money with binary options without having to predict the direction in which the market will move. Gambling strategies are a special type of trading strategy for binary options.
In contrast to conventional trading strategies, gambling strategies do not try to predict in which direction the market will move next. Instead, they are trying to find market environments in which you will make money with your binary option regardless of the direction that the market will move in.
To understand gambling type strategies, let us use a simple example: Imagine a coin flip. With a conventional strategy, you would try to predict the outcome of the coin toss and invest accordingly. With a gambling strategy, however, you would not try to predict the outcome.
You would ignore the question whether the coin will show heads or tails completely. Instead, you would try to find a situation in which you were sure to make money with any outcome. In the case of a coin toss, this would mean that you need to get a payout of more than percent.
In this case, you could simply bet on both outcomes, heads and tails. One bet would win, one would lose. Since you get more than a percent payout, in this example, you would win more on your winning bet than you would lose on your losing bet.
Binary Options: Trading or Gambling?
Consequently, you would end up with more money than you started with. They get you to invest in these odds continually, knowing that you might lose some trades but that you will make money by the end of the month and the end of the year. Compared to regular trading strategies, gambling strategies have a number of distinct advantages that make them uniquely suited for some trading situations. On short time frames, market movements are erratic and random.
Predicting what will happen next is difficult, often always impossible. Under these circumstances, using a trading strategy that requires you to make a high percentage of correct predictions is hard to use. This is where gambling strategies shine. While they are equally unable to predict which direction the market will take next, they can find market situations where the odds are in your favor.
To trade 30 and 60 seconds options successfully, you should strongly consider a gambling strategy. While trading longer time frames enable you to use predictive strategies, too, many traders employ gambling strategies nonetheless on these time frames.
Sports Betting compared to Binary Options
Unfortunately, employing a gambling strategy with binary options is not quite as easy as with a coin flip with a payout of percent and a winning percentage of 50 percent. Consequently, things are a little more complicated:. These limitations make it difficult to use gambling strategies with just any binary options type. Do not worry, though, because there is a simple way to use a gambling strategy with binary options.
All you need is a boundary option and a momentum indicator. Based on these ingredients, you can create a strategy that is so simple that even complete newcomers can execute it but that has a high earnings potential nonetheless.
In this example, we will use the average true range ATR as a momentum indicator. There are many momentum indicators, but the ATR is the most popular example. The ATR indicates how far the market has moved per period on average over the last time, which is exactly the type of knowledge that you need to win a boundary option.
A boundary option is double-edged one touch option. Where a one touch option defines one target price, and you have to predict whether the market will reach this target price before the option expires, a boundary option defines two target prices.
One price is above the current market price, and one price is below the current market price, but both target prices are equally far from the current market price. The result is a price corridor around the current market price. In other words, the market has to break out of the price corridor. In that case, you will get a payout of to percent. To win your option, the market does not have to remain at the target price.
It is enough if it touches the target price briefly, and you will immediately get your payout. Some brokers also offer boundary options with target prices that are closer to the current market price and lower payouts. In our example, we will focus on the percent version of boundary options, but before you use this strategy, make sure to check the payouts that your broker is offering you and adapt your strategy accordingly.
The basic idea for our strategy is simple. If the ATR has a value of 0. The price might not remain at this price level, but with a boundary option, there is no need for it to do so.
The ATR can also help you with expiries that are longer than one period of your chart. If you are looking at a chart with a period of 10 minutes and think about trading a boundary option with an expiry of 60 minutes, you can simply adjust the period of your chart to one hour.
To find the best trading opportunities, however, such a simple adjustment will not be enough. Gambling strategies shine with binary options when you find niches in the market. In this case, you know that there is a good chance that the market will reach the target price.
The market has to move in the right direction only three of six periods, and you will win your binary option. Since we are talking about average periods here, some periods will feature more movements than others, making it easily possible for the market to reach the target price with one strong period. If your broker offered you a significantly shorter expiration time in the same example, you would know that this is not a good opportunity to invest in a boundary option. Consequently, you should not invest.
The great advantage of a gambling strategy like this is that you do not have to predict what the market will do next. Instead, you try to find a market environment that puts the odds in your favor. Of course, there are much more possible gambling type strategies you can create. Feel free to modify this strategy or to create an entirely new strategy. By now, you have understood that gambling strategies do not try to win you every trade. They try to win you enough trades to make money by the end of the month.
This approach requires you to manage your money well.
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With binary options in general and gambling strategies specifically, losing streaks are inevitable. When you accept that you will win only a percentage of your trades, you will sooner or later lose a few trades in a row. The sheer power of the odds dictates that losing trades will not occur evenly spread out over all your trades but sometimes in bulk. To be in a position to survive losing streaks, you have to manage your money better than in these examples.
This means that you have to invest only a small percentage of your account balance on a single trade. We generally recommend to never invest more than 5 percent of your account on a single trade. When your account balance increases, you can increase your investment per trade accordingly.
When you suffer a losing streak, you have to decrease your investment per trade accordingly. To find the ideal the ideal investment per trade, we recommend starting with an investment of 2 percent by trade.
If you should find that you win enough of your trades to invest more, you can increase your investment step by step until you find the ideal value for you. In any case, it is better to start too low and increase your investment over time than to start too high and lose all your money with a short losing streak.
Gambling strategies allow traders to make money with binary options without having to predict the direction in which the market will move. They are ideal for traders who either lack the skill, the time, or the interest to perform complex market analysis. The easiest way to use a gambling strategy with binary options is by combining a momentum indicator such as the ATR with boundary options.
To make money with gambling strategies, it is important that you manage your money well. Invest a small percentage of your overall account balance on every trade, and avoid straying from your strategy or increasing or decreasing your investment outside of your money management plan.
As long as you stick with the tips that we presented in this guide, you should be able to easily trade a gambling strategy with binary options and make money. This website is independent of binary brokers featured on it. Before trading with any of the brokers, potential clients should ensure they understand the risks and verify that the broker is licensed.
The website does not provide investment services or personal recommendations to clients to trade binary options. The potential client should not engage in any investment directly or indirectly in financial instruments unless s he knows and fully understands the risks involved for each of the financial instruments promoted in the website.
Potential clients without sufficient knowledge should seek individual advice from an authorized source. In accordance with FTC guidelines, BinaryOptionsStrategy. Binary options trading entails significant risks and there is a chance that potential clients lose all of their invested money.
To get the best trading experience, we advise you to visit one of our most trusted brokers. Your capital might be at risk. English Dansk Deutsch Norsk. Gambling strategies and binary options Last modified: Get Binary Signals Binary Options Robot. Get Demo Account IQ Option.
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