The binary option equation is not an easy one to solve. It starts off with a huge handicap for the trader. Getting payout rates of 70-90% means that the trader is struggling against a 10-30% “house edge”…not a hurdle easy to overcome. What this means is that traders who wager on 50-50 coin-flips, do not stand the slightest chance to break even. In order to do that, one has to seriously up his trading game through the proper application of an efficient trading strategy/system, through the use of great trading signals, or through good auto-trading. The question is, are there any tricks to increase winning rates in binary options trading?
The bottom line here is that increasing winning rates is not a luxury in binary option trading, it’s a necessity.
Our tricks to increase winning rates:
The good news is that it isn’t necessarily difficult to increase these winning rates. The first step in this direction is to learn some basic strategy.
- Learn to follow the trends, to use some of the most basic indicators, like the momentum-based MACD or the stochastic oscillator, which showcases oversold and overbought asset-price levels. At this stage, there are no shortcuts and cheap tricks. One can always opt for an auto-trader to take the easy way out, but auto traders need management as well, and a person who’s entirely oblivious to what’s going on with his auto trader, will find it nearly impossible to make it work.
- The same goes for expert-provided trading signals. One can benefit from the best signal service in the world and still come up short, on account of not knowing how to properly apply these signals.
The bottom line is that we can only talk about “simple tricks” to increase winning rates on trades, once one gains a basic understanding of how the system works and what variables are involved.
If – for instance – you know the MACD-based 60-second strategy, one of the simplest binary option strategies out there, and you can apply it on a basic level, then you can talk about small tricks which can increase your winning percentages.
If on base-level, the said strategy yields a 70% success rate, you can definitely refine that by bringing candlestick patterns into the mix and combining them with the trading signals produced by the MACD indicator. This way, your trading signals will grow sharper, and your timing will improve as well.
Furthermore, in addition to this “simple trick”, you can bring in another factor too. The MACD is an indicator which hovers around 0, sometimes over it and sometimes under it. Its bullish trading signals are apparently much stronger though when they’re generated with the MACD above the 0 mark. The same goes for bearish trading signals under the 0 mark.
When we look at it this way, it’s safe to conclude that all trading strategy is about combining various “simple tricks” to increase the accuracy of the resulting signals.
Such hands-on trading can be extremely time-consuming and thus quite frustrating though. Most people simply cannot pour the necessary resources into it, so they need other “tricks” to make their trading profitable.
Get your own signals to increase your winning rates
One way to do this is by taking advantage of trading signals generated by others. There are traders out there who specialize in the application of such trading signals, and depending on the quality of the signals they use, they can indeed be quite successful. The added “advantage” of this setup is that when things turn sour, one always has someone to scapegoat.
People who can’t be bothered with generating their own trading signals, or with applying signals generated by others, will resort to auto-trading. In its current state, the auto-trading industry is rather treacherous ground to walk though. Scams surface on an almost daily basis, and given the limitations of technical analysis – on which most auto traders are based – it’s difficult to make this solution work and produce consistent results.
If one does in fact posses good fundamental and technical skills though, he can go for the own, personal auto-trader approach. IQoption now have a trading robot-creation platform, which allows traders to create their own robots. The fundamental shortcomings of these robots can be made up for through skillful operation (which essentially translates to not letting them run during high volatility market conditions).
Through the IQoption Robots platform, those who cannot (or will not) build their own robots, can also make use of traders created by other people. In fact, everything that’s built on the platform is automatically shared with the community, cost-free. This gives copy-trading a whole new meaning. This way, one will not just be able to copy someone else’s trading moves, he will also be able to automatically have all the trades executed.
The bottom line is that there is no such thing in trading as easy money. Everything has to be worked for. Tricks like the ones discussed above can only be used by those already in possession of a basic skill-set and a thorough understanding of the mechanisms behind binary option trading.