Binary Options 60 Second Trading Strategies
The more research I conduct on 60 second trading strategies in binary options, the more I am shocked at the wide spectrum of tools available for anyone looking to invest. Out of everything that’s out there (and there’s a lot), I was able to come up with a few winning strategies that always give me the extra edge I need in order to profit.
Taleb Distribution
In his book Fooled by Randomness Nassim Nicholas Taleb examines the concept of chance in our daily lives and how it influences our actions. In trading, this strategy describes a returns profile that can be misinterpreted as a low-risk system with consistent ROI, however in reality we all know the contracts expire out of the money more than what one may originally predict.
The Taleb distribution does not describe a kind of statistical probability distribution, and is not associated with various mathematical formulas. The whole concept is built around the idea of an ROI profile with a high probability of a moderate gains, but by the same token a low probability to absorb large losses. In other words, it is a risk management strategy designed to give you a statistical edge.
When analyzing the expected value in various types of trading scenarios, you can immediately see the dominating presence of low risk and consistent return on investment ratio. This leads us to kurtosis risk and skewness risk. Extreme events are known as K urtosis, and they influence the overal l ROI dramatically. The Skew or skewness risk is more commonly referred to as the downside. So let’s say you have an open position on AAPL and you are making a put call on 24option after you just identified a dark cloud cover followed by a bearish confirmation. If you staked $1,000, and your contract expired in the money, you would have gained up to $850 in 1 minute of trading.
Expected Value Formula
The Martingale system basically takes into account a mathematical premise that when you lose, the probability of you losing the second time consecutively decreases. So, every time you have a “losing trade” you double up based on a statistical predictive model that if followed correctly, can increase the amount of winning trades. In complete contrast to the Taleb distribution, the Martingale system increases risk based on probability and assumed outcome. If you are an amateur trader I highly recommend you stay away from this method (particularly when combined with 60 second) since I have seen too many people making mistakes and losing massive amounts of money.