Binary option strategy to maximize your profits

Binary-options-strategy-is-to-maximize-their-profitsThere are countless binary option strategies that you can use to make money – based on your individual preference, ambition and knowledge of the market.

Here’s a list of binary strategies that you can look to for making continuous profits.

Tunnel Trading Strategy

A high profit returning strategy that is not the easiest to execute.

In order to start using this strategy, you have to ensure that you have ample market knowledge and loads of historic data available to you. Only after that, you should start using the strategy – and once mastered, it has the potential to maximize your binary options profits. The strategy can be very successful when there is high market volatility.

In order to execute the strategy, you have to find underlying trades that remain between specific values. This is called identification of tunnel trends and they can be identified with mostly any charting tool that offers historic data. In order to make the trades, you have to find the trending stocks and identify when the trends generally happen.

This can happen even with stable stocks – for example a stock is normally trading within parameters but at a certain period of the year, when specific data is published, the stock may go up or down. Now based on historic data, you can identify the upper and lower limit of the movement based on the previous response to either good or bad news. Blue chip companies offer great potential for tunnel trading and are thus preferred for people who intend to use the strategy for binary options.

For accurate implementation of the strategy, the trader has to assess the potential gap between the average low with the average high and create an area of anticipation referred to as the tunnel. In order to make trades in a time frame, the values of the stock should remain between the trading limit.

Possible Scenarios you may encounter for this Binary Options Strategy

The trade ends in the money on any of the three scenarios below :

  • It stays in the tunnel before expiry period, never touching either the higher or the lower boundary
  • The trade may end up breaching the tunnel before expiry but it ends within the tunnel at the time of expiry
  • The trade breaches the tunnel and stays outside without coming back and closing outside the tunnel

Depending upon the flexibility of the trading platform, these different combinations may be offered – however many platforms only offer basic options without additional flexibility. In some cases, it is also termed as In-Out options.

The strategy is very useful for working on Eur/USD currency pair where you can take chances on relatively stable tunnels.

As previsouly mentionned, maximizing your profit is great but you first need relevant information and historic data to make accurate decisions.

Once you have mastered the art of the strategy – chances are you will be ending in-the-money much more rather than out of the money and this is going to be your strategy of choice like many other traders.

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