Oscar Grind Trading Strategy For Binary Options

No one knows if Oscar Grind was a fictional character of a real person, but he became a legend in the gambling world. Today his name is familiar even outside casino industry. He loved to play casino games and used to wager small amounts but always left with pockets full of money he won. This fact couldn’t stay unnoticed and the man was called Oscar Grind.

Grinders are gamblers who play regularly and bet small, therefore Oscar’s nickname stuck to him. People believed that he developed a special system and managed to always win thanks to implementing it. One of financial traders wanted to experiment and used Oscar Grind strategy in financial markets. The experiment was a success and that trader started to make more money. It turned out that casino betting systems can help traders earn profit.

How to Trade Using Oscar Grind Strategy

It’s a progressive strategy meaning that trade size will be increased at some point. You are probably familiar with Martingale system, the most famous progression which binary options also borrowed from gambling world. Oscar Grind strategy is safer and you’ll see why. Below we’ll discuss the strategy’s main rules:

  • First of all traders should decide what will be their initial trade size. They’ll invest this amount as their first trade. There are no specific rules to determine trade size because everyone should decide based on their capital.
  • When trade is successful, investors double the size of the next deal.
  • But after losing money they leave trade size unchanged.
  • One cycle is over once trader’s net profit is equal to the amount of his/her first trade. This is the time to return to the initial wager and start another cycle.

Example

The strategy is relatively safe since it doesn’t suggest doubling the amount after every loss. Usually binary options offer 80% profit. Assume initial wager size is $5. If you lost your first trade then your next wager will be $5 as well. If second trade is successful, next trade size is doubled to $10. Suppose that $10 binary option expires in the money. Your overall profit will be $7 (-5+4+8) and you’ll start a new cycle. But losing third trade means you continue current cycle and risk the same $10 again.

Consider the method in more detail, focusing on the data table. We believe that “unit” is equal to 5$, and the income from successful trades is 80%.

Bid number
Rate amount
Result of the transaction
Income/loss Total
1 5$ loss -5$ -5$
2 5$ loss -5$ -10$
3 5$ Income +4$ -6$
4 10$ loss -10$ -16$
5 10$ Income 8$ -8$
6 20$ Income 16$ 8$

How Effective is the Strategy?

Both Martingale and Oscar Grind systems were tested and compared. The results show that Oscar Grind is more effective than Martingale. The latter is too risky, and traders implementing it can go bankrupt in a matter of minutes. If initial wager is $5, after just several consecutive contracts closed out of the money you’ll have to risk much larger amounts: $10, $20, $40, $80, $160, $320 and so on. It’s obvious that with each losing stake risks become significantly higher.

Oscar Grind system can wipe out your binary options account as well, but it won’t be that quick because traders aren’t advised to invest more after losing according to this strategy. But, nevertheless, risks remain quite high if traders choose to follow it. In most of the cases they should enter several profitable trades to reach the desired profit.

Grind system is moderately risky and at the same time gives good chances of making money. That’s why there are a lot of binary options traders who are interested in it.

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