Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Search the Community

Showing results for tags 'breakout'.



More search options

  • Search By Tags

    Type tags separated by commas.
  • Search By Author

Content Type


Forums

  • Welcome to Traders Laboratory
    • Beginners Forum
    • General Trading
    • Traders Log
    • General Discussion
    • Announcements and Support
  • The Markets
    • Market News & Analysis
    • E-mini Futures
    • Forex
    • Futures
    • Stocks
    • Options
    • Spread Betting & CFDs
  • Technical Topics
    • Technical Analysis
    • Automated Trading
    • Coding Forum
    • Swing Trading and Position Trading
    • Market Profile
    • The Wyckoff Forum
    • Volume Spread Analysis
    • The Candlestick Corner
    • Market Internals
    • Day Trading and Scalping
    • Risk & Money Management
    • Trading Psychology
  • Trading Resources
    • Trading Indicators
    • Brokers and Data Feeds
    • Trading Products and Services
    • Tools of the Trade
    • The Marketplace
    • Commercial Content
    • Listings and Reviews
    • Trading Dictionary
    • Trading Articles

Calendars

There are no results to display.


Find results in...

Find results that contain...


Date Created

  • Start

    End


Last Updated

  • Start

    End


Filter by number of...

Joined

  • Start

    End


Group


First Name


Last Name


Phone


City


Country


Gender


Occupation


Biography


Interests


LinkedIn


How did you find out about TradersLaboratory?


Vendor


Favorite Markets


Trading Years


Trading Platform


Broker

Found 2 results

  1. Well i was engaged in reading so many interesting articles here.. Well one can also look out for this amazing breakout technique "Bursting Setup" .. just google "Bursting Setup - The Financial Doctors"... for which they claim it to give up to 1:10 Risk Reward Ratio... Also they update live charts in their website pretty much everyday of the technique... Even they provide Bursting Setup Based Live Trading Room Technical Advisory too with i guess 4-5 Days of trial...not confirmed of the trial though....So a new and trendy thing to look out for.....
  2. M.A

    Hedging in Binary

    Note:- I will try to use simple forex vocab so that everyone can understand it. I hate using complex trading vocab because I remember when I was a novice, I didn't understand a single word written in "guru articles". There was a time, when I used to call Elliott waves idiot waves. For me, I have learnt a few powerful (at least for me) hedging techniques. These aren't developed or made by me but by learning and practicing, I came to know that these techniques can increase ur potential gains as well reduce ur losses (this is actually an objective of hedging technique). Lets start with simpler one. 1- Breakout failure. This hedging strategy is not specifically for binary but can be used in almost all forms of trading. I will discuss it in binary option scenario. Many traders wait for the breakout and as soon as it happens, they purchase an option. Now there is a probability of breakout failure. What if this happens? I am not here to explain breakout strategies so it doesn't really matter which strategy is being used to identify a breakout. Probability of successful breakout can be high or it can be low. Lets take a look at the "breakout" image. (made by an expert painter). You were expecting bullish trend with a conqueror look on ur face. You might succeed but what if the breakout fails? Do u accept that u lost the trade and the entire option money? Incase of forex or any other market where u have control to limit losses by closing trade early, u can close it. But incase of binary option, u define ur risk before u enter a trade. The reality is u do have control over ur binary options even after u purchase them in the form of hedging. You can limit losses by hedging techniques. Simply buy another option in favor of "breakout failure" (in my example it will be put"). Now u will have two options:- one in favor of call (which is most probably loosing) and another option (after breakout failure) in favor of put (which will most probably win). Maximum loss will be the difference between what u gain and what u loose which is much less than what u were loosing before hedging. If u want numbers to be involved in this hedging game then best way is to try it out. As an example if both options r of $100 and payout is $75 then loss would be $25 (considering u get nothing when u loose) instead of $100 which u were loosing without hedging. You can use this technique in many other scenarios where u analysis about trend fails. But be cautious and do not fall into "Greed Trap". For example u hedge ur loss with bigger amount considering that breakout failure will continue and "why not gain instead of loosing" So u buy another option with bigger amount (say $200). There can be another breakout failure waiting for this opportunity (breakout really enjoys failing especially when u r novice). Worst Case scenario is both options fail to end in the money. You loose all invested money (if broker offers no payment incase of loss. Some offer 10% to 15% of invested amount incase of loss). 2- Hedging with alternative binary options This technique is also used to increase ur gains. Example: You purchase a standard binary option in favor of call because u r expecting the market to move upwards. Assuming ur analysis is correct, u will win and thats all. Hey!!!!.. it was just an assumption which can be wrong. If it goes wrong, then u need to think of some strategy which can protect ur money and why not pocket a little gains. Experienced traders here will be thinking of 100s of strategies but I am with YOU (poor novice). You might have heard about one touch options. These options pay u upto 500% of ur investment (take a break folks, I can see mouth-watering). Conditions r really strict in case of these options and if u r not good analyst, u will loose most of the time. Think with ur brain that if they r paying upto 500%, it will not be an easy analysis. There r lower payouts too on one touch options with lesser strict conditions and where ur analysis has higher probability of success. I know at this time most of u have forgotten about "we have bought a standard binary option and we r finding something to hedge it". Now ur analysis leads u to assume that next week, market will move like ......... (whatever is the most speedy thing in the universe). This analysis further leads u to assume that market will touch a certain level at least once in a week. You have already purchased a standard binary option which will only be profitable if the expiry price is above (incase of call) the purchase price. To hedge it and to gain more profit, u buy another one-touch option (coz ur analysis led u to do so). Worst case scenario is, again, if both options loose. (Scenario 1 in "one touch hedge" image) In "one touch hedge" image, best case scenario would be scenario 2 which will result in high profits which can offset looses caused by more than 1 trade. A mixed scenario of one loss and one win can either result in lower loss or a little gain. Any thoughts and comments r welcome. Critics... dun stay away.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.