Binary Option Alliance

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Double Profit Tutorial

Double Profit Method.

In order to maximize your profitability with binary options, it is important to capitalize on the right market conditions. Here I would like to demonstrate a simple strategy that minimizes risk and maximizes profitability.

(If you are not familiar with option trading I suggest you first check out Option trading Explained)

The concept is quite simple, Markets move up and down- in other words-they fluctuate. To double your profits you will need to take advantage of the swings of the markets.

As you can see in the image below the price history (green and red audnzd2bars in the top section) has travelled upwards for a period of time, so when my indicators begin to signal a reversal,  (see the green arrows) I place a PUT trade with an expiry up to 1 hour (shown by the vertical white line) The horizontal white line indicates the level at which I placed the trade, which was @ 1.11031  . So what I’m predicting is that at the time of expiry (vertical while line) the price will be below the level 1.11031

The image below is  sightly more zoomed in to give you a clearer idea of what is occurring.

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In this image (above) you can see the price level has increased past my trade level of 1.11031 and is at now @ 1.11041 and I am now out of the money and the fear of loss is upon me.  As I keep my emotions stable I refer to my indicators which indicate a downward move soon so I am  relaxed and ready to place a CALL trade when the market reaches a lower level than 1.11031 in order to protect my initial investment.

audnzd4

As you can see in the image above that the price did in fact move downward below my trade level of 1.11031 and I have now placed a CALL trade @ 1.11000 ( shown by the second lower horizontal white line) using the same expiry time (vertical white line) , The first prediction is saying the price level  will go down (below 1.11031) , and the second prediction is saying the price level will go up (above 1.11000)

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As you can see, in either case I will win one of the trades.  If the price level goes down I win on my first trade. If the price level goes up- I win on my second trade- minimizing risk.  If the price level expires between 1.11031 and 1.11000 I will win both of the trades, doubling my profit.  Lets see how it plays out in the following images.

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UH OH! my first trade is out of the money. dontpanic-marvin-ltr1

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In this image it looks as if I am going to loose my first trade predicting it will expire below 1.11031, my emotions are stable and I notice the indicators signalling a downward move is about to occur .

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looking good…

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hold…………. hold……………………..HOLD!!!

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BA-BOOOOOOOOOM!! both trades expire IN THE MONEY  @1.11013 which is below my PUT of 1.11031 and above my CALL of 1.11000  so I bank myself double profit, rinse and repeat.

Interested in seeing more trades of mine, check out my Recent Trades

This was traded using the Interactive Option platform which provides  diverse expiry times on a wide range of assets, you can read my review on interactive option here.

7 Comments

  1. This is certainly a fabulous record of a trade that went well, nice execution, great use of indicators-
    But for other people attempting to duplicate the outcome, it might be beneficial to elaborate on the methods being used to predict the trading range and means of assessing the volatility to inform the timing aspect of the trade.

    • Dean

      October 29, 2014 at 7:50 am

      Hiya Carla.

      Thanks for your comment, I’m glad you see what I was tying to demonstrate- which was a trade that demonstrates the valuable use of indicators, with good timely execution of the buy and sell positions.

      The methods I use are as follows- First I asses Price action– In order to double profit with the highest probability- you want to be participating within a market that is preferably in a sideways situation, In other words the market should have no clear trend- up or down.

      second I assess volatility– this can be done on my Tools page or alternatively you can use the Volatility calculator available here http://www.investing.com/forex-tools/volatility-calculator.

      Third I choose an expiry time- The expiry time is directly proportional to the time frame of the charts I use to asses the price Action- which is usually the 30minute or 1hour charts (sometimes as low as 15) A popular indicator/signal I use to determine expiry time is the coppock curve with a moving avg of 7. I seek out the time frame(15mn,30min,1hr) on which the coppock curve has most recently crossed its moving average of 7 and that gives me a reliable time frame in which to trade with.

      PRACTICE CAN AND WILL IN MOST CASES MAKE PERFECT.

      It takes time to learn these techniques- its not just going to be hardwired into your brain overnight- Just like most things in life, successful trading takes time, effort and dedication! Some people pick it up straight away, for others it can take months.

      EXCELLENT question Carla, I hope I shed some light on this matter and you can put my strategy to use in your trading!

      I see you’ve subscribed to my blog! Welcome!! I look forward to seeing how you go;-) stay in touch!

      Cheers
      Dean

  2. Hi, I do think this is an excellent site. I stumbled upon it 😉 I
    am going to revisit once again since i have saved as a favorite it.
    Money and freedom is the best way to change, may you be
    rich and continue to guide other people.

    • Dean

      November 13, 2014 at 1:52 am

      Thank-you Michael, those are some kind words you have bestowed upon me. I look forward to keeping in contact with you. All the best!

  3. Hello Dean, I found this post to be very helpful and I was able to implement this strategy easily and take profit from the market. Thank you for providing such a detailed explanation with great visual aids.
    This is very important to new traders who are looking at trading on their by themselves with their own analysis. One of the biggest reasons Binary Option alliance is different from other trading sites is the fact that this site actually provides people with the necessary information to start profiting right away with binary options like I have done.
    I have many friends who are interested in this sort of investing and i will be sure to direct them to your great website;)
    Thank you Dean for all your help, God Bless

    Carl

    • Dean

      March 10, 2015 at 12:04 am

      Hi Carl, I’m Glad to see you are doing well with the techniques and strategies available on this site.The Double Profit Method by Binary Option Alliance is fast becoming the preferred choice of strategy for binary option traders looking to capitalize on the right market conditions and double profit.

      Thank you for you wonderful words of encouragement, Binary Option alliance will continue to bring you the latest in trading innovations, tips and techniques for profiting in the binary options Arena;)
      Cheers
      Dean

  4. Thanks for sharing your double profit strategy. I really appreciate your efforts in breaking it down and I am looking forward to learning the ladder option break strategy next.
    Thank you once again Dean, you have helped me out so much. God Bless you.

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