The Binary

Parabola

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RISK DISCLOSURE STATEMENT

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Hypothetical performance results have many natural limitations, some of which
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or is likely to achieve profits or losses similar to those shown. In fact, there
are frequently sharp differences between hypothetical performance results and
actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are

generally prepared with the benefit of hindsight. In addition, hypothetical
trading does not involve financial risk and no hypothetical trading record can
completely account for the impact of financial risk in actual trading. For
example, the ability to withstand losses or to adhere to a particular trading
program in spite of trading losses, are material points which can also adversely
affect trading results.
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implementation of any specific trading program, which cannot be fully
accounted for in the preparation of hypothetical performance results, all of
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copied or reproduced.

TABLE OF CONTENTS

PREFACE .............................................................................................................. 5
WHAT ARE BINARY FOREX OPTIONS? .................................................................. 6
THE TRADING STRATEGY...................................................................................... 8
SETTING UP METATRADER ................................................................................... 9
THE STRATEGY RULES ........................................................................................ 12
HOW TO TRADE UP ............................................................................................. 12
HOW TO TRADE DOWN ........................................................................................ 13
TRADING EXAMPLES ......................................................................................... 14
TIPS FOR TRADING ............................................................................................ 19
MONEY MANAGEMENT..................................................................................... 20
FINAL THOUGHTS .............................................................................................. 22

The Binary Parabola

Preface

PREFACE

This objective of this e-book is to help dispel rumors and general

misinformation currently found on the Internet regarding Binary Options.
The system described is the result of solid testing plus a lot of trial and error.
It is not intended to be a history lesson on trading or the currency markets.
Neither will it describe what specific currency symbols mean or how to
calculate the value of pips - that information is not relevant to trading Binary
Options but, if those subjects interest you then all the knowledge you could
possibly wish for is WIDELY available on the internet - all just a simple
Google search away.
What you WILL find in this e-book are the essential things you need to know
to make a consistent, daily income... and, truthfully, what else do you really
need?
So please read the content of this e-book carefully - take the information
on board, analyze it and use it to your advantage.

The Binary Parabola

What Are Binary Forex Options?

WHAT ARE BINARY FOREX OPTIONS?

Binary Forex options are very similar to stock and commodity futures
options:
1)
2)
3)
4)
5)
They

You pick an instrument/symbol

You pick a direction (up/down)
You pick an expiry time
You pay a premium
They expire in the money (you win), or
expire out of the money (you lose)

However, there are some subtle differences between regular and

Binary Options:
1)
2)

You decide the premium

Your in the money return is agreed before proceeding

The main advantages of Binary Options over normal trading (Forex,

stocks, commodity futures, etc.) are:
a)
you only need to be correct regarding direction the
distance that price moves in your favor is irrelevant up is up
and down is down it does not matter whether you are correct
by 100 pips or 0.1 pips
b)
your risk (the premium) and reward (the payout an
agreed percentage of the premium) are both fixed and known in
advance
To put this into context, assume that you are watching a specific
currency pair i.e. EUR/USD, and feel that the value of that pair is
about to fall.
You decide to consider a 15 minute expiry, $20 "down trade" and are
offered an 80% return.

The Binary Parabola

What Are Binary Forex Options?

You accept the offer which means there are now two possible
outcomes:
1. When the option expires (after 15 minutes), your prediction was
correct and you receive $36 (your original $20 premium + $16...
the 80% return stated)
OR
2. Your prediction was wrong and you get nothing i.e. you lost your
$20 premium
hence the term Binary Options two possible outcomes!
You are either correct (making a gain), or incorrect (losing the
premium paid).
The important point to remember is that right is right and wrong is
wrong!
What does that mean? Simple - if you take an "up trade" then price
only needs to be above your entry price when the option expires to
receive the full return (70%/75%/80%/85%, etc. offered)... it does
not matter how far above.
This is very different from Forex trading where your return is relative
to how far price moves in your favor.

The Binary Parabola

The Trading Strategy

THE TRADING STRATEGY

Ok... so now to the heart of the matter.

This is where the mystery ends and you learn how to make an ALMOST
guaranteed daily return by trading binary options.
With all of the hocus-pocus and tales of secret methods, angry floor
traders, Russian rocket scientists, etc. that proliferate, you will probably
be stunned to discover that you only need the simplest of financial
indicators and some very basic mathematics to succeed as a Binary Options
trader!
And the secret is (drum roll)
Parabolic Stop and Reverse (widely known as the PSAR indicator)
Shocked? Disappointed? well, that is life!
As you will eventually learn, the simplest of approaches are often far more
successful than the complex ones.

All you need to trade this system (other than a Binary Options account)
is a copy of the MetaTrader 4 trading platform to provide you with
signals, and you can obtain that for free by requesting a demo account
here: https://www.tallinex.com/open-account/
So, to work

The Binary Parabola

Setting Up MetaTrader

SETTING UP METATRADER

After installing your MetaTrader 4 platform, open the application and you
will see some default charts.
To avoid clutter, delete those default charts by clicking the red [X] in the
top-right of each chart window.

Next, click the New chart button

and select EURUSDecn from the talFOREX sub-group.

When the chart opens, click M1 in the tool bar to switch the chart to
the 1-minute timeframe:

The Binary Parabola

Setting Up MetaTrader

You should then click the Candle view button and also the Magnify
button once or twice to make the chart more readable:

If all is well, your chart should look like this:

If you find the grid distracting then press Ctrl-G on your keyboard to
make the chart look like this:

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The Binary Parabola

Setting Up MetaTrader

Finally, expand the Indicators list in the Navigator panel by clicking the
little [+] to the left of Indicators

and scroll down to find Parabolic SAR.

When you find it, right-click the name with your mouse and select
Attach to Chart from the context menu that appears and your chart
will look like this:

and that is all you need to trade this system!

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The Binary Parabola

The Strategy Rules

THE STRATEGY RULES

There are only two directions you can trade up and down.
These are known as up trades (or CALL options) and down trades (or
PUT options).

How to trade UP
Wait until a candle closes and the green PSAR dot has switched from being
above the candles to below these are trigger candles.
Several up trade trigger candles are shown below:

The rule is simple once a trigger candle has formed and the body of that
candle is black, open a 60-second up trade in your Binary Options platform.

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The Binary Parabola

The Strategy Rules

IMPORTANT: You *must* wait until the trigger candle has closed and the
next candle has started drawing before taking your Binary Options trade as
the PSAR indicator is based on closed candle prices.

How to trade DOWN

The rules for a down trade are simply the reverse of the up trade rules.
Wait until a candle closes and the green PSAR dot has switched from being
below the candles to above these are trigger candles.
Several down trade trigger candles are shown below:

Once a trigger candle has formed and the body of that candle is white, open
a 60-second down trade in your Binary Options platform.
IMPORTANT: You *must* wait until the trigger candle has closed and the
next candle has started drawing before taking your Binary Options trade as
the PSAR indicator is based on closed candle prices.

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The Binary Parabola

Trading Examples

TRADING EXAMPLES

As you will soon realize, this strategy offers a vast number of trading
opportunities each day - typically 100+ trigger candles on EUR/USD alone!
We will now look at those example triggers and see how things panned out

1)
PSAR above + white body = DOWN trigger
Result: Lose
2)
PSAR below + black body = UP trigger
Result: WIN
3)
PSAR above + white body = DOWN trigger
Result: WIN
4)
PSAR below + white body = Invalid trigger
Result: No trade

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The Binary Parabola

Trading Examples

5)
PSAR above + black body = Invalid trigger
Result: No trade
6)
PSAR below + black body = UP trigger
Result: WIN
7)
PSAR above + white body = DOWN trigger
Result: WIN
8)
PSAR below + black body = UP trigger
Result: WIN
9)
PSAR above + white body = DOWN trigger
Result: WIN

Starting with a $200 account and trading $5 per time with an 80% trade
payout would have resulted in the following:
$-5 + $4 + $4 + $4 + $4 + $4 + $4 = $19 gain in 90 minutes
Obviously, you could trade larger and make a lot more, but the point here is
to show how successful the strategy can be.
But you do not just have to trade static amounts you can also implement a
recovery mechanism in the event of a losing trade (or 3).
Consider this scenario (that preceded and runs into the examples above)

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The Binary Parabola

Trading Examples

1)
PSAR above + white body = DOWN trigger
Result: Lose
2)
PSAR below + black body = UP trigger
Result: Lose
3)
PSAR above + black body = Invalid trigger
Result: No trade
4)
PSAR below + black body = UP trigger
Result: WIN
5)
PSAR above + white body = DOWN trigger
Result: WIN
6)
PSAR below + black body = UP trigger
Result: Draw assume lose
7)
PSAR above + white body = DOWN trigger
Result: Lose
8)
PSAR below + black body = UP trigger
Result: WIN

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The Binary Parabola

Trading Examples

So what if you had traded that time period with that same $200 starting
account and trading $5 per time again with that 80% trade payout?
$-5 + $-5 + $4 + $4 + $-5 + $-5 + $4 = $8 loss in the same 90 minute
span.
So what if there was a better way? One that allowed you to mitigate losses
Luckily, there is!
The method is known as progressive staking and, though often maligned,
can be an excellent approach if used sensibly.
The concept behind progressive staking is to increase the trade size after a
losing trade with the objective of either breaking-even, making the intended
profit or nullifying the loss.
To use the break-even approach, with an 80% expected gain, trade sizes
following each loss would be as follows:
Initial trade $5
After 1 loss, trade $7
After 2 losses, trade $15
After 3 losses, trade $34
After 4 losses, trade $77
The first winning trade would then recoup all of the accumulated losses.
Using the example above, the results would be:
$-5 + $-7 + $12 + $4 + $-5 + $-7 + $12 = $4 (rather than $-8)

To use the initial-profit approach, trade sizes following each loss would be
as follows:

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The Binary Parabola

Trading Examples

Initial trade $5
After 1 loss, trade $13
After 2 losses, trade $29
After 3 losses, trade $65
After 4 losses, trade $147
The first winning trade would then recoup all of the accumulated losses and
bank the profit expected from the initial trade.
Using the example above, the results would be:
$-5 + $-13 + $23 + $4 + $-5 + $-13 + $23 = $14 (rather than $-8)
Finally, to use the full-profit approach, trade sizes following each loss would
be as follows:
Initial trade $5
After 1 loss, trade $18
After 2 losses, trade $53
After 3 losses, trade $138
After 4 losses, trade $336
The first winning trade would then recoup all of the accumulated losses and
bank the profit expected from the initial trade for each of the losing trades.
Using the example above, the results would be:
$-5 + $-13 + $28 + $4 + $-5 + $-13 + $28 = $24 (rather than $-8)
To simplify using the above methods, a spreadsheet to calculate the
sequences in provided.
As you will see from the spreadsheet, the break-even approach is a much
safer solution to staying in the game, but everyone will have their own
attitude to risk so all three methods are included.

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The Binary Parabola

Tips For Trading

TIPS FOR TRADING

When trading, have MetaTrader open with the chart of your preferred
currency pair and have your browser showing the 'Trade' page of your Binary
Options account.
The time in the Market Watch window of MetaTrader should be quite close to
the time in your Binary Options account, but do not be overly concerned if
there is a difference of a few seconds.
Select the 60-second option for your preferred currency pair (EURUSD is a
good general choice).
Enter the amount you wish to trade.
Wait for a trigger candle to suggest whether price should go UP or DOWN.
Place an "up trade" or "down trade" as appropriate.
Could things get any easier?
Details about funding, etc. are explained on the brokerage FAQ page, but
they will have live-chat staff to assist you.

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The Binary Parabola

Money Management

MONEY MANAGEMENT

There is not much to say here except to go slow and steady.

Regardless of how much you deposit, never bet the farm on one trade!
Instead, stick with a sensible number that allows you to withstand a run
of losing trades and also allows you to use the progressive staking
systems comfortably if you want to - that way, you can stay in the game
and profit (unlike the majority of Binary Options traders!)
A good rule of thumb is to limit your trades to 2% of your account
balance.
If you open your account with $250, that would equate to $5 per initial
trade and, with 100+ potential trades showing up each day, it is quite
realistic to expect 10 net wins - especially if the progressive staking
methods were used.
On that basis (and assuming an 80% payout), this is what you could
achieve from this strategy over 20 trading days (one calendar month):
Day
1
2
3
4
5

Balance
$250
$290
$338
$394
$458

Trade
$5
$6
$7
$8
$10

Profit
$40
$48
$56
$64
$80

Week 1 gain: $288

6
$538
$11
7
$626
$13
8
$730
$15
9
$850
$17
10
$986
$20
Week 2 gain: $608

$88
$104
$120
$136
$160

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The Binary Parabola

11
12
13
14
15

$1146
$1330
$1546
$1794
$2082

Money Management

$23
$27
$31
$36
$42

$184
$216
$248
$288
$336

Week 3 gain: $1272

16
17
18
19
20

$2418
$2810
$3266
$3794
$4402

$49
$57
$66
$76
$89

$392
$456
$528
$608
$712

Week 4 gain: $2696

21

$5114

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The Binary Parabola

Final Thoughts

FINAL THOUGHTS

If you have read this far then it shows that you are serious about making
money and changing the life you are currently living.
With that in mind, please take time to master this trading technique
because it can serve you for the rest of your life.
Get used to waking up each day and knowing that you have multiple profit
opportunities ahead of you.
The laws of this trading strategy WILL NEVER CHANGE - They are
mathematical... scientific... they will remain constant, regardless of what
happens in the markets.
This is the most perfect "side business" you could ever start - one that
hands you super-sized gains in minimal time.
Like any business, you will have losses, but they will pale in comparison to
the many winning trades you will enjoy... and the progressive staking
systems can effectively nullify them so they hardly even cause a bump on
your road to financial security.
Good luck in your trading career - remember to reward yourself with the
independence and freedom that accompanies success.

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