Binary Options

Zero Risk Strategy

The complete money making guide

Rajat Kapoor
Binary Options
Binary Options is the newest form of trading which has the potential to reap huge profits in very
short period of time and with very low investment. This is the reason why everyone has been
fascinated and attracted towards binary options. It is considered an easy form of trading where you
just have to predict whether the market will move up or down after a certain amount of time. Those
who thought this way about binary options eventually have faced a lot of losses after a few lucky
shots.

Without the proper know how of the market and trading, you may win occasionally, but overall you
will only face losses. Binary Options is not simply guessing, whether the market will be up or down
after certain time. There are important questions which need to be asked and analyzed

Up or down???

Whats the trend???

Are there chances of trend reversal???

What should be the expiry time???

You cannot just guess all these answers and expect to get all of them right at least 60% of the time.
So this requires you to understand the market if you really have to profit consistently from binary
options. And thus comes a huge risk for the trading virgins out there.

Binary Options Zero Risk Strategy

Binary Options Zero Risk Strategy is thus designed in a way so as to keep the simplicity of binary
options for newbie, and at the same time reducing the risk percentage to almost zero.

Thus, as opposed to the regular strategies which require you to understand the technicalities in
order to reduce risk, this strategy is a compromise between the technicalities and the risk. Thus you
need to understand very little technical stuff about the markets in order to earn huge profits without
any risk.

With this strategy, the probability of getting all the above questions answered correctly increases
and you profit from over 95% of your trades.

The Potential
Even if this strategy reduces the risk factor, it still keeps the overall profit potential associated with
binary options. Considering a 10% profit on each trading day, if you start from the initial
investment of $100, here are the profit levels that you will reach:

After 10 days $200

After 20 days $400

After 30 days $800

After 40 days $1600

After 50 days $3200

After 60 days $6400

If you consider 20 trading days in a month, you will have $6400 after 3 months. And once you
reach 5000 mark, you just have to double it every 10 days to make a handsome $10000 per
month easily with very little work and with ZERO RISK.

All you will ever invest is $100. In fact, you can invest as little as $5 and keep doubling it every
10 days with this strategy.

And I have assumed that one will be working part time only.

The Prerequisites
In order to use this strategy, you need a trader account with binary.com. Binary.com, a company of
Regent Markets, is a very old and highly respectable broker. It is important to open an account
with Binary.com as they have a unique feature which allows you to select your own barrier and
expiry time when trading Touch options. The returns are adjusted based on the current market
value, the selected barrier and the expiry time. This feature is not offered by any other broker and
this is exactly the feature that we require for this strategy.

Another great feature offered by Binary.com is that they offer you to create a demo account
without having to invest even a single penny. Once you are good to go, you can create a real account
and deposit the real money. The minimum deposit amount is just 5$ and the minimum trade
investment is just 1$.

But, for this strategy, it is recommended to deposit 100$ in the account.

Binary.com offers 4 types of trades:

Rise/Fall: The usual binary option trades where you have to predict whether the market will be up or
down from the current level at the expiry time.

High/Low: This is similar to Rise/Fall Bets except you yourself get to select the barrier instead of the
default current level. The return profit percentage is adjusted according to the selected barrier and
expiry time.

Touch/No Touch: Here, you have to predict whether the market will touch or not touch the selected
barrier before the expiry time. Again, you yourself get to select the barrier. The return profit
percentage is adjusted according to the selected barrier and expiry time.

In/Out: This has 2 variations:

Stays Between/Goes Outside: Predict whether the market will remain between or go outside the
selected Low and High Barriers before the expiry time.

End Between/Outside: Predict whether the market will be between or outside the selected Low and
High Barriers at the expiry time.

For my strategy, I will be concentrating on Touch Options.

Binary.com has six types of assets Forex, Stocks, Sectors, Commodities, Indices and Random
Indices. Random Indices are their own version of indices based on randomly generated numbers.
Although, they can be profitable and they are available 24 X 7, they are highly unpredictable and I
dont really prefer to use them for my strategy.

Touch Options are not available for Stocks and Sectors. For Indices, the minimum expiry time is 7
days, so not useful for my strategy.

For Commodities, the minimum expiry time for Touch options is 15 minutes. For Forex, the minimum
expiry time varies from 15 minutes for some Forex pairs to 1 day for others. Expiry time of 1 day
means that if I place a trade today, it will expire tomorrow at 23:59:59 GMT.

This is the reason why I prefer to trade with Forex because my strategy concentrates on daily
targets.

Another important feature of Binary.com is the ability to Sell the trade prematurely. So if I have
made a trade on EUR/USD with expiry time of 1 day, I will be able to Sell it before today end i.e.
23:59:59 GMT. The rate at which the trade is sold is displayed and keeps on changing according to
the current state of the trade.
Binary Options Zero Risk Strategy Explained
Binary Options Zero Risk Strategy involves trading the Touch Options on Binary.com with the
Touch Targets close enough to be reached easily within the expiry time, but still yielding a good
profit percentage. It works on daily target of 10%. If you have more time, you can go for 20% and if
you want to be more cautious, you can go for 5%. (Read my last sentence very carefully, Ill come
back to it later)

Here are the steps for trading with Binary Options Zero Risk Strategy on Binary.com:

Go to Start Trading -> Touch/No Touch tab

You can select the market and it will show you the Current spot of that market. Then you can input a
barrier and duration for which you want to place a trade. The payout refers to the total amount that
you will receive along with the profit if you win the trade.

Once you hit theGET PRICES button, you will get 2 trade options on the right. In the above
example, in order to get a payout of 100$, you will have to buy the Touch trade at 61.02$ i.e. your
trade investment. That means if EUR/USD touches 1.3390 before 1 day, you will make a net profit of
38.98$ i.e. 64% profit of your invested trade amount of 61.02$.
As you make the barrier closer to the current spot, the Return percentage for Touch option
decreases. For No Touch options it goes over 500%, but that is not important to us.

You can also see the trend graph at the bottom of the page. You can select 1 hour, 6 hours, and 12
hours trend up to 365 days. The below graph shows the trend of last 6 hours. If you select the
Interactive Charts option, you can also see the more interactive candlestick chart.

Now, looking at the above graph, it is easy to predict that it will touch the barrier of 1.3330 in not
more than an hour or two from now. So if you invest 100$ in the Touch option right now, you will
make 5$ profit, absolutely risk free.
The return percentage is decided by 2 factors expiry time and the target. So expiry time of 2 days
will yield less profit for the same target as compared to the expiry time of 1 day. So if we increase
the expiry time in the above example to say 2 days, we will hardly get any returns. So if we have to
gain good profits from a trade with expiry time of 2 days, we will have to move the target further up.
And as the target moves further away, the risk grows.

Also, if we keep the expiry time as the end of the current day (as some Forex pairs offer a minimum
expiry time of 15 minutes), the profit percentage will increase, but again the risk will grow in terms
of time.

This is the reason why I prefer to trade only in Forex pairs which offer the minimum expiry time of 1
day.

As I said, when the target moves further away, the risk grows. In the above example, what if the
trend suddenly takes an opposite turn and never returns back. Ideally thats not how the market
works. But still, to eliminate the risk completely, some level of analysis is required before placing a
trade. And there comes my MAGIC STEP.
How to choose your trade THE MAGIC STEP
There are 2 things which you should consider when choosing your trade:

1. A growing trend
2. A strong indicator

In actual scenarios when trading forex, youll hardly see a strong hard hitting trend. So if you kept
waiting for some hard hitting trend youll not be able to make any profit. You dont even need a
strong trend for my strategy. You just need a subtle trend.

More than a strong trend, you need a strong indicator. Indicators are available on a site called
investing.com. Investing.com is a definitive source for tools and information relating to the financial
markets such as real-time quotes and streaming charts, up-to-date financial news, technical analysis,
brokers directory & listings, an economic calendar, and tools & calculators. The site provides in-
depth information on Currencies, Indices & Stocks, Futures and Options, Commodities, and Rates &
Bonds.

Go to investing.com. You can see the complete technical analysis of all the major forex currency pairs
on investing.com. Just select the currency pair in which you are looking to trade in.
Under the Technical tab, you can see the various Support and Resistance points for the currency for
different time scales from 5 minutes to 1 day. Also, the overall Summary is given from Strong Sell to
Strong Buy
Suppose we are looking to trade in USD/CAD. Well check for the Technical Summary of USD/CAD for all
time scales.
As we can see, the Summary for USD/CAD for all time scales is Strong Sell. Thus, USD/CAD is currently
having strong indicator. So we can trade on USD/CAD. Similarly, if some currency pair is having Strong
Buy indicator on all time scales, then we can make a trade.

For more cautious traders, one more point can be considered. When the overall summary on all time
scales is Strong Sell, check the point S1 for all time scales for Classic Series (I check only the Classic
Series for all my analysis). It should be less than the current point on all time scales.

In the above example, point S1 is higher than the current point for Daily time scale. So, more cautious
traders may opt not to trade at this point. However, if the point S1 is higher than the current point for
30 minutes, 1 hour or 5 hours time scale, it would be recommended not to trade currently.

How to find the target point

Once all the conditions are satisfied for making a trade, the next step is to select the correct target
point. This is an important step as we do not want to take too long a shot, nor do we want to reduce our
losses. So if it is Strong Sell on all the time scales, check for S1 and S2 points for 30 minutes, 1 hour and
5 hour time scales. Similarly, if it is Strong Buy on all the time scales, check for R1 and R2 points. Choose
one of the points which is around 8-12 pips from the current spot and make a Touch option trade. It will
give you 6-10% return.

More cautious traders can only look for the S1 point. Another recommendation is to keep the target level
1 pip towards the current point. So in above example, well select the target point as 1.002 i.e. point S1
on 5 hour scale. However, 1 pip towards the current point will be 1.0021. So well make a Touch trade
with target level as 1.0021.

Another point is that the Summary of 5 and 10 minutes can be ignored completely once you gain some
experience in this strategy. And once you become an expert in trading, you can ignore the daily summary
as well.
How to place and monitor your trade
Placing the trade in Binary.com is easy.

Once you have selected the market to trade on and the target barrier, just go to Start Trading
Forex Touch/No Touch tab, select the market, input the barrier and duration (in our case,
1 day), select the Payout that you want from the trade (Investment + Profit) and click on GET
PRICES button. You will get two options on the right one for buying touch option and other
for No Touch option. Click on PURCHASE button of Touch option and thats it.

Once you have made the trade, you can see it in your Portfolio.
You will see the Trade Details, your Purchase Price and the Current Market Price of your trade.
Current Market Price is decided by the current state of your trade i.e. the time left and the closeness
to the barrier amongst other factors.

After about 2-3 minutes, a Sell button will be activated for your trade.

If you have made the trade of 1 day, the Sell button will remain active till the end of current day i.e.
in above example, I made the trade on 16th September, so the Sell button will remain active till
September 16, 23:59:59 GMT. Note that the trade of 1 day made on September 16 will expire on
September 17 at 23:59:59 GMT.

Now even though we have taken all necessary careful measures while choosing our trade, we should
always be prepared for the worst case. So you should always have a Stop Loss strategy in place. By
Stop Loss, I mean here to Sell the trade early to avoid any losses. You can decide your Stop Loss
point depending on the Current Price. For example, in the above trade, which was purchased for
USD 96.09, your Stop Loss point can be USD 75. So if the Current Price reaches below USD 75, you
will Sell the trade at a loss of ~USD 20.

You can also choose a Stop Loss based on the target barrier. For example, in above scenario, if the
EUR/USD reaches 1.3350, you may Sell the trade.

The Stop Loss strategy is just a backup to avoid any huge losses. If you have carefully chosen your
trade, you will rarely have to make use of the Stop Loss strategy.
Once your Touch trade is successful, you can see a Claim button in your Portfolio against your trade.

Also notice that the Current Price is the Payout that we had selected. Once you click on the Claim
button, USD 100 will be added to the account, a profit of USD 3.91 RISK FREE.

The above trade took about 2 hours to reach the target barrier. Normally, these trades take about 2-
3 hours to complete.

This is why I had said earlier that if you have more time, you can aim for a daily target of 20% as it
will take 3-4 trades to earn 20% profit from such trades. Also, I had said that if you are more
cautious, you can select just one perfect trade a day and earn 5-10% daily.
Making it INVINCIBLE
I had devised another strategy for 60 second trades. The details of this strategy can be found here.
Basically, this strategy is built upon taking advantage of the sudden break in trend i.e. making a trade
on an asset which is following a certain trend upward or downward trend in the past few hours,
but has suddenly gone against its usual trend now. This means a sudden steep peak or valley in the
trend line, right now.

For instance, if the EUR/USD had been following a downtrend all day and suddenly it jumped up
from 1.3290 to 1.3294, we know that the price jump in just a few short minutes, will push up to a
peak and then will weaken or decline.

This is a very basic concept in forex trading and trend analysis and is the basis for almost all the
binary options trading strategies.

Now lets incorporate this strategy in our strategy of Touch Options trading. Remember we are
trading on target points of 8-10 pips. In above example, if we make a Touch trade at 1.3294 with
target point of 1.3285, we can be rest assured that the trend will decline below 1.3290 in next few
minutes and it will touch 1.3285 in not more than half an hour.

This point basically makes your trade end successfully and quickly, so that you can make more
trades. However, in this case, you will also have to be really quick with your analysis and with making
your trade as the trend can decline very quickly.

Also, it requires some level of technical expertise. So if you are a newbie, it is recommended to
ignore this point till you completely understand the concepts of trend analysis. For newbies, I have a
much easier strategy. Read on
Stretching the limits of INVINCIBILITY
Let me take an example of EUR/USD. Go to investing.com, select the EUR/USD currency pair and in
the General tab, select Historical Data. Here, you can see the Open point, Closing point and High and
Low values of EUR/USD currency pair for each day of the selected duration.

Select the data for duration of over 6 months and copy it in a spreadsheet. Now compare the Open
time for each day with the highest point of the day. Do the same with the Lowest point of the day.
The data that you get also include the Saturdays, so remove the Saturdays from the list as there is
not much movement on Saturdays.

Now if youll see the two calculated values i.e. (Highest Open Point) and (Open Point Lowest
Point) for each day, youll see that for about 75% of the days both the values are above 0.001 i.e. the
market moved 10 pips from the Open point in both directions.

What it means is if you make a trade right at the start of the day i.e. with Open point as the current
point, there is 75% chance that you will win the trade even if you have made the trade with your
eyes closed.

Now, if you look for the days when the market has not moved more than 10 pips in either direction,
you wont find any such day.

So we are left with the days when the market has moved very less i.e. less than 10 pips in one
direction. For these days, you will get a very Strong indicator as to in which direction the market is
going to move. So this makes your trade 100% secure if you make a trade close to the Opening time
of the day i.e. 00:00 GMT.
A few more points
A very important thing for any trade is to avoid the loss. If any of your trade has started losing for
you, you should have a stop loss target. Ideally it should be 20% of your investment i.e. if you have
bought a trade for 100$, then you should sell it if the market price goes below $80.

Another important point is whether to invest all your money in single trade or divide it among
multiple trades. Ideally its always better to divide your investment in multiple trades. But here, there
is an exception. If you are 110% sure about the trade, you can invest all your money on one trade.
This is because the risk is very low in this strategy. So, for example, a positive news has come in
which is making the EUR/USD go up, you can be sure of the profit with the Touch option just above
the current spot.

OK. Now I have given you the strategy, I have given you the plan, and now the execution is on you.
So what are you waiting for...? Open an account with Binary.com now and start trading RISK FREE.

Wish you a happy trading.