Binary Options Workbook

Welcome to Section 1 of your workbook for Binary Options. At the beginning of each section
the instructor provides core goals for you the learner to achieve out of this specific section. At
the end of this workbook for every section you will be asked to answer/respond to the goals.
Additionally, you will be asked to create any other goals you felt you achieved through this
section and how. This is designed to promote higher level of thinking by assessing your
knowledge, comprehension, and ability to apply and evaluate your new-found knowledge and
skills.

Section 1 What are Binary Options

Goals of this section:

Define a binary option.

Identify products you can trade.

Explain time frames you can trade.

Understand risk/ reward of binary options.

What are examples of what you can trade with these four product groups?

Futures Commodities Currencies Events

Time frames for Futures notes:

How can you apply the information about time frames for Futures to your trading?

Time frames for Commodities notes:

How can you apply the information about time frames for Commodities to your trading?

Time frames for Forex notes:

How can you apply the information about time frames for Forex to your trading?

Time frames for Events notes:

How can you apply the information about time frames for Events to your trading?
Follow along with Max and fill in the following table for Long Contract (USD/JPY 110.50)
Trading (time)
Contract ($)
Loss
Profit

Follow along with Max and fill in the following table for Short Contract (USD/JPY 110.50)
Trading (time)
Contract ($)
Loss
Profit

Now is your chance to answer the goals that Max outlined for you at the beginning of the
section and create your own.

Define a binary option:

Identify products you can trade:

Explain time frames you can trade:

Understand risk/ reward of binary options:

Your goals:
Section 2: Pricing of Binary Options

Welcome to Section 2 of your workbook for Binary Options. At the beginning of each section
the instructor provides core goals for you the learner to achieve out of this specific section. At
the end of this workbook for every section you will be asked to answer/respond to the goals.
Additionally, you will be asked to create any other goals you felt you achieved through this
section and how. This is designed to promote higher level of thinking by assessing your
knowledge, comprehension, and ability to apply and evaluate your new-found knowledge and
skills.

Goals for Pricing of Binary Options:

Define what an options price implies

Explain time decay

Simplify a strike price and a bid/ask spread.

Follow along with Max and fill in the following table for Strike Price (ITM):
Trading
Contract ($)
Midpoint bid/ask
Implied probability

Time Decay notes:

Why is it difficult to determine the time decay of a Binary Option?

How does understanding time decay impact the extrinsic premium in your option?
Contract detail notes:

Now is your chance to answer the goals that Max outlined for you at the beginning of the
section and create your own.

Goals for Pricing of Binary Options:

Define what an options price implies:

Explain time decay:

Simplify a strike price and a bid/ask spread:

Your goals:
Section 3: Creating a System for Binary Options

Welcome to Section 3 of your workbook for Binary Options. At the beginning of each section
the instructor provides core goals for you the learner to achieve out of this specific section. At
the end of this workbook for every section you will be asked to answer/respond to the goals.
Additionally, you will be asked to create any other goals you felt you achieved through this
section and how. This is designed to promote higher level of thinking by assessing your
knowledge, comprehension, and ability to apply and evaluate your new-found knowledge and
skills.

Section 3 Goals:

Find the right strategy for you.

Implement a particular strategy.

Make use of a standard trade size.

Stick to your strategy.

Creating a Strategy notes:

Number the tips provided for creating a strategy on what you understand to be the most useful
for your trading methods.

Make notes of mistakes Identify your experience

Practice makes perfect Trade what you know

Focus on your strengths Test and adjust your strategy

Explain why you selected this specific order.

Trade Using Your Strategy notes:

Number the most helpful tips on what the next step is after you created your trading strategy
that were most applicable to you:

Take notes

Test out multiple time frames

Use a set of technical, patterns and signals

Explain why you selected this specific order.

Risk Management notes:

Stick to Your Strategy notes:

Now is your chance to answer the goals that Max outlined for you at the beginning of the
section and create your own.

Find the right strategy for you: Write the strategy that you believes works best for you.

Implement a particular strategy: How would you begin this?

Make use of a standard trade size: How are you going to achieve this?

Stick to your strategy: Why is this a useful tip?

Your goals:
Section 4: Money Management for Binary Options

Welcome to Section 4 of your workbook for Binary Options. At the beginning of each section
the instructor provides core goals for you the learner to achieve out of this specific section. At
the end of this workbook for every section you will be asked to answer/respond to the goals.
Additionally, you will be asked to create any other goals you felt you achieved through this
section and how. This is designed to promote higher level of thinking by assessing your
knowledge, comprehension, and ability to apply and evaluate your new-found knowledge and
skills.

Section 4 Goals:

Examine possible mental mistakes

Evaluate my early mistakes

Implement a position sizing strategy

Mental Mistakes notes:

Of the 3 common mental mistakes that Max provided which one have you accidentally done
already or believe could happen to you? Why?

Position Sizing notes:

Follow along with Max and fill in the following table for Position Sizing:

Portfolio size
Number of contracts
Portfolio Risk % (MAX)
Total investment risk ($)

Follow along with Max and fill in the following table for Position Sizing:

Portfolio size
Number of contracts
Portfolio Risk % (MAX)
Total investment risk ($)

Analyze the mistakes that Max made early when he first started trading and fill in the blank
next to it what he should have done instead.

Max’s Mistakes Your Revision

Increasing trade size to make up a loss

Trading when I was not comfortable

Losing confidence in myself and my strategy

Now is your chance to answer the goals that Max outlined for you at the beginning of the
section and create your own.

Examine possible mental mistakes:

Evaluate my early mistakes:

Implement a position sizing strategy:

Your goals:
Section 5: Factors to Consider in Binary Options

Welcome to Section 5 of your workbook for Binary Options. At the beginning of each section
the instructor provides core goals for you the learner to achieve out of this specific section. At
the end of this workbook for every section you will be asked to answer/respond to the goals.
Additionally, you will be asked to create any other goals you felt you achieved through this
section and how. This is designed to promote higher level of thinking by assessing your
knowledge, comprehension, and ability to apply and evaluate your new-found knowledge and
skills.

Section 5 goals:

Determine the volatility of a timeframe

Choose the right timeframe

Implement your strategy within the right timeframe

Volatility of Timeframe notes:

Identify an example of how certain hours can be more volatile than others.

Name the factors that could impact your Futures and Forex price movement. How can
incorporating these factors allow you to be more successful in the long run?
When you begin to implement your strategy did you find it worked better to use micro
movements or general trends? Why did you choose this?

Put an X in the box whether you would use micro movements or general trends for the product.
Product Micro Movements General Trends
Futures
Forex

What is your reason for selecting this strategy for Futures and Forex?

Understand Your Product notes:

Now is your chance to answer the goals that Max outlined for you at the beginning of the
section and create your own.

Determine the volatility of a timeframe:

Choose the right timeframe for you:

Implement your strategy within the right timeframe: Map out how it will take place

Your goals:
Section 6 Using Technical Indicators in Binary Options

Welcome to Section 6 of your workbook for Binary Options. At the beginning of each section
the instructor provides core goals for you the learner to achieve out of this specific section. At
the end of this workbook for every section you will be asked to answer/respond to the goals.
Additionally, you will be asked to create any other goals you felt you achieved through this
section and how. This is designed to promote higher level of thinking by assessing your
knowledge, comprehension, and ability to apply and evaluate your new-found knowledge and
skills.

Section 6 Goals:

Use MACD

Examine Bollinger Bands and ADX Indicators

Define support/resistance and how to use this

Using MACD notes:

Identify the following key concepts from the first example that Max walks through:
 What does MACD Reversal tell you?

 What kind of opportunities does Negative MACD Reversal signify? Why?

 What are some other key concepts that Max identifies?

Identify the following key concept from the second example that Max walks through:
 What is significant from this example?

In our own words describe why the MACD is a very powerful technical indicator?

ADX Indicator Notes:

Identify the following key concepts from the example chart on SPY=SPX that Max walks
through:
 Is there any volatility? If so, what does it mean?

 What is the trend? What predictions can you make based on the trend?
Bollinger Bands Notes:

Identify the following key concepts from the example that Max walks through:
 Are there any price reversals? How were you able to determine if there was one or not?

 What does a tighter range mean?

Support and Resistance Notes:

Identify the following key concepts from the example that Max walks through:
 What are some reasons that price was unable to break a strike price?

 How much did you make on the winning and losing trades?
Now is your chance to answer the goals that Max outlined for you at the beginning of the
section and create your own.

Use MACD: How will you use MACD?

Examine Bollinger Bands and ADX Indicator: How will you use Bollinger Bands and ADX
Indicators?

Define support/resistance and how to use this

Your goals:
Section 7 Technical Analysis in Binary Options

Welcome to Section 7 of your workbook for Binary Options. At the beginning of each section
the instructor provides core goals for you the learner to achieve out of this specific section. At
the end of this workbook for every section you will be asked to answer/respond to the goals.
Additionally, you will be asked to create any other goals you felt you achieved through this
section and how. This is designed to promote higher level of thinking by assessing your
knowledge, comprehension, and ability to apply and evaluate your new-found knowledge and
skills.

Section 7 goals:

Use candlestick patterns

Explain doji candles

Analyze harami candles

Identify engulfing candlestick patterns

Using Candlestick Patterns Notes:

Describe and draw each Doji candlestick:

Gravestone Doji Dragonfly Doji
Harami Candle Notes and drawing of candlestick:

Engulfing Candle Notes:

Now is your chance to answer the goals that Max outlined for you at the beginning of the
section and create your own.

Use candlestick patterns: What is the purpose of candlestick patterns?

Explain doji candles:

Analyze harami candles:

Identify engulfing candlestick patterns:

Your goals:
Section 8 My Trading Strategy for Binary Options

Welcome to Section 8 of your workbook for Binary Options. At the beginning of each section
the instructor provides core goals for you the learner to achieve out of this specific section. At
the end of this workbook for every section you will be asked to answer/respond to the goals.
Additionally, you will be asked to create any other goals you felt you achieved through this
section and how. This is designed to promote higher level of thinking by assessing your
knowledge, comprehension, and ability to apply and evaluate your new-found knowledge and
skills.

Section 8 goals:

Identify the products I trade

Make use of my U.S. futures after hours strategy

Analyze the technical strategy I use during trading

Why does Max use S&P 500 for Futures? Would you use this for yourself? Why or why not?

Why does Max specifically trade the USD/JPY, GBP/USD, AUD/USD, EUR/USD for currencies?

Why does Max use non farm payrolls for events? Would you apply this to your trading strategy?
Why or why not?

Identify the timeframe strategies that Max uses for Futures, Currencies, and Events. Why did he
select these specifics timeframes?
US Futures Strategy Notes:

What is the main indicator that Max primarily watches? Why is this his preferred technical
indicator?

Why does Max look for significant candlestick patterns?

What does the ADX indicator tell Max about his trade?

What do Bollinger Bands show Max?

Why does Max look for long entries to trade on?

Why does Max prefer to sell on the short entries?

Now is your chance to answer the goals that Max outlined for you at the beginning of the
section and create your own.

Identify the products I trade:

Make use of my U.S. futures after hours strategy:

Analyze the technical strategy I use during trading:

Your goals: