Friday, January 20, 2017

Binary Trade Analysis: USDCAD Wedge Pattern

  • Trading Type: Rise/Fall
  • Trading Instrument: USDCAD (US Session)
  • Trade Duration: 5 Minutes
  • Chart Time Frame: 1 Minute
  • Indicator Used: None, Price Action & Pattern, Bullish Wedge

USDCAD was in bullish trend & then the wedge pattern formed. So we enter Rise for 5 Minutes.

Thursday, January 19, 2017

How to Hedge a Binary Trade Position To Protect Capital

Hedging strategy works for Binary Options too. Here in this post I will share details how to protect your capital using binary option hedging. This strategy works same way for spot trading too, in spot trading it called "locking position".

When Hedging is required:
Suppose you enter a buy Rise trade for 15 Minutes, you saw market moved far away from your favorable position, also "SELL at Market" option is Not Available. Then for such case, you can protect your capital with hedging position. 

Below is the 1 Minute Bet duration trade example with hedging possibilities.

Click to view in large

For Higher Trade it has 78.6% Return if trade is a winner. 
For Lower Trade it has 96.1% Return if trade is a winner. 

Now, If you open two trades, on both direction. If Higher trade wins then you will loose:
100% for higher Trade & earn 96.1% for lower trade winner, that means you will lose only 3.9% instead of losing the whole value.

If Higher trade wins & Lower Trade is a looser, then you will lose, 21.6% instead of whole 100% value.

Remember Hedging is used only to lock your losses. Instead of losing whole 100% you will lose small value for wrong trade. 

Caution Point:
Do not use hedging for smaller time bet, use this method of longer time period, why? simply because if market doesn't moves in any direction stays in range then you will lose money on both trade. You will lose 200%. So be careful about it.

How To Get NSE BSE EOD Stock Data On Metatrader 4

Using a Script Developed by Forexfactory Member (Original thread) we can get the EOD (End of the day ) Data from youtube & load it in Metatrader 4 for offline chart of Daily, Weekly & Monthly.
This is a great help for Positional Traders. In This blog I will share step by step process to do it flawlessly.

First Download the script from Here [Dropbox]
Then Extract all script files & load it MT4 Terminal (From MT4 Terminal > Open Data Folder > MQL4 > Scripts > Paste all files here & Restart MT4 Terminal).

Now open the script properties
Add the stock quote like following:

Click to View in Large

For NSE Data of TCS Quote is like "TCS.NS"
For BSE Data of TCS Quote is like "TCS.BO"

Once you added the script, it will automatically create an off line chart for that instrument.  Open Offline chart list, you will find your stock chart there.

This script download data from Yahoo finance. So we are going to use yahoo finance stock quotes. It not just works for NSE or BSE but for any world market. Just use the right stock quote from yahoo finance.