This article is intended for those who try or trade binary options, but the deposit does not grow and the profit is not visible. After reading the article, you will learn how to correctly evaluate and analyze your results, determine the strengths and weaknesses of your trades. If you have changed several brokers, and your results have not changed, most likely, you do not know how to work on mistakes.
The purpose of the analysis of own trades
Binary options trading is based on the ratio of risks to earnings. To determine earnings on trading, a trader must determine how much he earned and what risks he took. How many bets were made in the plus and how many in the negative. After receiving all the reports, you can conclude how you can earn and where you can earn more.
When planning trades or a strategy, a trader is obliged to do a test that will show the result. By making a withdrawal, binary options traders can improve and correct their trades. The main purpose of binary options trading analysis is to correct and improve the results.
How to understand if your binary strategy is working
Binary options traders often confuse the definition of a “winning strategy” or a “profitable binary options strategy “. If your balance has increased by $1000 after trading, this may be good. But this may not be the best option for your trades. After all, if you had used a different strategy, you could have earned $2000 or more. The value of earnings is relative. Profit should be measured not by the size of the amount, but by the percentage of change in the deposit. In order to understand whether your strategy works, you will need time. By using several types of trades, and calculating the exact deposit for options trading, you can improve the result. You will be able to work or not the strategy after you analyze the trading results.
[sc:Bot]
How to make reports
For analysis, you need reports. It is not possible to keep so many numbers and data in mind. It is better to use Excel. In which data for each type of trading will be entered. Before making a conclusion, you need to determine which parameters will show you the effectiveness of the strategy or your trades in general.
Usually, the following data is entered into the report: The name of the strategy, the number of transactions, the result of transactions, the asset, the number of positive and negative trades, the indicators used or the decision-making formula. After that, interest is paid. For example, the number of positive trades is reciprocal to the total amount of trades. This percentage will show the effectiveness of the strategy. If you got 80%, for example, you will be able to calculate with what minimum deposit you can trade and at what minimum rates. After all, you should have enough deposit money if you have 20% of negative trades at the beginning.
A report on your binary options trades should include all the data. Once you have entered data on several binary options strategies or on one strategy with different changes, you can choose the best option. Which will bring you the highest income.
What conclusions can be drawn by reading the reports
After the work done, you can make a decision on your binary trade, strategy or asset. After reading your report, you can get the following conclusions: Which strategy works best
- Which variant of the binary strategy will bring more profit
- Which assets are more predictable
- The effectiveness of the binary strategy
- Identify the best indicators
- Calculate the risks of binary trading
- Calculate possible losses both on the auction and on the transaction
- Determine the working deposit
- Determine the reserve deposit
- Find out the optimal time for trading
- Making such conclusions, binary options robots or automated trading systems are created.
- When you see the performance of binary signals or a robot, they are made and corrected according to the same parameters.
How to fix mistakes and get consistent results
In order to improve performance, you need to determine those moments that bring you losses. To do this, when testing a strategy or trading, look for false signals. Namely, the reasons why you entered the deal. In this way, you will determine what prevented you from getting the desired result. Always keep notes, plan, and draw conclusions.
Many traders blame brokers for their failures, although in fact they continue to trade on non-working binary options strategies. Or they do not calculate the risks and deposit correctly.
Inference:
Without correcting their results and learning from mistakes, traders blame brokers, the Internet and many other factors. Although, in fact, they didn’t even check if they opened the trade correctly. By making the right conclusions, traders become professionals.
The main work of professionals is to improve and find mistakes, while amateurs simply open deals or change strategies. Without understanding what works and what doesn’t.
Tagged with: Binary Options Trading
