Money Management Strategies
Low risk strategy
A low risk binary options money management strategy is for those who do not wish to take high risks. This will result in fewer profits but generally few or no losses at all.
Number of wins & number of losses – Stop trading after 10 wins – Stop trading after 3 losses
Percentage of losses – Stop trading after 8% losses
Amount of wins & amount of losses – Stop trading after $50 profits – Stop trading after $20 losses
Winning ratio – Stop trading if the winning ratio becomes lower than 80%
Number of trades – Stop after 10 trades
Medium risk strategy
The medium risk money management strategy is for those who would like to earn some extra money but still aren’t 100% sure if they want to go all in.
Number of wins & number of losses – Stop after 30 wins – Stop after 8 losses
Percentage of losses – Stop after losing 15% of your contracts
Amount of wins & amount of losses– Stop after winning $150 in a session– Stop after losing $50
Winning ratio – Stop if your winning ratio becomes less than 75%
Number of trades – Stop after 50 trades
High risk strategy
The high risk strategy is for those who are not afraid to lose large sums of money with the prospect of making huge profits fast. This risk assessment binary options strategy is only recommended to experts.
In this case, we’ll be allowing for a bit more flexibility and have defined the limits a bit loose (defined by the + sign).
Number of wins & number of losses – Stop after 100+ wins – Stop after 30 losses
Percentage of losses– Stop if you lose 25% of your trades
Amount of wins & amount of losses – You are already an expert, so you do not need a maximum win amount limit. – However, stop if you lose more than $100 in a session
Winning ratio– Stop if your winning ratio drops below 65%.
Number of trades– You can trade as much as you want, however in this case choose another limit from the ones mentioned above.