Double Up Strategy for Binary Option Trading
Binary Options is a popular form of trading among all kinds of traders. There is a constant demand for trading strategies and today, we will discuss about the DoubleUp strategy.
Binary Options offer traders a unique form of trading through a yes/no proposition. There are many advantages trading binary options. High profits, short trade times, easy setup, varied assets are some of the top reasons.
It is high time to trade binary options with more and more regulatory bodies taking heed of this trading instrument. Countries that have previously restricted it are now welcoming it with open hands.
You need a good reliable broker to trade binary options. They offer you a trading platform where you carry out all your trading.
This includes all the technical analysis you carry out and all the trading features that you use. Double Up strategy is one feature you can use for increased profitability.
Among the different strategies that you use in your binary options, this is one is by far the easiest and rewarding. But, there is an equal element of risk.
But firstly, let’s discuss a little bit about trading strategy in brief.
Why Do You Need a Strategy For Binary Options?
Since binary options are all-or-nothing in nature, you either win a big payout, or lose your investment. Simplicity doesn’t mean reduced risks.
That being said, having a proper strategy will ensure you don’t end up losing money. Think of having a trading strategy as a blueprint for trading success.
It lays out exactly what asset to trade and invest how much. You will know exactly when to place the trade and at what expiry time.
You will also know the risks associated with the trade and the ways to manage them. Using a proper strategy, you can read the market and predict when to enter the trade.
Analyzing trends, finding breakouts, determining the support and resistance levels, using appropriate indicators, all fall under strategy creation.
We all know the 80/20 rule in binary options. It is the fact that only 20% of the traders make money with binary options while the rest lose money.
What do you think these 20% traders do that the rest don’t. The answer is simple: forming an effective trading strategy.
We always stress traders to first learn binary options from the scratch and then focus on strategy formulation before starting live trading.
“Without strategy, execution is aimless. Without execution, strategy is useless.” -Morris Chang
Therefore, form and pick a trading strategy, and then act upon it. You will find yourself drowning in profits.
In this article, we want to discuss the double up strategy. It is favorable for beginner traders, is easy to execute, and profitable.
What is the DoubleUp Strategy?
As the name suggests, this strategy involves doubling up on your profits. And what if I told you, it is possible with the click of a button! It is that simple to execute.
However, when and for which trades should you execute it is a whole another story. So what is this double up strategy?
Double Up is nothing but a feature that binary options brokers provide. This feature enables you to double your initial investment with a single click and hence doubling your profits.
Not all brokers offer this feature and hence not all binary options can avail it. You can check your binary options trading platform for this feature.
It is usually marked as “x2” or something similar to that. It depends from broker to broker.
How to Utilize the DoubleUp Strategy? Things to keep in mind
So the double up strategy is determining when to use this feature and when to avoid it. Since you lose your investment when you lose a binary options trade, your losses are doubled as well.
Hence, treat this feature like a double-edged sword. Common sense would dictate using this strategy only one trades that you know you will win.
But with binary options, it is quite hard to predict if you will win the trade for sure. This is where analyzing the trading charts come into play.
Some things to keep in mind are that this feature can be used in the trades where you are “in the money”
Another thing you have to keep in mind is that there is a window for you to execute the double up move. This usually happens 5-10 minutes before the expiry time of the trade.
So if you were thinking you could double up on a winning trade just seconds before it ended, you can’t. Brokers are not that naïve. They would go broke if that were the case.
The optimal use of this strategy would be to understand the market. Price charts have wave like motion. The price keeps falling and rising due to a number of factors.
However, there are occasions when the price movement is linear in direction. Either up or down. And it tends to stay like that for a short while. You need to analyze when such situation occurs and avoid them.
Lesser the volatility, the easier it is to predict the market.
The DoubleUp strategy is a great way to increase your trading profits. Where you could have earned $500 as the payout, you end up earning $1000. So it’s a great feeling when doubling up pays off.
However, it doesn’t mean you should always use it. Especially when trading assets that you are not too familiar with.
Use indicators and try to analyze the trend before you enter your trade. Only use the double up feature when you are quite certain you have the trade in your bag.
It is better to earn your usual payout rather than losing twice your initial investment. Keep an eye on our strategy section for more binary options strategy breakdown and analysis.