Full Review of the Conservative/Long-Term Strategy for Binary Options
Binaryoptions.net is one of best websites dedicated to trading binary options and offers up some of its own strategies. There are three different strategies based on risk appetite, this article takes a look at the conservative/long-term strategy. Suck or Doesn’t? Found Out!
What Is The Binaryoptions.net Conservative/Long-Term Strategy
The Conservative/Long-term Strategy is a recommended “low-risk” strategy presented by BinaryOptions.net. This strategy was designed with two goals in mind; to reduce risk and build capital slowly and steadily. After reading the strategy I wonder if the traders at BinaryOptions.net know what the words conservative, long term and low risk mean. The strategy is based on a variety of tools including the zig-zag indicator and Fibonacci retracement. The zig-zag indicator is meant to smooth out random price fluctuations while the Fibonacci retracement is meant to measure potential turning points based on the ratio’s Fibonacci found inherent in nature.
- Click here for Binaryoptions.net Conservative Strategy
How Do You Use The Conservative/Long Term Strategy
This strategy is meant to reduce risk by waiting for the “perfect” set-up. To start, simply draw a Fibonacci retracement from the first two zig-zag peaks on your chart. This sets up the trend for the analysis. If the second point is higher than the first point the trend for the Fibonacci is up, if it is lower then down. The signal is generated when prices retrace back above the 50% level or higher. In order for the signal to be valid traders are instructed to wait for these three criteria: 1) Price hits the 161.8% Fibonacci retracement 2) Prices are not within the red channel zones and 3) The Value Chart is 8 or above.
Why This Strategy Does Not Suck
I always like to start out with why a tool or strategy does not suck because we are here to weed out the bad and discover the good. What I have discovered here is that this strategy doesn’t have any non-sucking parts to it. What I found was a strategy that is so confusing, contradictory and complicated that there is no way a newbie can use it successfully. Not to say that it isn’t a good, profitable strategy, just that this is a very poorly presented and explained one and one that doesn’t live up to the claims of being a conservative long term strategy good for new comers to “the game”.
Why This Strategy Sucks
This strategy sucks. First, the authors completely fail to reveal what time frame charts to use. Near the end of the article they tell you to use 5-20 minute expiry but this just leads me to another point. This is not a long term strategy. 5-20 minute expiry is just about as short of an expiration time as you can get in binary trading and a highly risky way to trade, definitely not recommended for newbies. Also, there just isn’t enough detail. Too much is taken for granted. I am fairly experienced and can read between the lines but can a newbie? Or someone caught up in market action? They tell you to use a Fibonacci but do not specify if it is a retracement, arc, fan, time series or Fibb-Gann retracement. Adding to the confusion is a very wishy washy set of criteria for this perfect set-up. At one point we are told to wait for a retracement of 50-85% of the original trend but later we are told to wait for a 161.8% retracement. To cap off why this strategy sucks lets also consider the instructions to wait for prices to move outside the red channel. What is the red channel, where did it come from and why is it here? And what is a vale chart. I may be showing my ignorance here but when I Google value chart, forex value chart and stock value chart all I got nothing relevant.
My Last Words On The Conservative/Long Term Strategy – Sucks
Well, I think you may already know what my last thoughts are on this strategy…..it sucks, don’t use it. As written and instructed this strategy is useless. I wanted it to be good but it just isn’t. There is too much analysis, too many advanced charting techniques and not enough information. A new trader will get tangled in the process and likely lose money. Adding to my disdain is the recommended money management techniques recommended for this strategy which are basically a Martingale desinged to make you about “$5k profits within 20 days”.