For binary option traders trading platforms that offer only the high-low type of trades, the following performance challenges will help test your skills.1. For one-minute binary expirations, turn on one-minute three-line break
charts and trade when you see a reversal of colors.2. For five-minute binary expirations, wait for a parabolic curve to be formed and trade the opposite direction once it reaches a peak and then starts reversing.
Trade a 15-minutes expiration.3. For a 30-minute binary expiration, locate an underlying market that has a sideways range of about 30 pips and place a double Bollinger Band on it. Wait for the price to reach the outer band and then reverse. Then puta 30-minute expiration on the direction of the reversal.Analytical Challenges While putting on trades is ultimately the best form of testing your skills, it’s important to also challenge your analytical abilities.
The following analytical challenges are evergreen. They do not go out of date and can be done anytime.4.Scan the binary option underlying markets for markets that just reached new weekly highs. 5.Among the floating currencies, what are the widest interest-rate differentials?6.What is your adjusted win/loss ratio (remove the highest gain and the highest loss, and then recompute the result)?7.Find the underlying market that hit new weekly lows. 8.Compare the S&P 500, Shanghai Composite Index, and on their past three-month performance. Which pair is the most divergent?
9.On the next Wednesday, choose three underlying markets and find the ATM bid/ask. Choose the one that is most likely, in your opinion, to go from ATM to ITM and place a trade with a 50 percent profit limit.10.Find two underlying markets that have had a very narrow sideways channel in the past month. 11.Conduct a review of headlines on the U.S. dollar and develop your own risk appetite/risk aversion sentiment ratio.12.Locate and review the nonfarm payroll jobless claims data and determine if there is a trend up or down in the data.
13.Determine on the economic calendar when the next Tankan report is coming out.14.Do a scan of the currency pairs and evaluate their three-line break patterns.Which pair has just experienced a three-line break reversal using the oneweekchart?15.Which of the underlying markets are experiencing a sideways one-week channel?16.Find the appropriate ETF for the underlying market and locate the at-the-money put/call ratio.
Is it skewing to the bearish or the bullish side?17.Look at the gold/oil ratio. Is it at an extreme?18.Check the Shanghai Index and overlay it against the AUD/USD. Try to predict next week’s direction.19.Go to the central bank of Switzerland (www.snb.ch) and read their monetary policy. Find out when was the last time they raised interest rates.20.Find the binary option strike prices that are near the 61.8 percent weekly or daily Fibonacci resistance lines.