Trading Martingale on Volatility Indexes

Could trading the Martingale on the Volatility Indexes be the answer?

We have never really been a big fan of Martingale trading here at The Club, but we now realise that maybe we have been looking at it from the wrong angle.

As most of our trading produces In The Money (ITM) results of between 60 – 70 percent, when we add a Martingale to it, to cover the losing trades, the results are a complete disaster.

You get a run of too many winning trades on the one side and too many losing trades on the other, so depending on which side you took, it is either great or a disaster.

What we have come to realise is that to trade with the Martingale successfully, you must have a system that would be a failure in normal trading.

You need a system that produces roughly 50/50 results consistently and doesn’t have long winning or losing sequences.

Now 50/50 results trading binary options normally would be a losing strategy, but when you trade those results with a Martingale, the results are fantastic.

What we have been doing with good results is to trade two instances of the binary bot taking the same trade, but in different directions using the “Follow Trend” or “No Follow Trend”

That means one trade is a pullback and the other is a continuation of trend.

So, now we are not bothered about the direction anymore as we have both covered.

We have been doing that on the 15 minute charts with a 15 minute expiry and it is producing very nice results indeed.

The 15 minute time frame with 15 minute expiry times doesn’t produce as many trades compared to trading on the 5 minute charts with 5 minute expiry times, but the trades are more random, which results in roughly a 50/50 overall result which is what we want.

Below is the results after running the bot for 7 days on a real account with the minimum trade amount of 35 cents.

The profit is $23.81 on the one instance of the bot, and $21.30 on the other instance of the bot, for a total profit of $45.11

This is on course to double a $160 account in a month as has been the case since we started doing this awhile back.

$160 being what you need as an account balance to run a 7 level Martingale with a Martingale Multiplier of 2.2 and starting from just 35 cents.

Remember that 7 levels of Martingale is in fact 8 trades

That being the first trade and then 7 Martingale levels with a 2.2 multiplier.

0.35
0.77
1.69
3.72
8.18
18
39.60
87.12

You would need $160 to be able to run this.

7 days follow trend results
7 days Follow Trend results

 

7 days No Follow Trend results
7 days No Follow Trend results

Remember that this is with the very minimum trade amount of 35 cents.

The Stop Loss is set at $165.

This is a different mind set for trading binary options.

You either going to double your account in a month or wipe it out.

Having said that, after a first weeks profit of $45, even if this account got hit with a 7 level Martingale and lost, the actual losses would only be $120 as it had already made $45 in profit.

So as each week progresses, the possible losses decrease.

Compared to our copy trading service, there is no way that we could double an account in a month

No way.

Mind you, it would also be pretty difficult to wipe out a properly funded account, but then again, you not really moving forward as quickly.

You need to think about trading binary options more in a gambling mindset.

Go hard for a month and either make some decent profit or not.

Remember that you can get the bot and settings for free from us and rent a VPS and set it up yourself and go for it, or you can also check out our service, where we set the whole thing up for you on a VPS.

==>> Check out our Bot Service