In 28 minutes actually. We stumbled upon this YouTube video where a trader does just that and shows viewers his actual trading. He calls this the “5 point strategy”.
The Five Point Trading Strategy
Our thoughts:
- This is essentially a martingale system, with a very random entry point. The trader did not exercise any form of analysis at all; trading purely with money management.
- This trader is betting that a price will not persist in the wrong direction for 5 minutes, since he expects to be profitable in under 5 trades. So trades 1 to 4 may be wrong, but it had better make good on all first 4 trades using the 5th trade. He is looking at 1 minute charts so it does seem fair to assume that prices do not persist in 1 direction, minute on minute, for too many times.
- He can improve the success of his system by entering with a high probability signal, as opposed to entering randomly. A high win rate signal coupled with this 5 point strategy would make a decent binary option trading system.
- We also noticed that his broker only pays out 70% on 60 second binary options, that is very low since the broker we use pays out 85%.
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