Oscar Grand Strategy: a tale of eternal profit
- VFX Blog
Nobody wants to strain, learn new things and worry about the result. It is better to find a "magic" technique and make a profit anytime, anywhere. There is nothing wrong with this: leaving your comfort zone is always accompanied by stress. If you enter into any search engine the phrase «how to make money on binary options» on the first page, there will always be Oscar Grand strategy.
How it works
The first mentions of gambling date back to Ancient Egypt and probably even then there were legends about players every day leaving institutions with full pockets of money. These include Grand, who has never been seen. There is an opinion that the surname comes from English «grind», so called players with small bets. As things didn't matter, let's take a look at the steps of how the method works:
1. Select the amount of the first transaction, or in terms of the «One» strategy, as a percentage of the current amount of deposit. If you adhere to strict money management, we do not go beyond 3-5% and do not forget that binary options payout is always less than 100% and it will be more difficult to compensate for losses than in Forex.
2. Open the first option for the amount of «One».
3. If a loss is received, the amount of the next trade does not increase.
4. In the case of earnings increase amount for «One» size.
5. Continue to trade, sticking to the previous items, until the losses are compensated and the profit equal to «One» is obtained. This is where the cycle ends, and we start with paragraph 1.
Let's move on from theory to practice. Let's look at an example with an initial option amount of $ 5 and a premium of 85%.
There are calculations on the Internet with payments of up to 95%, but not all brokers have such bonuses and only on some assets. We take the average version.
The table can be continued further and put the profit/loss where necessary and convince you that the strategy does not have a loss. Pay attention to how many winning trades are needed in a row to compensate for the current losses! It is easier to do this on paper, but in real trading binary signals, there are problems, which we will talk about below.
On the Internet, you can find paid options for the strategy, even with photos of the Oscars. Of course, this is only marketing; you can trade on the system for free!
Let's start trading
Before using the strategy, you need to solve several important problems:
• «Open the next option». But when exactly to enter the market? If, when using Martingale with doubling rates, this is done immediately after the expiration of the current deal without analyzing the current market, then the description of our strategy does not give any advice on this issue.
If you still use a trading strategy, make sure that it gives at least 70% of profitable binary live signals; otherwise, it will be very difficult to compensate for losses. It doesn't matter whether the Grind is used or not.
• Expiration. It is the wrong calculation of the options expiration that often leads to losses, even if the entry point and the CALL/PUT direction are correctly determined. But, the technique suggests trading as if expiration does not exist at all and beginners can fall into the trap of «win» fantasies.
The faster a trader starts thinking in terms of time, not money, the longer they will stay in the market!
• «The likelihood of a long series of losing trades is negligible and the Oscar Grind system always compensates for losses and makes a profit». How often can a similar phrase in different versions are found on websites and in advertisements of binary «copyright techniques». Thus, there is hidden processing of newcomers in the direction of Martingale: no need to think, we open in any direction, because someday the losses will be followed by profit. It is a pity that the market is not aware of such statements; see the example in OlympTrade signals software.
On the left, we see an illustrative example of how the market can «hold» the trend for a long time, decreasing practically without corrections and pullbacks, only with short periods of consolidation. It is easy to understand that with an incorrectly chosen direction, a series of losses can, if not completely withdraw the deposit, and then give such a drawdown, to exit from which an equally long period of profitable trades may be needed, and it is very difficult to catch such a moment.
On the right is the opposite situation: the downtrend and the uptrend following it were in a fairly wide corridor, you can try to open options on a rebound from its borders, observing the rules of the strategy. It is important to understand in time when the movement ends, and we again come to the use of technical indicators and other elements of comprehensive market analysis.
When will the strategy be most effective? Only on the sideways market in a wide range of at least 30-50 points. Here you can really believe that the losing series will not be very long and it will be possible to close the losses without allowing large drawdown. The main thing is not to trade binary signals when the corridor starts to decrease, the trend is close. Do not take risks when there are 10-15 points between the support/resistance lines!
It is almost impossible to find reliable data on how the strategy actually works in binary options, most often there are similar profitability charts and risks:
What useful information can you get from the picture? Answer: nothing. First of all, it is not clear what tool was used to do this, because binary signal software does not have built-in testing modules. Trading conditions are also not announced: asset, amount, expiration time and other important factors without which it is impossible to adequately assess the result.
During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!
Also, see how long the Martingale lasted (even without knowing the timeframe). Such a result cannot be obtained by simply doubling the volume of the next trade. The influence of the trading strategy for determining the entry point and direction of the option is visible here. Thus, testing cannot be called «clean» and such charts cannot be trusted.
We regularly take profit. Martingale always leads only to losses, so use periods of a strong trend to the maximum.
Let's summarize. Oscar Grand free binary options signals are just another version of the «soft» Martingale, which, albeit slower, always leads to the loss of the deposit. It cannot be used in isolation from general market analysis. You must know when, where and with what expiration to open an option. And only then decide whether to increase the amount of the transaction or not.