The purpose of the simulation is to compute the minimum efficiency that trading system to have to consistently make money on Binary Options.
For simulation purposes, assume several values:
100 – the total number of all entries in the position
$ 10 – unchanged value of each individual investment
75% – average return on investment in Binary Options
A few words at the outset:
• I assume100 entries in the position because this number of transactions is significant for the development of performance statistics, necessary for the slow but continuous earning on Binary Options. Smaller number of entries may result in distortion and as a result unnecessary capital loss.
• The risk for one transaction is $ 10 and is a constant value but only for the purposes of this article, and only because of the transparency of the calculations. In the professional MM (capital management) risks should be in range from 1 to 5% of the deposit and the same amount should increase with increasing deposit.
• Return on investment 75% is average, binary options brokers offer a refund in the range of 65% to 85%, so the value of investments includes both more and less profitable.
Already at this stage, before simulations, fundamental fact can be established. The relationship is inversely proportional, the greater return on investment (eg 85%), the less effectiveness is necessary to come out on the plus side, and the lower return on investment (eg 65%), the more effectiveness is necessary to make profits.
It’s true what’s included in a series of articles:
Successful investing in Binary Options Part 3
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