Exactly two weeks ago, on the pages of comparic.com I presented strategy – End of the Day. This strategy was based on Pivot Point (PP) levels and SMA33 and Fibonacci measurements. For past two weeks, I have published analyses and potential investment setups based on this strategy. As I promised after 2 weeks of tests now came time to make a summary and check if this strategy would make a profit and whether it was worthwhile to invest on it.
To be able to answer these questions, I have compiled detailed statistics. I realize that two week period is too short to say clearly whether the strategy is profitable or not but the first conclusions already come out.
In the past two weeks, the strategy would allow for 38 transactions, of which only 12 would be profitable and 26 would be losses. Taking into account that in the case of options the ratio of profit to risk is always less than 1: 1, at first sight we see that the strategy would expose us to considerable losses.
Of the 12 profitable positions we could generate a profit of 9.02: 1, which means that if we risk 1% of our capital each time, we could earn 9.01%.
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Of the 26 losses, we would have generated a loss of 26%. Summing up both of these results, we conclude that investing in End-of-Day strategie would only lead to a 16.98% drop in capital over the past two weeks, with 1% risk factor for each bet.
The only profitable day was Friday 15.09.2017, when the signal efficiency for the end of the day strategy was 100%. At that time, we could open 3 positions, with a total return rate of 2.25: 1.
The worst day was Thursday, 14.09.2017, when from 8 signals only one would make a profit. The loss of this day could be as high as 7.23: 1.
The only viable instruments that would have made a profit in the past two weeks were currency pairs:
AUDUSD (2 signals profitable = +1.54: 1)
NZDJPY (2 signals profitable and one loss = +0,42; 1)
USDCHF (1 signal profitable = +0,78: 1)
EURGBP (1 signal profitable = +0,76: 1)
By investing only on these four instruments, you could achieve a 3.5: 1 return rate. However, taking into account general statistics, it should be clearly stated that this strategy (at least for the time being) is not profitable. Now has come time to present another strategy that I will be testing for the next two weeks and on the 8th of September I will make a summary of its effectiveness. The second strategy to be tested from tomorrow is : EMA Rainbow. Detailed description in next article.
In conclusion, in current ranking of setups for binary options, setups based on Price Action are on the top and allow us to book regular earnings. All the analysis from this cycle can be tracked every day, in the morning under the tag “Option for Today” on comparic.com. Detailed statistics for this strategy are available in a separate article.
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