Exactly two weeks ago, on the pages of comparic.com, I presented MA Stochastic’s strategy for Binary Options. This strategy is based on two standard indicators that should be found on every web platform or MT4. These indicators are:
Moving average – change period to 12, other settings unchanged
Stochastic Oscillator -% K with a value of 12,% D and Slowing with a value of 3.
For last two weeks I have published partial statistics showing the daily rates of return that could be achieved by investing on the basis of this strategy. As I promised, the time has come to recap and check whether this strategy would allow us to earn and whether it is worth making investment transactions on its basis.
As I conducted the tests on a 5-minute interval with a 15-minute option expiration period, the statistics refer only to the 4 most-popular currency pairs in the hour. 8: 00-16: 00:
When investing on other instruments or at any other time of the day, separate tests would have to be carried out. This experiment was to verify whether this strategy has any chance to be profitable and whether it is worth spending time on its detailed testing and trading based on the signals it generates.
During past two weeks (10 sessions), between 8:00 and 16:00, on the observed currency pairs, the MA Stochastic strategy generated a total of 288 signals. 142 of them turned out to be profitable and 146 lossy. This means that the effectiveness was at 49.30%. Taking into account the rates of return on investments, which at the uTrader broker are between 76% and 81% in total, by making 288 transactions, we could lose as much as 36.16: 1. This means that risking 1% of your capital each time, in just two weeks, we could lose as much as 36.16%.
During these two weeks, only two sessions turned out to be profitable and eight losses. The biggest daily profit was 3.83: 1 and the biggest daily loss was – 11.17: 1.
The only profitable currency pair was the USDJPY pair, where you could earn 3.68: 1. Also noteworthy are the AUDUSD CALL options, which generated a total profit of 4.48: 1.