Monday, December 26, 2011

Binary Equation Forex Trading


Binary Equation Forex Trading


Binary Equation Trading has been expressed as the “trading strategy with a mathematical advantage”. Based on the work of the 18th century mathematician, Jean le Rond d'Alembert, it produces a "Probability Advantage" that can bring amazing profit!

One need not be a mathematics genius to understand the working principles behind binary equation trading. It has no complicated indicators or does not encourage news trading. In other words it is quite easy and fast.

It allows the traders to take a view on the expected direction of the exchange rate between major world currencies. For example, on a specific day, for USD/CHF > 1.3000 the method allows the traders to take a position on whether the USD/CHF exchange rate will be greater than 1.3000 or not for the day.

The trader can buy if the USD/CHF exchange rate (according to him or her) is going to be greater than 1.3000, and sell if he or she thinks that the USD/CHF exchange rate will be less than or equal to 1.3000.

Binary Equation Trading = Confident Trading

What is most important for you as trader to identify and interpret the signals based on which you can form your own decision in forex trading. If your trading platform is based on the century old binary equations the predictions are going to be fool proof. The rules and logics are fully explained and therefore you can have confidence in the system even when you experience a string of consecutive losses.

Most of the systems based on binary equations have made money in the real world of trading - not just hypothetically. These are always better than any optimized system which uses unique rules or different parameters to trade in specific financial markets. But the trading methods based on binary equation works satisfactorily for a broad spectrum of financial instruments.

You can always build your own system with some inputs from the trading methods based on binary equation to customize the system and to implement a rigid discipline, which is the key to building consistent profits.


Gaining the Forex Mathematical Advantage

If your automated forex trading is based on the binary equation method, it is easy for you to rely on it. It conducts trade in real time and as you need to take quick decisions they are to be accurate so that you do not incur unwanted losses.

As the trading has to be performed within milliseconds, it is to be based on the mathematical formulations for producing fast and accurate results.

The trading method based on binary equation brings in the diversification you require for maximizing your profit. As the mathematical backbone is present for the entire system, it can be applied for any market operating in any time zone, with equal considerations. You can also adopt multiple trading models.

Your automated model to analyze short-term data will be based on the mathematical models which is rather impossible to achieve for a manual trader.


Analyzing Short-Term Data for Long-Term Profits

You can use these short-term data to analyze how the market is going to move in the next 15 minutes or half an hour, and accordingly take decisions. High frequency trading based on binary equation allows you to use existing data in different ways and in different markets.

A trading method based on binary equation improves liquidity. The risk management logic is also based on mathematical calculations; this ensures that you are not going to take wrong steps resulting losses.

If you are interested in trading Forex with the Binary Equation method then we recommend Profits are Up - a Binary Equation Forex strategy system with incredible results.

Next we will look at how to develop your own Forex strategy and the benefits of doing so, click the 'next' button below to continue.

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