Brokers, Strategies, Indicators, Signals

Money Management Binary Options

Economic Plan 60%: 2 million euros in less than two years!

With just 60% winnings and 73% payout! 

 But will the broker pay?

A curious calculation that if put into practice it would give 2 million euros in less than two years, with ITM at 60% and average payout at 73%!

The calculation is not wrong, but transforming it into real results would clash with the willingness of brokers to meet their commitments, not to mention the risk associated with the use of these figures. Nevertheless, it remains an interesting, albeit theoretical, calculation to discover the earning potential of trading, even with rather low success rates.

CAUTION. What follows is a purely theoretical mathematical calculation, and its purpose is to aim for a trading model that gives us at least “only” 60% of positive closings, as an average.

60%, so little?

When looking for a trading model, the first thing you want to know is: what is the percentage of positive closings?

Often advertised systems promise 80, even 90%… will it be true?

And then we are looking for an alternative to 80/90% that costs a little less, some say they would “settle for” 70% … maybe spending little there … few in fact are willing to risk 3000, 5000 or 10 thousand dollars … and if then does not work?

An economic plan with 60% positive results

But have you ever thought instead of a trading plan that can only give 60%?
Maybe with a single investment payout of only 73%… that is, even choosing an asset for which the Broker gives a return of 73%.

You wouldn’t buy it would you?

gift

But no, 60%… and on each trade I only win 73%… it’s a failure!

 Not even as a gift !!!

With 60% I definitely lose

Let’s see what happens in a case like this?

How long does it take to destroy the account?
We repeat again: you buy a trading model that gives 60% of useful results, credible right?
Probably, even if our strategies, or binary options signals, don’t go very well, maybe we could aim for a conservative 60%.

See what happens with this model at 60% and with a single investment of 5% by adjusting the percentage every weekend, calmly.

Let’s make the hypothesis of starting with an account of 500 euros (then each of us sees our possibilities … the time to reach our goal decreases or increases …).

The first week each investment will be 25 euros for the 5 useful days.
The second week we adjust the percentage always remaining at 5%.
We have 60% positive closed trades every weekend.

Let’s do a calculation by imagining that we only make 10 trades per day, win 6 and lose 4.
Each week we imagine we have this average.

It is very probable that it is a real average, perhaps not considered every week, but over time it is credible; 6 we win and 4 we lose.

Out of 100, 60 we win and 40 we lose… it’s credible.
And the payout is fixed at 73% !!!
As little as possible (at least we don’t make money;)!).

First week – Economic Plan 60

Capital 500 euros
Single investment 5% = 25 euros
10 trades per day.
The week ends with 50 trades executed, 30 we have won and 20 we have lost.
On those won we earned 73%, that is:
25 euros for 30 trades = 750 euros, we won 73% = 547.50 euros.
We lost 20 of 25 euros so we lost 500 euros.
At the end of the first week, we only won € 47.50.
And we spent a week in the war looking for the right signs !!!
But we have patience and let’s move on!

Second week – Economic Plan 60

We start the second week by always adjusting the investment to 5%,
each trade will now be 5% of 547.50 = 27.375.

The first week we won 9.5% of the capital (9.5% of 500 euros
are 47.50 euros), so every week we win 9.5% of the capital, which however gradually increases.
This is if every week we adjust the single investment to 5% of the capital.

Let’s see immediately what happens:
1st week (capital 500.00) + 47.50 Investment 5% = 25 €
2nd week (capital 547.50) + 52.01 “= 27 €
3rd week (capital 599.51) + 56, 95 “= 30 € …
4th week (capital 656.46) + 62.36
5th week (capital 718.83) + 68.28
6th week (capital 787.11) + 74.77
7th week (capital 861.89) + 81.88
8th week (capital 943.77) + 89.65 = 1033.00 euros
9th week (capital 1033.43) + 98.17
10th week (capital around 1132.00) …
We can establish that every 8 weeks the capital doubled (approximately).

After 16 weeks with our 60% economic plan we will have around 2000 euros

after 24 weeks 4000
32 weeks 8000
40 weeks 16000
48 weeks 32000
56 weeks 64000
64 weeks 128000
72 weeks 256000
80 weeks 512000
88 weeks 1024000
96 weeks 2048000 !!!!!!!
96 weeks is a year and 44 weeks, that is a year and 10 months approximately.

🙂 What is the work that can give two million in less than two years?

Only with 60% winnings and a 73% payout!

However, the considerations are that each of us would like to win immediately and as much as possible, but we have always seen that we cannot .