Oscar Grind binary options/forex strategy

In the society of financial market traders, there is a story about one investor who did not need to conduct any technical or fundamental analysis, he just tossed a coin and made a deal. It is easy to guess that in this case, the chances of the outcome of the transaction were 50-50, but he still managed to get a stable income. How? It's simple – he used the Oscar Grind system, which he successfully integrated from the world of gambling into stock trading as a method of money management.

WHO IS OSCAR GRIND

Today, it is not known exactly whether this character is true or fictional, since the surname Grind (or Grind English) comes from the gambling jargon "grinder". This is what gamblers who work with small bets are called. But at the same time, there is often a legend about the player Oscar, who in the middle of the twentieth century always left the casino with full pockets of money and never lost in his entire life. He used a unique win-win betting system that can be easily applied on binary options.

METHOD PRINCIPLE

The Oscar Grind method is similar in many ways to the martingale system, but it remains less risky. It also provides for an increase in the bid, but more complex. Oscar Grind left a list of the rules of his system in his will:

The main rule is to set the "Unit" size. "Unit" refers to the amount of the initial investment. If an investor has a Deposit of, say,$ 400 and is willing to risk five percent, then his Unit will be $ 20.

The second rule is that trading always starts with an investment of the same size as One.

The third rule is that if a profit was made in the first bid, the next one does not increase.

The fourth rule is that if you receive a loss, do not increase your bids in any case. After each failed trade, the size of the next one should be the same as in the previous one.

The fifth rule is that after making a profit, the next investment must be increased by the Unit size, but no more.

Rule six States that in the case when a profit equal to One was received, then it is necessary to stop increasing bids and start the system cycle again.

In other words, the Oscar Grind system in money management does not provide for an increase in options after each loss, which keeps the risk at an acceptable level, but at the same time trading is carried out until the total profit on Finance is received.

Let's look at an example of how the Oscar Grind system is used in binary options trading:

Five trades were profitable, and the other five were unprofitable. In normal options trading, such an outcome would inevitably bring losses, since the yield of an option is always less than the loss. But using the Oscar Grind system in money management, even such an unfavorable ratio brings profit in the end result.

YIELD

Since the financial method of Oscar Grind is very similar to the martingale system, it is logical to evaluate profitability and loss-making in comparison with it. Both systems have the same conditions with a Deposit of $ 1,000 and an initial bid of$10.

It is immediately clear that the financial system of Oscar Grind is slightly behind the martingale method in terms of profitability. At the same time, there is a greater number of drawdowns that occur due to insufficiently large volumes of profitable transactions.

RISKINESS

From the article about Martingale, it is known that its weak point is a series of unprofitable trades that can completely ruin the trader's capital. Now let's see how the Oscar Grind system behaves in money management:

It took only seven losing trades in a row for Martingale money management to completely ruin the Deposit. The financial method of Oscar Grind also went into a drawdown, but it not only did not ruin the trader, but also left him in profit.

But the Oscar Grind system also has a weak point – it is not a large enough string of profitable options. Often, to withdraw an account from a drawdown, it takes 2-3 profitable trades in a row, and if this does not happen for a long time, then Oscar Grind drags the Deposit into a deep drawdown. But you should understand that the chances of this are very small.

CONCLUSION

Oscar Grind's financial system in binary options money management can make a profit even with a loss-making trading strategy. However, it does not have such high risks as martingale. Therefore, it is worth looking at it for all those who show a desire to manage such methods as "risk-free".